- EV sales hit record highs in 50 countries in the second quarter of 2026.
- EV sales are expected to account for 29% of all new vehicle sales globally.
- A global energy crisis triggered by the Iran war is cited for the surge in demand.
Electric vehicle (EV) sales hit record highs in dozens of markets in the second quarter of 2026, according to a quarterly report from the International Energy Agency (IEA) released Friday.
After a down start to the year, EV sales rebounded in the second quarter as energy shortages and economic uncertainty attributable to the United States’ war in Iran provoked car shoppers to look away from volatile gas pump prices.
“The energy crisis sparked by the war in the Middle East brought fuel price volatility back into sharp focus,” the IEA report noted.
What Is the IEA?
Founded in the wake of the 1973 oil crisis, the IEA provides policy recommendations and data analysis on the global energy sector. It encompasses representatives from 32 Member countries and 14 Association countries, whose constituents combined are responsible for 80% of global energy consumption.
Where Are EV Sales Booming?
EV sales hit record levels in 50 countries, including Australia and India, which has nearly 1.5 billion people, making it the most populous country in the world. The IEA estimates that EV sales in the second quarter doubled in those markets as well as in Brazil, Korea, and Vietnam.
More than 90 countries reported EV sales growth from last year. The IEA attributed the growth to governmental policy support as well as the potential lower cost of ownership of an EV. Moreover, more automakers are introducing more EV models across a range of different body styles and price points.
These factors contribute to the IEA estimating that 29% of all new car sales will be electric vehicles in 2026.
The global growth of EVs offsets a slump in the world’s two largest car markets, China and the United States.
EV Sales in the U.S.
EV sales in the U.S. are following a somewhat similar growth pattern for 2026, but at a much smaller scale. EV sales accounted for only 5.8% of new car sales in the second quarter, according to Cox Automotive, parent company of Kelley Blue Book.
Yet EV sales ticked up more than 14% in the second quarter, even as more shoppers turned to hybrid vehicles during that time.
EV sales in the US hit a record in the third quarter of 2025, accounting for 10.6% of new cars sold. Shoppers scrambled to take advantage of the $7,500 federal EV tax credit that expired at the end of September 2025.
The Tesla Model Y and Model 3 account for more than half of all EV sales in the U.S., though other automakers continue to navigate volatile tariff policies as new EV models are introduced.
Toyota and Subaru combined to launch six new EV models in the past year, but other models such as the Toyota Highlander EV have been delayed. The Highlander EV will be made in Georgetown, Kentucky, and its battery will be sourced from North Carolina, thereby avoiding tariffs.
The hybrid Highlander is made in Indiana, and with hybrid sales surging, Toyota will delay the EV version until 2027.
EV Sales in China
China remains the focal point of EV economics. In China, EV sales are expected to reach a record 60% of new car sales in 2026. But for the first time in a decade, demand in the country is stagnating.
The country is flooding the global market with its surplus supply of relatively inexpensive EVs. The country exported nearly as many EVs in the first half of 2026 as in all of 2025, and the IEA estimates that one-third of those exports have not been sold. Along with unsold exports from prior months, that amounts to more than 1 million EVs for sale globally.
That should be good for the consumer when it comes to pricing, but that depends on the market and the tariffs. As ever, your mileage may vary.
