Rising fuel prices and supply disruptions linked to the Middle East conflict helped drive global demand for electric vehicles (EVs) during the second quarter of 2026, according to the latest report from the International Energy Agency (IEA).
The agency said global electric car sales increased 4% year-on-year between April and June and surged 35% compared with the first quarter. However, first-half sales declined 1% from the same period last year, largely due to weakening demand in China, the world’s largest EV market.
The IEA reported that more than 90 countries recorded annual growth in EV sales during the first six months of the year. Nevertheless, an almost 20% decline in Chinese sales outweighed gains elsewhere, limiting overall global growth. China remains the dominant driver of worldwide battery material demand.
Outside China, several emerging markets delivered strong momentum. EV sales in Australia, Brazil, India, South Korea and Vietnam roughly doubled between March and June compared with the same period in 2025. Over the same period, total global vehicle sales—including petrol and diesel models—fell 5% amid weaker demand in China and the United States.
“Road vehicles account for nearly half of global oil use, leaving the sector particularly exposed to fuel price volatility and supply disruptions,” the IEA said.
Europe emerged as the strongest-performing major EV market in the first half of 2026, with sales rising 30% year-on-year. Germany sold an additional 140,000 electric vehicles compared with the same period last year, while the UK and France added around 100,000 and 95,000 units respectively.
Across the European Union, electric vehicles accounted for more than 30% of all new car sales in the first half of 2026, up from 27% a year earlier. In the UK, EVs represented 38% of total vehicle sales during the period.
Globally, electric cars made up 24% of all new vehicles sold in the first six months of 2026, an increase of one percentage point from the previous year. The IEA expects that share to climb to 29% by the end of 2026.
The agency said higher oil prices have strengthened the case for electric mobility, particularly in oil-importing countries seeking greater energy security and protection from fuel price swings. Escalating tensions between the United States and Iran, along with the closure of the Strait of Hormuz, have pushed crude oil and refined fuel prices higher this year.
Southeast Asia has been among the regions most affected by rising energy costs, prompting governments to introduce temporary EV tax incentives, vehicle scrappage schemes and fleet electrification programmes aimed at reducing oil dependence and cushioning future price shocks.
Consumer behaviour has also shifted in response to rising fuel costs. In Australia, for example, a roughly 34% increase in petrol prices earlier this year coincided with nearly triple the number of electric vehicle sales recorded in April compared with the same month last year.
Despite the positive momentum in many markets, the IEA expects China’s softer automotive market to continue weighing on global EV growth. For the first time this decade, electric vehicle sales in China are projected to remain flat year-on-year, even though EVs are expected to account for more than 60% of all new car sales in the country—its highest share on record.
The agency added that international demand still offers significant growth opportunities, noting that Chinese electric vehicle exports during the first half of 2026 nearly equalled the country’s total EV exports for all of 2025.
