Electric vehicle sales are on course to represent nearly 30% of all car sales worldwide this year, driven by fuel price spikes linked to the conflict between the United States and Iran.
The International Energy Agency (IEA) projects global EV sales will reach 23 million units in 2026, representing almost 30% of all cars sold globally, according to its annual Global EV Outlook 2026 report.
Sales of EVs and plug-in hybrid electric vehicles rose 35% over the previous quarter and 4% year-over-year, with 50 countries recording quarterly sales records in the second quarter of 2026.
The surge follows a difficult start to the year, with global EV sales falling 8% in the first quarter of 2026 compared to the same period a year earlier, largely due to policy changes in China and the United States that reduced or phased out consumer incentives.
Oil prices spiking to $100 per barrel in March, driven by the Middle East conflict, proved to be a turning point that accelerated consumer interest in electric vehicles across nearly 90 countries.
Thirty of those countries recorded all-time monthly EV sales figures, underscoring how rapidly rising fuel costs are reshaping consumer purchasing decisions at a global level.
Regional growth figures were particularly striking outside of established markets, with Asia Pacific excluding China posting an 80% sales surge and Latin America recording a 75% jump between January and March compared to the prior year period.
Europe also posted strong numbers, with EV sales climbing close to 30% year-on-year, adding further momentum to the continent’s ongoing transition away from internal combustion engines.
At current oil price levels, EV drivers are enjoying fuel cost savings that are 35% higher compared to just a year ago, according to IEA data, making the financial case for switching increasingly difficult to ignore.
IEA Executive Director Fatih Birol stated that “the growing popularity of EVs has marked a major shift for car markets and the energy system as a whole — and it is providing some relief now amid the largest oil supply shock in history.”
Birol added that “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,” signaling continued structural tailwinds for the industry.
Looking further ahead, the IEA expects electric cars to account for half of all global vehicle sales by 2035, a milestone that would represent a fundamental transformation of the automotive sector worldwide.
