The latest report from the International Energy Agency forecasts that global electric vehicle sales will reach 23 million units in 2026, accounting for nearly 30 percent of new car sales. The report notes that the EV market is entering a new phase of accelerated growth.
In May 2026, global registrations of battery electric and plug-in hybrid vehicles reached about 1.8 million units, a year-on-year increase of 3 percent and the third consecutive month of growth. A report by S&P Global Mobility shows that in March and April this year, EV sales exceeded the same period last year in 91 percent of countries and regions worldwide, with 37 countries and regions hitting record monthly sales. Countries such as Australia and the UK set new records in March, while Brazil and eight others set records in April. Meanwhile, 28 countries and regions saw EV penetration surpass the 16 percent threshold, often considered a key tipping point for wider adoption.
By region, in the first quarter of 2026, EV sales in Europe grew nearly 30 percent year-on-year, in Asia-Pacific excluding China they grew 80 percent, and in Latin America they grew 75 percent. The IEA report also projects that for the full year, European sales will increase by 20 percent, Asia-Pacific outside China by over 50 percent, and Latin America by 45 percent.
Subsidy policies and persistently high fuel prices have spurred consumers to buy EVs earlier. Charles Lester, data manager at Benchmark Mineral Intelligence, said sales data reflect a clear shift in consumer behavior, with strong demand in some regions rapidly depleting inventories.
The rise of EVs is also displacing oil. The global EV stock in 2025 reduced oil demand by about 1.7 million barrels per day, a figure that could rise to about 5 million barrels per day by 2030. Electrification of transport is penetrating deeper: in 2025, electric trucks accounted for 9 percent of total truck sales, and that share is expected to exceed 20 percent by 2035. Moreover, EVs are integrating with artificial intelligence and new power electronics, accelerating their evolution into smart energy terminals.
Chinese EVs, with their complete industrial chain, smart features, and rapid delivery capability, are becoming a key force in stabilizing the global supply chain. Data from the China Association of Automobile Manufacturers show that from January to May this year, new energy vehicle exports reached 1.833 million units, a year-on-year surge of 110 percent. In Europe, Chinese EV sales accounted for over 15 percent of the market for the first time. A Cox Automotive survey found that nearly 40 percent of US drivers are very likely or likely to consider a Chinese-brand vehicle, a proportion that rises to 69 percent among Gen Z consumers.
Chinese automakers are actively expanding overseas. In Thailand, they are transforming the country into an EV manufacturing hub for Southeast Asia; in France, a joint venture factory between Xiamen Tungsten New Energy and Orano has broken ground. French Minister of Economy, Finance, and Industry Roland Lescure said the plant is a key part of battery R&D and innovation, demonstrating that France and other European countries can cooperate with China in a mutually beneficial way. Reuters also reported on the growing trend of Chinese automakers partnering with European firms to use idle production capacity.