Electric vehicle (EV) sales are gaining momentum across global markets as high fuel prices encourage more drivers to switch from petrol and diesel cars. The International Energy Agency (IEA) expects electric cars to account for close to 30% of global new car sales in 2026, with total sales projected to reach around 23 million.
The global EV market started 2026 on a weaker note, with sales falling 8% year on year in the first quarter. The decline was mainly linked to lower sales in China and the United States following policy changes. However, several other markets continued to record strong growth. EV sales in Europe rose by almost 30%, while sales in Asia Pacific excluding China increased by 80%. Latin America also recorded a 75% rise in the first quarter.
Higher oil prices are now adding another reason for consumers to consider electric cars. EVs generally have lower running costs than conventional vehicles because they use energy more efficiently. The IEA says the recent rise in oil prices has increased the potential fuel savings for EV owners, particularly in markets where petrol costs are high.
China remains the world’s largest EV market and manufacturing hub. In 2025, electric cars accounted for almost 55% of new car sales there, while Chinese manufacturers supplied around 60% of EVs sold globally.
With growing demand, lower running costs and continued government support, electric vehicles are becoming an increasingly important part of the global automotive industry.