Electric Cars Set to Account for Nearly 30% of Global Sales in 2026

Close to 30% of all cars sold globally in 2026 are expected to be electric as countries and consumers increasingly respond to energy market pressures and falling technology costs, according to the latest International Energy Agency (IEA) Global EV Outlook. 

The report projects that global electric car sales will reach 23 million in 2026, driven by strong market growth, policy support in several regions, and improving affordability of electric vehicles (EVs). 

This follows a year in which EV sales rose by 20% to surpass 20 million units, meaning electric cars accounted for roughly one in every four new vehicles sold worldwide. 

The IEA notes that electric vehicles are now on sale in nearly 100 countries, with about 40 countries already recording EV market shares of 10% or higher. 

China continues to dominate global production, supplying around 60% of electric cars sold worldwide, while European and North American manufacturers each account for approximately 15%. 

However, policy shifts in major markets led to volatility in early 2026. Global EV sales in the first quarter fell by 8% compared to the same period in 2025. This decline, however, masked strong regional growth. 

Europe recorded a nearly 30% increase in EV sales, the Asia-Pacific region excluding China grew by 80%, and Latin America saw a 75% rise. 

In March alone, nearly 90 countries reported year-on-year growth in electric car sales, with around 30 countries achieving record monthly sales. 

The report highlights that electric vehicles are becoming increasingly cost-competitive, particularly in markets affected by volatile fuel prices and energy insecurity. 

It projects that, even without new policy interventions, the global EV fleet (excluding two- and three-wheelers) could expand to as many as 510 million vehicles by 2035, up from about 80 million today. 

IEA Executive Director Fatih Birol said electric vehicles are reshaping global car markets and providing some relief during ongoing energy disruptions. He noted that falling battery prices and potential policy responses to current energy challenges are expected to further accelerate EV adoption. 

The report also finds strong growth in electric trucks, with global sales more than doubling in 2025, although most demand remains concentrated in China. Electric trucks now account for nearly one in ten global truck sales. 

The two- and three-wheeler segment continues to lead electrification in road transport. Southeast Asia is emerging as a key growth region, with EV sales more than doubling in the past year and market share approaching 20%. 

The IEA projects that this could rise to 60% by 2035, supported by favorable pricing and government incentives. Countries such as Viet Nam are expanding tax incentives as part of efforts to respond to energy market pressures. 

China remains the world’s largest EV manufacturing hub, producing nearly three-quarters of the 22 million electric cars made globally last year. Its exports have also surged, with more than 2.5 million electric cars shipped abroad as production continues to outpace domestic demand. 

China also dominates EV supply chains, accounting for over 80% of battery cell production and an even higher share of key battery materials. 

The report further highlights advances in automotive technology, particularly software and artificial intelligence, alongside updates to global EV data and policy tracking tools designed to help analyze market trends and policy developments worldwide.