EV sales set to hit 23 million in 2026 as nearly 1 in 3 new cars goes electric worldwide

Electric vehicles continue to gain ground around the world, even as the auto industry faces policy shifts and broader economic uncertainty.

What's happening?

According to Electrek, a new International Energy Agency outlook predicts 23 million EV sales this year, or almost 30% of new cars sold worldwide.

The IEA's latest Global EV Outlook comes after 2025 EV sales of more than 20 million, about one-quarter of new car sales worldwide, and a 20% increase from 2024.

The agency said EV demand is still advancing despite an energy crisis connected to the Iran war.

Electrek noted that global EV sales were down 8% in the first quarter of 2026 from a year earlier, with policy shifts in China and the United States driving much of the drop rather than a broad collapse in demand.

Still, many major markets are expanding rapidly.

China remained the largest EV market last year, with EVs accounting for about 13 million sales, or nearly 55% of new cars.

EV sales in the first quarter this year increased by almost 30% in Europe, 80% across Asia Pacific outside China, and 75% in Latin America.

Close to 90 countries recorded annual EV sales gains in March, and roughly 30 hit monthly records, Electrek reported. 

Why does it matter?

Rising gas prices are making EVs more attractive for many drivers.

Even when sticker prices remain a hurdle, electric models can help households spend less on fuel and maintenance over time, especially as battery prices continue to fall.

According to Electrek, the IEA projects the global EV fleet to rise from almost 80 million now to as many as 510 million by 2035, even if no new policies are announced.

That level of growth could reduce dependence on oil and cut tailpipe pollution in cities around the world.

At the same time, the report shows how concentrated the industry still is.

Chinese automakers manufactured 60% of EVs sold globally last year, with European and North American brands each manufacturing around 15%. China also made nearly three-quarters of the world's roughly 22 million EVs last year and accounted for over 80% of battery cell production, Electrek reported.

That concentration matters for pricing, competition, supply chains, and the speed at which more affordable EVs reach buyers in emerging markets.

What's being done?

Governments and manufacturers continue to drive market growth, particularly in regions where energy costs are rising.

The shift is not limited to passenger cars, either.

Electrek reported that global electric truck sales more than doubled in 2025, with China far ahead of other markets.

That broader scale could mean more options, better technology, and lower costs.

"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," IEA Executive Director Fatih Birol said.

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