BYD Denza Z9 GT makes its European debut (Source: BYD)
According to the International Energy Agency’s (IEA) new Global EV Outlook, electric car sales are expected to hit 23 million in 2026, making up nearly 30% of all new cars sold worldwide. That comes after EV sales topped 20 million in 2025, up 20% year over year, with 1 in 4 new cars sold globally now electric.
The IEA says global EV sales momentum is continuing despite the ongoing energy crisis tied to the war in the Middle East. And in many places, rising fuel prices are actually making EVs look even more attractive to buyers.
EV sales dipped early in 2026 but most regions are still growing
Global EV sales fell 8% in Q1 2026 compared to the same period last year, following policy changes in China and the US. But that headline number doesn’t tell the full story. For example, close to 55% of new cars sold in China – 13 million – were electric in 2025, maintaining its spot as the world’s largest EV market.
Europe’s EV sales jumped nearly 30% year over year in Q1. Sales in the Asia Pacific region excluding China surged 80%, while Latin America saw a 75% increase.
The IEA said nearly 90 countries posted year-over-year EV sales growth in March, and around 30 countries set monthly records.
The report projects the global EV fleet could grow from nearly 80 million vehicles today to as many as 510 million by 2035, even without additional policy announcements.
IEA Executive Director Fatih Birol said, “Looking ahead, the falls we have seen in battery prices and the potential policy responses to the current global energy crisis are set to provide further momentum in EV markets.”
China still dominates global EV manufacturing
Chinese automakers supplied 60% of EVs sold worldwide in 2025, according to the report. European and North American automakers each accounted for about 15%.
China also produced nearly 75% of the world’s roughly 22 million EVs last year. As domestic production outpaced local demand, Chinese EV exports doubled to more than 2.5 million vehicles.
Outside China, Europe, and the US, 55% of the world’s EVs were imported from China. Just five years ago, that figure was under 5%.
China also continues to dominate the EV battery supply chain, accounting for more than 80% of global battery cell production in 2025.
Southeast Asia (and electric trucks) are growing fast
The IEA said electric truck sales more than doubled globally in 2025, with China leading the market by a wide margin. Electric trucks accounted for nearly 1 in 10 trucks sold worldwide last year.
Southeast Asia is also emerging as one of the fastest-growing EV markets. EV sales in the region more than doubled in 2025, reaching close to a 20% market share.
The IEA projects that EVs could make up 60% of new car sales in Southeast Asia by 2035, helped by lower prices and supportive policies. Countries, including Vietnam, the region’s largest EV market, have already announced plans to expand EV tax incentives in response to the current energy crisis.
This year’s Global EV Outlook also includes a new section focused on automotive software and AI trends, along with updated online tools that track global EV data and policy developments.
Read more: IEA: Solar overtakes all energy sources in a major global first
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