The IEA forecasts that electric vehicles will account for nearly 30% of global car sales by 2026.
The expansion of electric vehicles continues to accelerate globally, driven by the energy crisis, falling battery prices, and new sustainable mobility policies. According to the latest edition of the International Energy Agency’s (IEA) Global EV Outlook, electric car sales could reach 23 million units by 2026, representing nearly 30% of all vehicles sold worldwide.
During 2025, the market registered 20% growth, exceeding 20 million units sold. This progress meant that one in four new cars sold was electric, reinforcing a trend that continues to transform the automotive industry and the global energy system.
China maintains its leadership in production and exports
China continues to dominate the global electric vehicle supply chain; the country produced nearly three-quarters of the 22 million electric cars manufactured in 2025 and accounted for more than 80% of global battery cell production.
Similarly, Chinese exports of electric vehicles exceeded 2.5 million units last year. Growth in international demand allowed China to expand its presence in emerging markets in Asia, Africa, and Latin America—regions where the energy transition is gaining momentum in the face of volatile oil prices.
The IEA points out that outside of China, Europe and the United States, more than half of the electric vehicles sold came from Chinese manufacturers, a figure much higher than that recorded just five years ago.
Europe and Asia Pacific will drive growth in 2026
Although global electric vehicle sales fell by 8% in the first quarter of 2026 due to regulatory changes in China and the United States, other markets showed strong dynamism.
In Europe, sales increased by nearly 30% year-on-year, while in Asia Pacific, excluding China, they grew by 80%. Latin America also showed significant expansion with a 75% increase in electric vehicle sales.
The report notes that nearly 90 countries reported year-on-year growth in March 2026 and around 30 achieved record monthly sales, reflecting greater adoption of clean transport technologies.
The energy crisis is accelerating the transition to electric mobility
Volatility in energy markets and rising fuel prices continue to strengthen the economic appeal of electric vehicles. The IEA believes that lower operating costs and the gradual reduction in battery prices are improving the competitiveness of these models compared to combustion engine cars.
Fatih Birol, executive director of the IEA, stated that the growth of electric mobility is helping to alleviate the impact of the biggest oil supply shock ever recorded.
In addition to passenger cars, the electric truck market also showed significant growth in 2025. Global sales doubled compared to the previous year, and electric models accounted for almost 10% of trucks sold.
Southeast Asia emerges as a strategic market
Southeast Asia is emerging as one of the regions with the greatest potential for growth in electric mobility. Electric vehicle sales in the region are projected to double by 2025, reaching a market share of nearly 20%.
The IEA projects that this share could increase to 60% by 2035 if tax incentives and government support policies continue. Countries like Vietnam are already exploring new measures to accelerate the electrification of transport and reduce their dependence on fossil fuels.
Artificial intelligence and software redefine the automotive industry
The report also highlights the increasing integration of artificial intelligence and advanced software in the automotive sector. Manufacturers are incorporating new digital capabilities to optimize energy efficiency, improve connectivity, and expand driver assistance features.
The combination of electrification, automation, and digitalization is marking a new stage for the global automotive industry, as governments intensify their strategies to reduce emissions and strengthen energy security.
Source and photo: Iea.org