Global electric car sales rebounded strongly in the second quarter of 2026 despite a slowdown in the overall automotive market, prompting the International Energy Agency (IEA) to raise its outlook for electric vehicle (EV) adoption this year.
According to the IEA’s latest report, Electric Car Markets in a Time of Uncertainty, global car sales declined by around 5% year-on-year during the first half of 2026, weighed down by weaker demand in China and the United States amid economic pressures, fuel price volatility and changing policy environments. However, electric vehicle sales recovered sharply during the second quarter, rising 35% from the first quarter and reaching record quarterly levels across 50 countries.
The report highlighted robust EV sales growth in several markets, including Australia, Brazil, India, South Korea and Vietnam, where sales approximately doubled between March and June compared with the same period in 2025. More than 90 countries recorded year-on-year growth in electric vehicle sales during the first six months of 2026, supported by continued policy measures in Europe, Latin America and Southeast Asia.
Reflecting the stronger-than-expected performance, the IEA now expects electric cars to account for 29% of global passenger vehicle sales in 2026, one percentage point higher than its forecast published in the Global EV Outlook 2026 earlier this year.
The agency said the renewed momentum follows heightened fuel price volatility resulting from the energy crisis triggered by the conflict in the Middle East, reinforcing the role of electric vehicles in reducing dependence on oil. With road transport accounting for nearly half of global oil consumption, accelerating EV adoption could help improve energy security while reducing exposure to fuel supply disruptions.
Despite the improved global outlook, the IEA expects China’s electric vehicle market to remain broadly flat in 2026 compared with the previous year—the first annual stagnation this decade—even as EVs are projected to account for more than 60% of total car sales in the country. At the same time, Chinese manufacturers continue expanding overseas, with electric vehicle exports during the first half of 2026 nearly matching the total exports recorded throughout 2025.
According to the report, more than one million Chinese electric vehicles remain available for sale in international markets, a trend expected to intensify competition for established automakers, particularly in emerging economies where imports of Chinese EVs continue to grow. The IEA noted that with China and other emerging markets projected to account for around 60% of global vehicle demand over the next decade, manufacturers’ success in these regions will increasingly shape leadership in the global automotive industry.
