Theme of the Day: Close to 30% of cars sold this year are set to be electric as countries and consumers respond to energy crisis

After strong growth last year, global electric car sales are expected to rise again in 2026, reaching 23mn and accounting for close to 30% of all cars sold worldwide, according to the new edition of the IEA’s annual Global EV Outlook. The report examines key market and policy trends related to the deployment of electric vehicles and charging infrastructure, as well as the implications of growing EV adoption for electricity, oil and emissions. In 2025, global electric car sales grew by 20% to exceed 20mn, meaning that a quarter of all new cars sold worldwide were electric. In around 40 countries, electric cars accounted for 10% or more of new cars sold. In terms of production, Chinese automakers supplied 60% of electric cars sold worldwide, while European and North American automakers were each responsible for about 15% of global sales. Following policy changes in China and the US, global sales of electric cars in Q126 fell by 8% compared with the same period in 2025. However, this overall decline masked strong sales growth in many other countries and regions. In Europe, sales increased by close to 30% YoY; in the Asia Pacific region excluding China, sales jumped by 80%; and in Latin America, they were up by 75%. In Mar, close to 90 countries around the world logged YoY sales growth, with ~30 of them registering record-breaking monthly sales. The report finds that EVs are increasingly cost-competitive in key markets, which could reinforce demand, including from consumers worried about volatile fuel prices. By 2035, even without any new policy announcements, the global fleet of EVs (excluding two- and three-wheelers) is projected to surge as high as 510mn, up from nearly 80mn today. The report finds that sales of electric trucks are also growing significantly, with the vast majority in China. Global sales more than doubled in 2025 from the previous year. Electric models accounted for nearly one in ten trucks sold worldwide last year. And the most electrified road transport segment, two- and three-wheelers, continued to grow in 2025. Southeast Asia was highlighted as a region where the momentum behind electric vehicles is particularly strong. Annual electric car sales in the region more than doubled last year, giving them a market share of close to 20%. According to the latest projections, that share could surge to 60% by 2035, based on supportive price dynamics and policies. Some countries in Southeast Asia – including Vietnam, the largest EV market in the region – have already announced plans to expand or extend EV tax incentives as part of their response to the current energy crisis. China remains the world’s largest manufacturing hub for EVs, making nearly three-quarters of the almost 22mn electric cars produced globally last year. As production outstripped domestic demand, Chinese electric car exports doubled to a record high of more than 2.5mn. Outside of the three major EV markets of China, Europe and the US, 55% of the electric cars sold in the rest of the world were imported from China – up from less than 5% just five years earlier. China also remains dominant in EV supply chains, accounting for over 80% of battery cell production in 2025 and even higher shares of production of key materials in EV batteries.