U.S. EV Adoption Slows While Global Demand Accelerates

Electric vehicle sales in the United States are set to account for only 17% of all nationwide passenger vehicle sales in 2030, BloombergNEF said in its latest EV outlook, slashing its 27%-share projection from last year as the Trump Administration ended incentives for electric vehicles.

Back in 2024, the year before President Trump won a second term in office, BloombergNEF expected EVs to have a 48% share of total U.S. passenger car sales in 2030.

With the scrapping of the incentives for electric vehicle purchases, analysts, including those at BloombergNEF, have drastically reduced their EV sales projections for the United States.

While the U.S. EV momentum is certainly slowing, the rest of the world has just had a massive geopolitical incentive to boost EV adoption. The closure of the Strait of Hormuz and the following fuel price spikes in all regions have prompted more drivers to buy or consider buying electric vehicles.

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 in its annual EV report last month.  

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.

In Europe, EV sales jumped by close to 30% year-on-year in the first quarter of 2026; 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.

BloombergNEF’s annual Electric Vehicle Outlook (EVO) report expects over a quarter, or 27%, of cars sold globally in 2026 to be electric – up from 9% five years ago. More than half, 52%, of all passenger vehicles would be electric by 2035 globally, according to BNEF’s report.  

By Charles Kennedy for Oilprice.com

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