Global EV
Outlook 2026
Growing sales amid an energy crisis
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Global EV Outlook 2026 Abstract
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Abstract
The Global EV Outlook is an annual publication that identifies and assesses recent
developments in electric mobility across the globe.
Combining analysis of historical data with projections, the report examines key
areas of interest, such as the deployment of electric vehicles and charging
infrastructure, battery demand, and key policy developments in major and
emerging markets. It also considers the implications of growing EV adoption for
electricity and oil consumption, as well as greenhouse gas emissions.
Amid the ongoing energy crisis sparked by the conflict in the Middle East, this
edition includes early monthly data for 2026 and considers potential implications
of the crisis for policy and market development. It also includes analysis of the
affordability of electric cars and the manufacturing and trade of electric cars, trucks
and their batteries, along with a special chapter on automotive technology trends
related to software and artificial intelligence.
The report is complemented by updated versions of two online tools: the Global
EV Data Explorer – which now includes vehicle price data in selected markets –
and the Global EV Policy Explorer. These tools allow users to interactively explore
EV statistics, projections and policy measures worldwide.
The report is developed with the support of members of the Electric Vehicles
Initiative (EVI); the United Nations Environment Programme also supported the
expansion of this year’s Policy Explorer.
Global EV Outlook 2026 Acknowledgements
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Acknowledgements, contributors
and credits
The Global EV Outlook 2026 was prepared by the Energy Technology Policy
(ETP) Division of the Directorate of Sustainability, Technology and Outlooks
(STO) of the International Energy Agency (IEA). The project was designed and
directed by Timur Gül, Chief Energy Technology Officer. Araceli Fernandez Pales,
Head of the Technology Innovation Unit, provided strategic guidance throughout
the development of the project. Elizabeth Connelly co-ordinated the analysis and
production of the report.
The principal IEA authors were (in alphabetical order): Oskaras Alšauskas,
Giovanni Andrean, Jannik Braun, Joseph Donovan, Hannes Gauch, Mathilde
Huismans, YuJin Jeong, Teo Lombardo, Vera O’Riordan, Apostolos Petropoulos
and Jules Sery. Leonardo Paoli contributed to the uncertainty analysis related to
the energy crisis. Caroline Robert contributed to the analysis of financial
implications of delays in the construction and opening of electric vehicle charging
stations. Leonardo Collina contributed to the analysis of the implications of the EU
Automotive Package proposal on “low-carbon” steel demand. Michael Drtil
contributed to the analysis on grid upgrade costs. Ottavia Valentini contributed to
the analysis of regulatory and market readiness for operationalising vehicle-to-grid
capabilities. Eric Buisson and Shobhan Dhir contributed to the analysis on mining
needs and critical mineral availability for electric vehicle demand. Celeste del
Vecchio, Tiffanie Laborie-Bousquet, Rebecca McKimm, Keishi Takada and Ivo
Walinga contributed to the research on EV supportive policies and automaker
electrification plans. Alexandre Gouy, Axel Norden Fürdös, Julien Radet and
Andrew Ruttinger provided targeted support to the project.
Valuable insights and feedback were provided by senior management and other
colleagues from across IEA, including Laura Cozzi, Tim Gould, Dan Dorner, Toril
Bosoni, Dennis Hesseling, Brian Motherway, Alessandro Blasi, Thomas Spencer,
Stéphanie Bouckaert, Hugh Hopewell, Shobhan Dhir, Shane McDonagh, Anthony
Vautrin and Jacques Warichet. Per-Anders Widell, Charlotte Bracke and
Bérengère Merlo provided essential support throughout the process. Olivia
Napper supported figure design. Lizzie Sayer edited the manuscript.
Special thanks go to Prof. Andreas Ulbig and his team at RWTH Aachen University
(Andreas Bong and Julian Bigalke) for their analytical input on the flexibility
potential of different grid-connected technologies.
Global EV Outlook 2026 Acknowledgements
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Thanks go to the IEA’s Communications and Digital Office, particularly to to Jethro
Mullen, Lee Bailey, Isabella Batten, Curtis Brainard, Poeli Bojorquez, Gaelle
Bruneau, Jon Custer, Astrid Dumond, Merve Erdil, Grace Gordon, Julia Horowitz,
Oliver Joy, Isabelle Nonain-Semelin, Andrea Pronzati, Robert Stone, Sam Tarling,
Clara Vallois, Lucile Wall, Wonjik Yang.
The work could not have been achieved without the financial support provided by
the governments of Canada, Japan, the Netherlands and Sweden (as part of their
contribution to the CEM Electric Vehicles Initiative) and the funds received through
the Global E-Mobility Programme funded by the Global Environment Facility
(GEF).
