Nearly 30% of vehicles sold worldwide this year will be electric, with global EV sales expected to reach 23 million, the International Energy Agency said.
The International Energy Agency released a report on Wednesday, finding that global EV sales will exceed last year’s growth, when global EV sales rose by 20% and accounted for nearly a quarter of all new cars sold worldwide.
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The growth in EV sales comes as the war in Iran has disrupted and raised energy prices. Gas prices in the United States have soared nearly 50% since the war in Iran started in late February. The international benchmark Brent crude and the U.S. benchmark West Texas Intermediate crude has stood around $100 per barrel since the war started.
“EVs are increasingly cost-competitive in key markets, which could reinforce demand, including from consumers worried about volatile fuel prices,” IEA said.
In the first quarter, IEA said global EV sales dropped by 8% compared to the same period last year, due to policy changes in China and the U.S.
In China, officials reinstated a 5% purchase tax on EVs. While in the U.S., the Trump administration and Republican lawmakers have rolled back a number of measures supporting the EV market, including slashing tax credits and weakening emission standards.
However, despite the decline, sales remained strong in other regions. For instance, in Europe sales increased by 30% year-over-year, while Asia Pacific (excluding China) grew by 80% and Latin America by 75%.
In March 2026, IEA said that nearly 90 countries reported annual sales growth, with nearly 30 of the countries breaking monthly sales records.
“Electric car sales set new records in close to 100 countries last year. The growing popularity of EVs has marked a major shift for car markets and the energy system as a whole – and it is providing some relief now amid the largest oil supply shock in history,” said IEA Executive Director Fatih Birol.
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“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,” Birol said.
IEA noted that even without any new policy changes, EV sales will continue to grow, with the agency forecasting the global EV fleet will reach 510 million by 2035.
