Key facts
- Global EV sales rose 35% from Q1 to Q2 2026, driven by fuel price volatility from Middle East supply disruptions.
- H1 2026 global EV sales fell 1% year-on-year, primarily due to a nearly 20% drop in China's market.
- Sales in Australia, Brazil, India, South Korea, and Vietnam approximately doubled between March and June year-on-year.
- Europe saw robust EV growth, with sales up 30% year-on-year in H1 2026, representing over 30% of total car sales.
- EVs are forecast to account for 29% of global car sales in 2026, a 1 percentage point increase from the IEA's May projection.
- China's EV sales are projected to stagnate in 2026, even as EVs comprise over 60% of its total car sales.
Fuel price volatility, exacerbated by supply disruptions linked to the war in the Middle East, has bolstered electric vehicle (EV) demand globally in the second quarter of 2026, according to the International Energy Agency (IEA).
Global EV sales increased by 4% year-on-year in April-June and saw a 35% rise from the first quarter. However, for the first half of the year, sales fell by 1% year-on-year, primarily due to a significant slowdown in China, the world's largest EV market.
While over 90 countries reported higher EV sales year-on-year in the first half, this growth was insufficient to counteract an almost 20% decline in China. This downturn in China heavily impacted global sales volumes.
Outside of China, several markets demonstrated particularly strong growth. Electric car sales in Australia, Brazil, India, South Korea, and Vietnam approximately doubled between March and June compared to the same period last year. Overall global car sales, including internal combustion engine vehicles, decreased by 5% year-on-year, largely due to weaker sales in China and the US.
Europe recorded the most robust growth among major EV markets in January-June, with sales up 30% year-on-year. Germany sold 140,000 more electric cars, while the UK and France each sold around 100,000 and 95,000 more, respectively. Within the European Union, EV sales now constitute over 30% of total car sales, up from 27% in 2025, and the UK's share reached 38%.
Globally, EVs represented 24% of all cars sold in the first half of 2026, a 1 percentage point increase from the previous year. The IEA forecasts that EVs will account for 29% of total global car sales in 2026.
The IEA highlighted that EVs are a key policy response to elevated oil prices, enhancing energy security for oil-importing nations and shielding consumers from price fluctuations. The ongoing hostilities between the US and Iran, and the closure of the Strait of Hormuz, have driven up global crude and oil product prices.
Regions like Southeast Asia have been particularly affected, prompting governments to implement measures such as temporary EV tax breaks, scrappage schemes, and fleet electrification programs to reduce oil demand and mitigate future price shocks. For instance, Australia's approximately 34% surge in gasoline prices earlier this year coincided with a near-tripling of electric car sales in April 2026 year-on-year.
Despite the global growth, China's weaker car market is expected to temper overall EV sales this year. The IEA noted that for the first time this decade, China's electric car sales are projected to stagnate compared to the previous year, even as EVs are set to comprise over 60% of its total car sales, an all-time high. Nevertheless, the IEA sees potential for continued growth outside China, with electric car exports from China in the first half of 2026 nearly matching the total for all of 2025.