The report benefited from the high-calibre data and support provided by the
following colleagues: Somayyah Alyammahi (Ministry of Energy and
Infrastructure, United Arab Emirates); Jón Ásgeir Haukdal Þorvaldsson (Icelandic
Environment and Energy Agency); Adrian Bereda (Ministry of Climate and
Environment, Poland); Abdul Hakim Bin Ab Rahim (Malaysian Green Technology
Climate Change Corporation); Klaas Burgdorf (Swedish Energy Agency);
Georgina Campbell (Energy Efficiency & Conservation Authority, New Zealand);
Luca Castiglioni (Swiss Federal Office of Energy); Isabel del Olmo Flórez (Institute
for Diversification and Saving of Energy, Spain); Theresa Faustino (Bureau of
Policy Research and Innovation, Philippines); Sigurður Friðleifsson (Icelandic
Environment and Energy Agency); Camille Gautier (Ministry of Ecological
Transition, France); Roger Lee (Department of Climate Change, Energy, the
Environment and Water, Australia); Letícia Lorentz (Energy Research Company,
Brazil); Karl Lyndon Pacolor (Bureau of Policy Research and Innovation,
Philippines); Nabil Mneimne (United Nations Development Programme); Edwin
Oswaldo Alvarado Mancía (General Directorate of Energy, Hydrocarbons and
Mines, El Salvador); Marko Paakkinen (VTT Technical Research Centre of
Finland); Hiten Parmar (The Electric Mission, South Africa); Nissa Paul-Alexander
(Department of Sustainable Development, Saint Lucia); Xiaorong Qiao (Transport
Canada); Sophie Rammerstorfer (AustriaTech); Toke Rueskov Madsen (Danish
Energy Agency); Daniela Rodríguez Celis (Ministry of Energy, Chile); Daniel
Thorsell (Norwegian Public Roads Administration); Julio Vassallo (Ministry of
Environment and Sustainable Development, Argentina); Britt Woltermann
(Netherlands Enterprise Agency); Arisa Yonezawa (Ministry of Economy, Trade
and Industry, Japan); Joann Zhou (Argonne National Laboratory, United States).
The following peer reviewers provided essential feedback to improve the quality
of the report: Sam Adham (CRU); Ali Adim (S&P Global Mobility); Appurva Appan
and Juan Camilo Ramírez Arjona (Ricardo AEA); Keonwoo Bae (Hyundai); Edgar
Barassa (Barassa & Cruz Consulting); Harmeet Bawa (Hitachi Energy); Georg
Bieker (International Council on Clean Transportation); Tomoko Blech
(CHAdeMO); Giorgios Bonias (Shell); Johan Bracht (McKinsey); Baerte de Brey
Global EV Outlook 2026 Acknowledgements
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(Elaad); Luca Castiglioni (Federal Energy Office, Switzerland); Richard de Caux
(BP); Pierpaolo Cazzola (University of California, Davis); Michael Clarke (eTrucker
App); François Cuenot (UNECE); Ilka von Dalwigk (Recharge); Polash Das
(United Nations Environment Programme); Laurent Demilie (Ministry of Transport,
Belgium); Albert Dessi (Department of Climate Change, Energy, the Environment
and Water, Australia); Michael Dwyer (US Energy Information Administration);
Bert Fabian (ADB); Tom Fairlie (Cobalt Institute); Hiroyuki Fukui (Toyota); Lewis
Fulton (UC Davis); Sebastian Galarza (Center for Sustainable Mobility); Camille
Gautier (Ministry of Ecological Transition, France); Yoann Gimbert (Transport &
Environment); Victoria Guimier (TotalEnergies); Johnathan Harris (Exxon Mobil);
Aaron Hoskin (Transport Canada); Anders Hove (Oxford Institute for Energy
Studies); Antonio Iliceto (Terna Rete Italia); Patrick Jochem (German Aerospace
Center); Rachmat Kaimuddin (Coordinating Ministry of Infrastructure and Regional
Development, Indonesia); Tarek Keskes (World Bank); Neil King (EV Volumes);
Akiko Kishiue (World Bank); Alex Koerner (UNEP); Andreas Kopf (International
Transport Forum); Bahtiyar Kurt (UNDP); Yossapong Laoonual (King Mongkut's
University of Technology Thonburi (KMUTT)); Francisco Laveron (Iberdrola);
Yangchao Li (World Bank); Pieter Looijestijn (Ministry of Infrastructure and Water
Management, the Netherlands); Leticia Lorentz (EPE Brazil); Wang Lü (China
Automotive Technology and Research Center (CATARC)); Owen MacDonnell
(CALSTART); Vittorio Manente (Aramco Europe); Hans Eric Mellin (Circular
Energy Storage); Nabil Mneimne (UNDP, Lebanon); Gian Montoya (Empresas
Públicas de Medellín); Matteo Muratori (Pacific Northwest National Laboratory);
Rachael Nealer (Atlas Public Policy); Bessie Noll (ETH Zürich); Motoko Ogawa
(Ministry of Economy, Trade and Industry, Japan); Mario Ortiz (independent);
Sara Pasquier (Fastned); Marco Piffaretti (EV TCP Task 53); Karl Piskorek
(BMW); Robert Price (EV Volumes); Cristian Prokop (BASF); Davide Puglielli
(Enel); Abdelilah Rochd (IRESEN Morocco); Urs Ruth (Bosch); Emanuela Sartori
(Enel X); Sacha Scheffer (Independent); Wülf-Peter Schmidt (Independent);
Elisabeth Schrefl (Department of Climate Change, Energy, the Environment and
Water, Australia); Arjit Sen (ICCT); Urska Skrt (WBCSD); Joseph Teja
(CALSTART); Jacob Teter (independent); Levi Tillemann (S&P Global); Lyle
Trytten (independent); Ulderico Ulissi (ZERO Institute – University of Oxford);
Francesco Vellucci (ENEA); Sheila Watson (FIA Foundation); Israel Woldemariam
Biramo (World Bank); Amber Woodward (Centre for Net Zero); Nodir
Xudayberdiyev (Ministry of Transport, Uzbekistan); Lulu Xue (WRI); Arisa
Yonezawa (Ministry of Economy, Trade and Industry, Japan); Yubo Zhai
(NewLink); Uwe Zimmer (Infineum); Liu ZiYu (CATL).
Global EV Outlook 2026 Table of contents
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Table of contents
Electric Vehicles Initiative ...................................................................................................... 9
Executive summary .............................................................................................................. 10
Chapter 1. Trends in electric car markets .......................................................................... 16
Electric car sales ................................................................................................................. 16
