Electric vehicles (EVs) are set to dominate the global car market, despite a recent slowdown, according to the International Energy Agency (IEA). The IEA's Global EV Outlook report predicts that EV sales will reach 23 million in 2026, accounting for nearly 30% of all new car sales worldwide. This follows a 20% year-over-year increase in 2025, where one in four new cars sold were electric. The report highlights the resilience of EV sales during the ongoing energy crisis, with rising fuel prices making EVs even more attractive to buyers.
However, the IEA also notes that global EV sales dipped in the first quarter of 2026 due to policy changes in China and the US. Despite this, regional growth remains strong. China, the world's largest EV market, maintained its position with 55% of new car sales being electric in 2025. Europe's EV sales jumped 30% year-over-year in Q1, while the Asia Pacific region (excluding China) saw an 80% surge. Latin America also experienced a 75% increase.
The IEA projects a significant growth in the global EV fleet, from nearly 80 million vehicles today to a potential 510 million by 2035. This projection is based on the current momentum and the potential for further growth in battery prices and policy responses to the energy crisis. China's dominance in EV manufacturing and battery supply chain production is expected to continue, with Chinese automakers accounting for 60% of global EV sales in 2025.
Southeast Asia is emerging as a fast-growing EV market, with sales more than doubling in 2025 and reaching a 20% market share. The IEA predicts that EVs could make up 60% of new car sales in Southeast Asia by 2035, supported by lower prices and supportive policies. The report also highlights the growing market for electric trucks, with sales more than doubling globally in 2025, led by China.
In conclusion, the IEA's Global EV Outlook report underscores the ongoing and future dominance of EVs in the global car market. Despite a recent slowdown, regional growth remains strong, and the potential for further growth is significant. China's leadership in EV manufacturing and battery supply chain production is expected to continue, while Southeast Asia is emerging as a key growth market. The report also emphasizes the importance of automotive software and AI trends in the EV industry's future.
