EV sales hit record highs in 50 countries amid oil crisis

Electrified vehicle sales hit records in 50 countries during the second quarter of 2026, putting battery-powered cars and plug-in hybrids on track to capture 29 percent of the global auto market this year, the International Energy Agency reported on July 30, 2026.

Global sales of EVs and plug-in hybrids climbed 4 percent from a year earlier and surged 35 percent over the first quarter, the IEA said.

The agency attributed the boom largely to fuel price spikes triggered by the conflict between the United States and Iran, noting that road vehicles consume nearly half of the world’s oil, leaving the sector exposed to supply shocks.

The gains came even as the broader auto market struggled. Global car sales shrank 5 percent in the first half of 2026, weighed down by falling shipments in China and the United States, the two largest markets.

US electric car sales had already softened after the Trump administration scrapped federal EV tax credits and relaxed fuel-economy rules for combustion-engine vehicles.

By contrast, consumers elsewhere flocked to EVs. India, Brazil, Australia and South Korea all set first-half records.

Europe also posted strong growth. In the United Kingdom, battery-electric vehicle registrations rose 35 percent in the first half from a year earlier, according to the Society of Motor Manufacturers and Traders. Together, BEVs and plug-in hybrids accounted for 36 percent of UK car registrations so far in 2026, the SMMT said.

China has been the biggest beneficiary of the electric wave, with automakers such as BYD expanding into Europe and other markets. The share of electric cars in the country’s exports jumped from about 35 percent in 2025 to more than 45 percent in the first half of 2026, the IEA reported. However, Chinese factories are building more EVs than they are selling, with an estimated one million unsold electric vehicles piling up.

The IEA also highlighted China’s commanding grip on the battery value chain, citing integrated supply chains, strong battery capabilities and production costs roughly 35 percent lower than in advanced economies.

It warned that other countries will need coordinated government and industry efforts to close that cost gap.