Model availability and range ................................................................................................ 32
2026 sales trends ................................................................................................................ 41
Chapter 2. Trends in electric car prices .............................................................................. 48
New electric car prices ........................................................................................................ 48
Resale value of used electric cars ....................................................................................... 59
Government support for electric car sales ........................................................................... 63
Chapter 3. Trends in other light-duty electric vehicles ..................................................... 69
Electric two- and three-wheelers ......................................................................................... 69
Electric light commercial vehicles ........................................................................................ 73
Chapter 4. Trends in heavy-duty electric vehicles ............................................................. 77
Trends in electric bus sales ................................................................................................. 77
Trends in electric truck sales ............................................................................................... 79
Electric heavy-duty model availability .................................................................................. 87
Chapter 5. Trends in electric vehicle batteries .................................................................. 92
Electric vehicle battery deployment ..................................................................................... 92
Battery industry trends ........................................................................................................ 93
Emerging battery chemistry and designs .......................................................................... 100
Chapter 6. Trends in electric vehicle charging ................................................................ 104
Light-duty electric vehicle charger deployment.................................................................. 104
Heavy-duty vehicle charger deployment ........................................................................... 117
Alternative charging solutions ........................................................................................... 122
Chapter 7. Trends in manufacturing and trade ................................................................ 129
Manufacturing and trade of electric cars ........................................................................... 129
Manufacturing and trade of electric trucks ......................................................................... 139
Battery manufacturing and trade ....................................................................................... 143
Electric vehicle supply equipment manufacturing .............................................................. 151
Chapter 8. Technology trends ........................................................................................... 157
Overview ........................................................................................................................... 157
Vehicle software and software-defined vehicles ................................................................ 159
Autonomous vehicles ........................................................................................................ 163
Global EV Outlook 2026 Table of contents
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Artificial intelligence and EVs ............................................................................................ 169
Security considerations for connected and autonomous vehicles ..................................... 171
Ultra-fast charging batteries .............................................................................................. 173
Vehicle-to-grid technology ................................................................................................. 176
Chapter 9. EV and battery outlook .................................................................................... 190
Scenario overview ............................................................................................................. 190
Vehicle outlook by mode ................................................................................................... 191
Vehicle outlook by region .................................................................................................. 195
Carmaker electrification announcements .......................................................................... 214
EV battery demand outlook ............................................................................................... 220
Battery recycling ................................................................................................................ 223
Special focus: Manufacturing and trade outlook for electric cars and batteries ................. 228
Chapter 10. Charging outlook............................................................................................ 237
Projecting charging needs ................................................................................................. 237
Light-duty vehicle charging ................................................................................................ 237
Heavy-duty vehicle charging ............................................................................................. 245
Charging investments ........................................................................................................ 248
Chapter 11. Implications of the EV outlook ...................................................................... 257
