EV sales surge to record highs as energy crisis accelerates shift from petrol cars

Global electric vehicle sales are on course to reach 23 million units in 2026, accounting for nearly 30 percent of all cars sold worldwide, as soaring fuel prices and the ongoing global energy crisis accelerate the transition away from petrol-powered vehicles, according to the International Energy Agency (IEA).

The projection, contained in the IEA’s 2026 Global EV Outlook released on Wednesday, signals a major structural shift in the global automobile industry and energy markets, with electric vehicles increasingly becoming a mainstream option across both advanced and emerging economies.

The report showed that global electric car sales rose by 20 percent in 2025 to exceed 20 million units, meaning one in every four new cars sold worldwide last year was electric. Nearly 100 countries recorded new EV sales records in 2025, while around 40 countries achieved electric vehicle market shares of at least 10 percent.

The agency said the momentum is being driven by falling battery prices, improving affordability, supportive government policies and rising concerns over volatile oil prices following the conflict in the Middle East.

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“Electric car sales set new records in close to 100 countries last year,” said Fatih Birol, executive director of the IEA. “The growing popularity of EVs has marked a major shift for car markets and the energy system as a whole – and it is providing some relief now amid the largest oil supply shock in history.”

The report comes at a time when crude oil markets remain highly volatile due to geopolitical tensions in the Middle East, forcing governments and consumers to reconsider dependence on fossil fuels.

Analysts said the trend could have long-term implications for oil-exporting economies such as Nigeria, where petroleum revenues remain central to public finances and foreign exchange earnings.

Despite an overall 8 percent decline in global EV sales during the first quarter of 2026 following policy changes in China and the United States, many regions continued to record robust growth. Europe posted nearly 30 percent growth in EV sales, while Asia-Pacific markets excluding China surged by 80 percent. Latin America also recorded a 75 percent increase.

The IEA said nearly 90 countries recorded year-on-year EV sales growth in March 2026 alone, with about 30 countries posting record monthly sales figures.

China retained its dominance in the global EV ecosystem, producing nearly three-quarters of the world’s 22 million electric cars manufactured in 2025. Chinese automakers accounted for 60 percent of global EV sales and exported over 2.5 million units last year, more than double previous levels.

The report noted that outside the three biggest EV markets, China, Europe and the US, about 55 percent of electric cars sold globally were imported from China, highlighting Beijing’s growing influence over the clean mobility supply chain.

China also controls more than 80 percent of global battery cell production and dominates the processing of key battery materials, strengthening its strategic position in the global energy transition.

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The IEA further projected that the global EV fleet could expand from nearly 80 million vehicles today to as many as 510 million by 2035, even without additional policy support.

Southeast Asia emerged as one of the fastest-growing EV regions globally. Electric car sales in the region more than doubled in 2025, giving EVs a market share of almost 20 percent. The IEA said the figure could jump to 60 percent by 2035 as governments intensify incentives and investments in clean transportation infrastructure.

The report also showed rising adoption of electric trucks and two- and three-wheelers. Global electric truck sales more than doubled in 2025, with electric models accounting for nearly one in every 10 trucks sold worldwide. China remained the dominant market for electric trucks.

Industry experts said the accelerating EV transition could reshape global oil demand over the next decade, placing additional pressure on crude-dependent economies to diversify revenue sources and invest in cleaner energy technologies.

For African countries including Nigeria, the transition presents both risks and opportunities. While weakening long-term oil demand could threaten export earnings, rising interest in electric mobility may also open new opportunities in battery minerals, renewable energy infrastructure and local manufacturing.

The IEA report also highlighted growing technological integration in the automotive industry, including the use of software and artificial intelligence in vehicle systems and charging infrastructure.