The electric vehicle (EV) market is experiencing a surge in sales, despite a global slowdown and the ongoing energy crisis. According to the International Energy Agency (IEA), global EV sales are expected to hit 23 million in 2026, making up nearly 30% of all new cars sold worldwide. This comes after EV sales topped 20 million in 2025, up 20% year over year, with 1 in 4 new cars sold globally now electric. The IEA's Global EV Outlook report highlights the continued momentum in EV sales, despite the energy crisis tied to the war in the Middle East. In fact, rising fuel prices are making EVs even more attractive to buyers in many places.
However, the report also notes that global EV sales fell 8% in Q1 2026 compared to the same period last year, following policy changes in China and the US. But this headline number doesn't tell the full story. For example, China, the world's largest EV market, maintained its position with nearly 55% of new cars sold being electric in 2025. Europe's EV sales jumped nearly 30% year over year in Q1, and sales in the Asia Pacific region (excluding China) surged 80%.
The IEA projects that the global EV fleet could grow from nearly 80 million vehicles today to as many as 510 million by 2035, even without additional policy announcements. This growth is expected to be driven by the falls in battery prices and potential policy responses to the current global energy crisis. China continues to dominate global EV manufacturing, supplying 60% of EVs sold worldwide in 2025 and producing nearly 75% of the world's EVs last year. Chinese EV exports doubled to more than 2.5 million vehicles, with 55% of the world's EVs imported from China.
Southeast Asia is emerging as one of the fastest-growing EV markets, with sales more than doubling in 2025 and reaching close to a 20% market share. The IEA projects that EVs could make up 60% of new car sales in Southeast Asia by 2035, helped by lower prices and supportive policies. Electric truck sales more than doubled globally in 2025, with China leading the market. The IEA also highlights the importance of automotive software and AI trends in the EV market, with updated online tools tracking global EV data and policy developments.
In conclusion, the EV market is experiencing a surge in sales, despite challenges. China continues to dominate the market, but other regions are also growing rapidly. The IEA's projections suggest that the EV fleet could grow significantly in the coming years, driven by technological advancements and policy responses to the energy crisis. This trend has implications for the future of transportation and the global energy landscape.