Implications for the energy system .................................................................................... 257
Electricity demand ............................................................................................................. 257
Oil displacement ................................................................................................................ 259
Fuel tax revenue implications ............................................................................................ 260
Emissions impacts ............................................................................................................. 262
Annexes ............................................................................................................................... 267
Annex A: Oil displacement from electric vehicles .............................................................. 267
Annex B: Definition of car size segment ............................................................................ 270
Annex C: Battery-related assumptions and methodological notes .................................... 271
Annex D: Total cost of ownership analysis for trucks ........................................................ 274
Annex E: Costs and financial assumptions for home charging and gasoline refuelling ..... 277
Annex F: Battery swapping station assumptions ............................................................... 282
Annex G: Automaker electrification targets ....................................................................... 284
Annex H: Estimating flexibility potentials for V2G .............................................................. 287
Annex I: Glossary .............................................................................................................. 288
Global EV Outlook 2026 Electric Vehicles Initiative
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Electric Vehicles Initiative
The Electric Vehicles Initiative (EVI) is a multi-governmental policy forum
established in 2010 under the Clean Energy Ministerial (CEM). Recognising the
opportunities offered by EVs, the EVI is dedicated to accelerating the adoption of
EVs worldwide. To do so, it strives to better understand the policy challenges
related to electric mobility, to help governments address them and to serve as a
platform for knowledge-sharing among government policy makers. The EVI also
facilitates exchanges between government policy makers and a variety of other
partners on topics important for the transition to electric mobility, such as charging
infrastructure and grid integration as well as EV battery supply chains.
The International Energy Agency serves as the co-ordinator of the initiative.
Governments that have been active in the EVI in the 2025-26 period include
Canada, People’s Republic of China (hereafter “China”), Finland, France,
Germany, India, Japan, the Netherlands, New Zealand, Norway, Poland, Portugal,
Sweden, United Kingdom and United States.
The Global EV Outlook annual series is the flagship publication of the EVI. It is
dedicated to tracking and monitoring the progress of electric mobility worldwide
and to informing policy makers on how to best accelerate electrification of the road
transport sector.
Global EV Outlook 2026 Executive summary
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Executive summary
After another record year for EV sales, attention is
turning to the impacts of the energy crisis for global car
markets
Electric car sales grew by 20% globally to exceed 20 million in 2025, meaning
one-quarter of all new cars sold were electric. Europe saw the strongest growth
among major electric vehicle (EV) markets, with electric car sales rising by more
than 30% to reach 28% of total sales, following an increase in the stringency of
the European Union’s CO2 standards for cars. China’s growth in electric car sales
slowed slightly, in part due to a temporary halt to its trade-in scheme, but EVs still
accounted for nearly 55% of all car sales. In the United States, electric car sales
remained relatively stable at just under 10% of car sales, though the end of EV tax
credits coincided with a drop in sales at the end of the year. Meanwhile, some
emerging markets saw steep increases in electric car sales. In Southeast Asia,
annual sales more than doubled to reach a sales share of nearly 20%, led by Viet
Nam, Indonesia and Thailand. In Latin America, sales grew by 75%, led by Brazil
and Mexico. More than 100 countries recorded electric car sales growth in 2025,
and in one-third of these, they represented at least 10% of new car sales. Chinese
automakers supplied 60% of global electric car sales in 2025, while European and
North American automakers were each responsible for about 15% of global sales.
The ongoing energy crisis resulting from the conflict in the Middle East has
brought reliance on oil imports into sharp focus in many countries. The road
transport sector represents close to half of oil demand today, and policy responses
to the long tail of the current crisis stand to shape the global car market for years
to come. The oil crisis of the 1970s prompted the introduction of fuel efficiency
standards, which resulted in close to a doubling of the fuel economy of
conventional cars between 1975 and today, while during the Covid-19 pandemic,
many countries introduced EV subsidies to boost uptake and support a broader
economic recovery. In 2025, the global fleet of EVs avoided the consumption of
around million barrels of oil per day (mb/d), primarily in countries that have
implemented fuel economy and CO2 standards, such as China and the
European Union. Some countries in Southeast Asia – including Viet Nam, the
largest EV market in the region – have already announced plans to expand or
extend EV tax incentives as part of their response to the current energy crisis.
