Global EV sales shook off a rough start to 2026 and came bounding back in Q2, jumping 35% from the first three months of the year and setting quarterly records in 50 countries.
EVs are also having a much better year than the wider car market. Global car sales fell around 5% year over year in the first half of 2026 as economic pressure, higher fuel prices, and policy changes dragged down demand in China and the US, according to new analysis from the International Energy Agency (IEA).
EV sales fell in the first quarter, largely because of weakness in those two giant markets. But elsewhere, buyers were busy plugging in.
EV growth is spreading fast
More than 90 countries recorded year-over-year EV sales growth during the first half of 2026. Australia, Brazil, India, Korea, and Vietnam were among the standouts, with sales from March through June roughly double those during the same period in 2025.
For clarity, the IEA’s “electric car” category includes both BEVs and PHEVs.
That strong growth outside China and the US, along with continued policy support in Europe, Latin America, and Southeast Asia, prompted the IEA to raise its 2026 outlook. EVs are now expected to make up 29% of all cars sold worldwide this year – one percentage point higher than the agency forecast in its Global EV Outlook 2026 released in May.
In China, however, the IEA expects EV sales to stagnate year over year for the first time this decade as its overall car market weakens. It’s important to note, however, that more than 60% of new cars sold in China this year are expected to be EVs – an all-time high.
The US has created its own policy-made problem. The Trump administration ended federal EV tax credits in September 2025 and weakened fuel-economy rules, removing two major incentives for carmakers and buyers to go electric. Unsurprisingly, US EV demand has fallen sharply.
China has 1 million+ EVs looking for buyers
China’s factories certainly haven’t slowed down. In the first six months of 2026, the country exported almost as many EVs as it did during all of 2025.
The IEA estimates that only around two-thirds of those EVs have been sold. Add in unsold exports from earlier months, and more than 1 million Chinese-made electric cars are now available for sale around the world.
The extra inventory could push global sales even higher, particularly in emerging markets where affordable Chinese models are already gaining ground. It’s also going to crank up the pressure on established automakers that are struggling to match Chinese brands on price.
China and other emerging economies are expected to account for around 60% of global car demand over the next decade. In other words, the automakers that win those markets are likely to lead the global auto industry.
Fossil fuel price volatility boosts EVs
The Middle East war and the resulting energy crisis have shoved fuel costs and supply security back into the spotlight.
Road vehicles consume nearly half of the world’s oil, leaving drivers and national economies highly exposed to price spikes and supply disruptions. That’s especially true for countries that rely heavily on oil imports from the Middle East.
Top comment by Jilles van Gurp
The Chinese are ramping up an impressive global distribution network for their EVs. There are a lot of markets where EV adoption was very low that are now importing lots of cheap Chinese EVs. This could start adding up to a lot of cars world wide.
It's also something that really hurts the traditional car makers that have been serving that market for a long time. Another effect is that a lot of those markets were importing used cars from richer countries as well. Those need expensive fuel and maintenance to keep on driving. And they compete with relatively affordable vehicles that China is mass producing that only need some cheap electricity. Demand for second hand ICE vehicles going down would depress the value of such vehicles. And that would have an impact on vehicle depreciation in other countries.
Another thing that is relevant here is that the amount of miles cars drive is typically higher for newer vehicles. EVs are going to dominate road traffic long before the last ICE vehicles are taken to the scrap heap in a few decades. Those scrambling to buy EVs now are those hit the hardest by higher fuel prices: people that drive a lot.
The IEA says government and auto industry responses to the crisis could give EV sales another boost. Whether that happens will depend heavily on policy choices. Countries can help drivers move away from volatile oil prices, or they can follow the US and pull support just as the rest of the global EV market accelerates.
Read more: US EV fast charging has entered ‘Charging 2.0’ – here’s what that means
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