Overview
- The IEA reported Thursday that global electric car sales jumped 35% in the second quarter versus the first quarter and set quarterly records in 50 countries.
- The agency now expects electric cars to make up about 29% of global new car sales in 2026 with roughly 10% year‑over‑year growth, using a definition that includes battery EVs and plug‑in hybrids.
- China exported nearly as many EVs in the first half of 2026 as it did in all of 2025, leaving an estimated more than 1 million Chinese‑made electric cars available for sale worldwide.
- Policy differences are shifting demand: the U.S. ended federal EV tax credits in September 2025 and loosened fuel‑economy rules, which analysts link to weaker U.S. EV sales while Europe, Latin America and Southeast Asia maintain support.
- Higher fuel costs from the Middle East war are making EVs more attractive to drivers and could prompt automakers to localize production, intensify price competition from Chinese brands, and spur new trade measures.