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Electric cars are poised to make up a greater share of
total car sales in 2026
The current high oil price environment is drawing consumer attention to the
economic benefits of driving EVs. Electric cars generally have lower running
costs than internal combustion engine (ICE) vehicles, mainly due to their higher
efficiency. The recent rise in oil prices resulting from the conflict in the Middle East
has further increased the cost savings associated with driving an EV. For example,
based on average oil prices in April, the annual fuel cost savings associated with
driving an EV in the European Union grew 35% compared to 2025 savings. For
corporate fleets that travel long distances, the running cost savings can be several
times larger than for the general consumer. Preliminary signs suggest EV sales
are increasing in countries with supply concerns, or where fuel price increases
have been particularly steep. However, the full implications of the current crisis
will take time to register in the car market, due in part to the lag between vehicle
orders and deliveries. For consumers in emerging economies with low rates of
motorisation and high sensitivity to fuel prices, electric two- and three-wheelers
look to be an attractive option – sales more than doubled year-on-year in the first
quarter of 2026 in Southeast Asia, and grew more than 30% in India.
Electric car sales broke records in a number of markets during the first
quarter of 2026. Global sales, at around million, were 8% lower than over the
same period last year, primarily because of lower sales in China and the
United States following key policy changes. However, this overall decline masks
strong sales growth in many countries: in Europe, sales were up close to 30%
year-on-year; countries in Asia Pacific excluding China saw year-on-year sales
growth of 80%, and sales across Latin America were up by 75%. In March 2026,
around 30 countries saw record-breaking monthly sales, and a further 60 countries
recorded year-on-year sales growth. Preliminary April data shows that monthly
electric car sales in China grew to a record high of over 60% of total car sales,
even if year-to-date electric car sales remained lower than in 2025.
Global electric car sales are expected to grow to 23 million in 2026,
representing 28% of total car sales. Europe is poised for the largest growth
among major markets, with sales projected to increase by around 20% in 2026,
such that one in three cars sold are electric. In China, electric car sales are set to
grow across 2026, albeit at a slower rate than in previous years, to reach almost
60% of total car sales. Sales across Asia Pacific countries other than China are
expected to grow by over 50%, while sales in Latin America are projected to rise
by 45%. The wider economic impacts of the conflict in the Middle East might
temper overall car sales. In many regions, however, there is upside potential to
the 2026 EV forecast depending, in part, on how, when and which policies are
enacted amid the current energy crisis.
Global EV Outlook 2026 Executive summary
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Policies and affordability will continue to shape the EV
outlook in key markets
Even without any new policy announcements, the global fleet of EVs is
projected to grow more than sixfold by 2035 from 2025 levels, to reach as
many as 510 million, without counting electric two- or three-wheelers. The
increasing cost-competitiveness of EVs, along with tighter CO2 and fuel economy
standards, are poised to drive market growth, pushing up the share of EVs in
global car sales to around 50% in 2035 in the IEA’s exploratory By
contrast, the share of ICE cars continues to shrink in all scenarios, and sales never
return to their 2017 peak. In China, 70% of battery electric cars sold in 2025 were
already cheaper than the average conventional car; in China’s small car segment,
electric cars have already largely displaced sales of conventional cars. This price
dynamic helps to push electric cars to exceed 90% of total car sales in China in
2035. In Europe, CO2 standards continue to drive sales of electric cars; in 2025,
car manufacturers adjusted their pricing strategies and introduced more affordable
EV models to comply with the new emissions targets. Enacting the proposed
Automotive Package in the European Union would reduce the 2035 outlook
nonetheless, but the sales share of electric cars still exceeds 90%.
Policies and price dynamics are poised to drive EV sales in particular in
Southeast Asia, where the share of electric car sales is projected to increase
by up to three times by 2035. Imports of affordable electric cars from China have
brought down prices and driven up EV sales in many emerging markets in recent
years. For example, in Thailand, electric car prices have been on par with those
of ICE cars for the past 2 years. In Indonesia, the average price premium for
electric cars declined from over 50% in 2024 to around 40% in 2025. Some
countries are looking to tighten import rules to support the development of
domestic manufacturing, which may affect affordability in the future. Viet Nam is
the only country in the region that has a sizeable domestic EV manufacturer
offering EVs at prices comparable to those of ICE cars. As a result, Viet Nam could
reach an electric car sales share of over 80%, the highest of any Southeast Asian
country in 2035.
For countries that rely on imports to meet oil demand, the energy security
benefits of rising EV uptake could shape future policy choices. China – the
world’s largest oil importer – is also home to the largest stock of EVs, which
displaced around 1 mb/d of oil demand in 2025 and is set to displace mb/d
annually by 2030. Globally, the annual displacement of oil by EVs is on track to
1 The IEA exploratory scenarios used in the Global EV Outlook 2026 are the Current Policies Scenario and the Stated Policies
Scenario, which are based on a set of starting conditions.
Global EV Outlook 2026 Executive summary
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triple to around 5 mb/d per day in 2030. Growing deployment of electric trucks –
the second-largest oil consuming transport mode – avoids the consumption of
1 mb/d in 2035 based on current policies.
