New data from the International Energy Agency (IEA) highlights a robust rebound in electric car sales during the second quarter of 2026, even as overall global vehicle sales declined. Between January and June, total light-vehicle sales dropped by about 5% year-on-year, driven by weaker demand in China and the United States amid economic headwinds and higher fuel costs.
However, electric car sales reversed their early-year downturn in Q2, climbing 35% compared with Q1 levels and setting quarterly records in more than 50 countries. Australia, Brazil, India, Korea and Vietnam each saw electric vehicle purchases roughly double between March and June over the same period in 2025. Overall, more than 90 markets recorded year-on-year growth in electric car sales during the first half of 2026.
This momentum, reinforced by continued or expanded policy incentives across Europe, Latin America and Southeast Asia, has lifted the IEA’s forecast for electric cars to capture 29% of global new-vehicle sales in 2026—one percentage point above projections made in May’s Global EV Outlook.
The IEA report notes that road transport accounts for nearly half of global oil consumption, exposing the sector to fuel-price volatility and supply risks. As governments and automakers respond to the ongoing energy crisis spurred by the conflict in the Middle East, electric vehicles are emerging as a key element in strategies to stabilize fuel demand and reduce import dependency.
Despite China’s overall car market softening—leading to an expected stagnation of the country’s electric car sales for the first time this decade—the share of EVs in China’s new‐vehicle registrations is set to exceed 60%, a record high. Meanwhile, Chinese exports of electric cars in the first half of 2026 almost matched the full-year total for 2025, leaving over one million vehicles yet to be sold in international markets.
Growing global EV competition, particularly from Chinese manufacturers, is poised to intensify market dynamics, especially in emerging economies that will account for an estimated 60% of global car demand over the next decade. Success in these fast-growing regions is expected to shape the future leadership of the automotive industry.
Source: International Energy Agency
