Electric vehicle sales could hit nearly 30% of all car sales in the world this year as drivers accelerate a shift to EVs and hybrids amid spiking fuel prices in the wake of the Iran war, the International Energy Agency (IEA) said on Wednesday.
Following strong growth in 2025, this year EV sales are set to reach 23 million globally in 2026, accounting for almost 30% of all cars sold worldwide, the IEA said in its annual Global EV Outlook 2026 report out today.
Last year, EV sales grew by 20% globally and accounted for one-quarter of all new cars sold were electric cars. This year, the share is moving closer to 30%, as surging fuel prices encourage more drivers to switch to electric vehicles.
Due to policy changes, especially in China and the United States which reduced or phased out incentives, respectively, global EV sales dropped by 8% in the first quarter of 2026 from a year earlier.
However, this overall decline masked strong sales growth in many other countries and regions, the IEA said.
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In Europe, EV sales jumped by close to 30% year-on-year; in the Asia Pacific region excluding China, sales surged by 80%; and in Latin American EV sales soared by 75% between January and March compared to the same period last year, the agency added.
As oil and fuel prices spiked in March due to the Middle East conflict, nearly 90 countries saw annual EV sales increases, including 30 countries in which electric car sales logged record-breaking monthly sales, the IEA noted.
“Looking ahead, the falls we have seen in battery prices and the potential policy responses to the current global energy crisis are set to provide further momentum in EV markets,” IEA Executive Director Fatih Birol said.
EV sales in Europe continue to rise, with demand for electric vehicles jumping by 34% in April.
By Michael Kern for Oilprice.co
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