The electrification of road transport continues apace,
driven by a sharp increase in electric truck sales in
China
Electric truck sales more than doubled in 2025 compared with 2024,
reaching 9% of all truck sales worldwide. The vast majority of this growth came
from China, where sales doubled for the second consecutive year in 2025; one in
four trucks sold in China was electric. Electric truck sales also grew in Europe and
North America, albeit at a much lower level. Electric trucks remain two to three
times more expensive to purchase than diesel trucks, but the total cost of
ownership (TCO) is already competitive in China thanks to falling battery prices
and is coming down in other markets. In Europe, the TCO of electric trucks is
expected to reach parity with that of diesel trucks by 2030. To enable electric long-
distance trucking, the European Union now has over 1 000 charging points
exclusively for electric trucks. Based on current policies, electric trucks are set to
constitute at least 20% of global truck sales in 2035, led by sales in China, where
they reach a 60% sales share.
New electric truck producers from the machinery and heavy industry
sectors are gaining market share in the growing Chinese market. In 2025,
almost 30% of the Chinese electric truck market was captured by new market
entrants that do not have conventional models in their line-ups. Electric truck sales
in China are almost exclusively from Chinese manufacturers with Chinese
batteries (with CATL supplying 80% of the total) and truck chassis, reflecting the
country’s highly integrated ecosystem and strong local supplier network.
The most electrified road transport segment of all – two- and three-wheelers
– continued to grow in 2025. While sales in China and India, the world’s largest
two-wheeler markets, grew only slightly in 2025 to a total of million, sales
doubled in Viet Nam, underpinning global growth. Sales also grew markedly in
Africa to reach about 70 000 two-wheelers in 2025 – over 80 times more than at
the start of the decade. The sales share of electric three-wheelers stood at over
25%, continuing to increase even as the overall three-wheeler market contracted.
Trade plays an important role in the EV industry
China remains the world’s largest EV manufacturing hub, accounting for
nearly 75% of electric cars produced in 2025. Almost 22 million electric cars
were produced globally in 2025 – a more than 25% increase on the previous year.
Intense domestic competition in China is squeezing profit margins, pushing
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manufacturers to seek higher profits overseas. Chinese electric car exports
doubled to a record high of over million in 2025, as production outstripped
domestic demand. In 2024, China overtook the European Union to become the
largest exporter of cars; in 2025, more than 35% of China’s car exports were EVs,
up from 20% in 2024. Imports from China accounted for 55% of electric car sales
in 2025 in countries outside Europe and the United States, up from less than 5%
just 5 years earlier. More than half of electric cars sold in Southeast Asia in 2025
were by Chinese brands, while one-third came from a Vietnamese manufacturer.
Around one-quarter of electric cars produced in 2025 were traded between
countries. Electric car exports from the European Union grew 25% in 2025, but
imports also rose by around 35% year-on-year to more than 900 000; China
accounted for almost 60% of these imports. Imports to the United States fell
slightly in 2025, with the largest share coming from Mexico. In the first quarter of
2026, electric car exports from China more than doubled compared with the same
period in 2025, offsetting weaker domestic sales. Yet Chinese exports could face
headwinds in 2026 as inventories build up: in 2025, exports are estimated to have
exceeded overseas sales by more than 25%.
China accounted for over 80% of battery cell production in 2025 and even
higher shares of production of the active materials in EV batteries. Nearly all
battery cells used worldwide are supplied by companies headquartered in China,
Korea or Japan, and the market share of Chinese producers is growing especially
fast in the European Union, having almost doubled since 2023. However, narrow
profit margins are putting pressure on some battery manufacturers, and tightening
access to advanced manufacturing production tax credits in the United States
could challenge Korean and Japanese battery manufacturers that are heavily
exposed to the US market. Despite lithium-ion battery manufacturing capacity
growing faster in the European Union and the United States than in China last
year, China is set to remain the largest producer of batteries and battery materials
to 2035 based on stated policies.
Technology advances and AI are reshaping the
automotive industry, led by the EV industry
Following the lead of pure-play EV makers, most major automakers are
developing vehicles with more centralised software systems that allow key
functions and systems to be updated remotely. Battery electric vehicles are
currently the most advanced of these “software-defined vehicles” (SDVs), which
rely on more centralised control architectures and enable a wide range of vehicle
developments, supported by falling prices for sensors, more powerful computing
chips and the use of artificial intelligence. Advanced driver assistance systems
(such as automated steering and speed control) as well as EV battery
management improvements are key applications. The use of autonomous
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vehicles is also accelerating, with driverless taxis – all of them electric – now
operating commercially in more than 20 cities, mainly in China and the
United States. However, with new technologies come new challenges: the greater
number of semiconductors needed to support increasingly digital and autonomous
vehicles means increasing reliance on supply chains that are already
geographically concentrated. Further, managing cybersecurity risks will become
increasingly important for automakers.
Technological advances are improving EV charging times and creating
opportunities to reduce peak demand on the grid. New power-electronics
materials, battery cell technologies and battery pack architectures are enabling
charging systems that are more efficient, higher voltage – and therefore faster.
The first 1 000-volt models came out in 2025, and announcements of charging
times of under 10 minutes have continued into 2026. The number of electric cars
able to use chargers above 250 kW represents less than 5% of the vehicle stock,
but sales are growing alongside the expansion of ultra-fast and megawatt-scale
chargers. As EV deployment and charging speeds increase, grid capacity
constraints could become more pronounced in some regions. With no change to
current policies, electricity demand from EVs could exceed 1 500 TWh by 2035 –
growing around sixfold from 2025 levels. While impressive, this would increase
total global electricity demand in 2035 by only about 4%. The impacts vary by
region: across Europe, EV deployment in road transport increases total electricity
demand by more than 10% in 2035, compared with an increase of under 6% in
China. Measures such as smart charging, which reduces peak demand by shifting
charging loads, or vehicle‑to‑grid (V2G) – which allows EVs to feed electricity back
to the grid – can offer additional flexibility. The first commercial offers for V2G for
private EV owners appeared in 2025, although there are few V2G-capable models
available, the regulatory landscape for V2G remains fragmented, and standards
are not yet clear. Battery innovation is likely to continue: patents related to
batteries account for nearly half of all energy-sector patents.
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Chapter 1. Trends in electric car
markets
Electric car sales
Electric car sales topped 20 million globally in 2025
One in four new cars sold worldwide was electric in 2025
The electric car market reached new highs in 2025, growing by 20% from 2024 to
exceed 20 million sales, in line with expectations in the 2025 edition of the
Global EV The sales share of electric cars in the overall car market
increased to 25%. This marked the fifth consecutive year in which annual electric
car sales increased by about million, a trend that began in 2021 after the
Covid‑19 pandemic. As a result, about 5% of the global car stock is now electrified,
displacing million barrels of oil per day in 2025 (see Annex A).
Figure Electric car sales globally and sales share for selected regions, 2020-2025
IEA. CC BY .
Note: Electric cars include battery electric and plug-in hybrid electric cars.
Sources: IEA analysis based on EV Volumes, ACEA, EAFO and country submissions.
2 In this report “sales” represents an estimate of the number of new vehicles hitting the roads. Where possible, data on new
vehicle registrations is used. In some cases, only data on retail sales are available. New car sales or registrations exclude
used cars. Unless otherwise specified, the term electric vehicle is used to refer to both battery electric and plug-in hybrid
electric vehicles (PHEVs) but does not include fuel cell electric vehicles (FCEVs).
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In particular, 2025 saw a boost for battery electric cars. The share of battery
electric cars in total electric car sales increased to 65%, reversing the trend seen
in the 2 years prior. While 2024 saw a strong increase in extended-range electric
vehicles (EREVs), this did not continue in 2025, dropping to less than 7% of total
electric car sales, after rising to % in
Market developments varied across regions. In the People’s Republic of China
(hereafter, “China”), growth slowed slightly partly as a result of its trade-in scheme
being temporary halted, but the country still accounted for more than half of the
global increase in electric car sales in 2025. Europe experienced an upswing in
sales following a step change in the EU CO2 standards, with sales rising 30% to
more than 4 million after having stagnated in 2024. In the United States, the sales
share of electric cars remained relatively stable at just below 10%, despite several
policy shifts, including the ending of tax credits, which resulted in sales falling
significantly in the last quarter of the year. Meanwhile, outside of these major car
markets, sales continued to expand rapidly.
In a growing number of countries, the electric car sales share has recently
surpassed 10%, and in some cases, progress has been even faster than in the
three largest EV markets. Some later‑entry markets have seen rapid increases in
electric car sales, thanks to the economies of scale and cost-competitiveness of
Chinese-made electric cars. For example, Nepal has witnessed one of the largest
increases in electric car sales shares since 2020, as imports of electric cars made
in China increased significantly. More than half of the 2 million electric car sales
outside of the three major markets in 2025 took place in countries across
Latin America, the Asia Pacific and the Middle East that have now reached an
electric car sales share of more than 10%.
3 If not otherwise specified, plug-in hybrid electric vehicles (PHEVs) include EREVs. EREVs are a subset of PHEVs that have
both an internal combustion engine (ICE) and a plug-in rechargeable battery.
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Figure Electric car sales share in selected countries and regions where the share
exceeds 10%, 2020-2025
IEA. CC BY .
Note: Electric cars include battery electric and plug-in hybrid electric vehicles.
Sources: IEA analysis based on EV Volumes, ACEA, EAFO, ACUA, ODMD, OICA, DLT, VAMA, Gaikindo, LTO, MAA,
LTA, Marklines, Sinoimex, AleTech, EU Statistical Pocketbook, ORNL, BTS, CBS, Andemos, NZTA, FCAI, and country
submissions.
Across the three major electric car markets, sales growth
was strongest in Europe
Close to 55% of new cars sold in China were electric in 2025
More than 13 million electric cars were sold in China in 2025, maintaining its
position as the world’s largest electric car market, accounting for six out of ten
electric cars sold globally. Monthly electric car sales exceeded a 50% sales share
in 11 out of 12 months of 2025 – up from only 5 months in 2024. This lifted the
electric car sales share to almost 55%. As a result, an estimated 44 million electric
cars were on Chinese roads at the end of 2025, representing around 13% of the
total car stock, up from 1 in 10 in 2024.
Growth in electric car sales in China has been extremely rapid over the past five
years: from 2020-24, the annual growth rate in electric cars exceeded 75% and
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Growth in electric car sales in China has been extremely rapid over the past five
years: from 2020-24, the annual growth rate in electric cars exceeded 75% and
the sales share increased by around 10 percentage points on average each year.
By contrast, in 2025, electric car sales grew less than 20% and the sales share
rose by only about 6 percentage points. However, China remains by far the largest
electric car market and has one of the highest sales shares of any country.
Many of the electric car sales in 2025 benefited from the trade-in scheme that was
introduced in April 2024 and renewed at the beginning of 2025, offering
CNY 20 000 (Chinese Yuan renminbi) (USD 2 750)4 to consumers that replaced
an older vehicle with a new electric car, and CNY 15 000 (USD 2 050) for
replacement with a new conventional vehicle. In July 2025, the trade-in scheme
was temporarily halted in several cities, causing electric car sales to dip by 10%
compared to June. Despite this temporary pause, the scheme still attracted
million applications over the year, and by November 2025, nearly 60% of
applications were for new energy vehicles.
The trade-in scheme was paused due to limited funding at the provincial level and
increasing reports of “zero-mileage cars”, which are vehicles purchased new and
immediately resold on the domestic or global used car market. This allows buyers
to take advantage of subsidies and helps manufacturers meet production targets,
but they also disrupt pricing for local There are no official statistics
on the number of zero-mileage cars, but estimates suggest that roughly 2% of new
conventional car sales in 2025 were for zero-mileage used cars, while for electric
car sales this percentage may be slightly higher, at roughly 4%.
4 Unless stated otherwise, USD figures are real 2025 dollars in market exchange rate terms throughout this report.
5 “Zero‑mileage cars” are effectively new cars and are counted as such in Chinese sales statistics. However, when these
cars are exported and resold abroad, they may be misinterpreted in the destination markets, despite already having been
registered once in China. The data shown in this report cannot account for this potential misinterpretation. See box on
the export of used zero-mileage cars.
:8443/syxwfb/art/2026/
:8443/syxwfb/art/2026/
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Figure Electric car registrations and sales share in selected countries and
regions, 2019-2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid vehicle; EREV = extended-range electric vehicle.
Sources: IEA analysis based on country submissions and data from EV Volumes, ACEA, EAFO, ODMD.
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Electric car sales saw strong growth in Europe in 2025, thanks
to policy support
Electric car sales increased by more than 30% in Europe in 2025, reversing the
relative stagnation seen since 2022. Across the region, electric car sales
numbered 1 million more in 2025 than in the previous year, reaching a total of
million, or 28% of all new cars sold. In the European Union, electric car sales
totalled almost 3 million and the EV sales share reached just under 27%.
Additionally, 24 of the 27 EU member states recorded an increase in electric car
sales shares, compared with just 13 the previous year. In more than half of these
countries, the sales share rose by more than 5 percentage points.
The increase in EU electric car sales was the result of policy design, notably the
step change in the EU CO2 standards that came into effect in 2025, targeting an
emissions reduction of 15% compared to 2021 Towards the end of 2025,
the European Commission proposed the Automotive Package, aimed at further
increasing regulatory flexibility for 2030 and 2035 while supporting EU industrial
competitiveness by promoting vehicles that are made in the European Union as
well as electrifying company fleets (see Chapter 9).
In Germany, the largest electric car market in Europe, electric car sales increased
by 50% in 2025, to reach a record high of 850 000. This rebound was supported
not only by preferential tax treatment for electric company cars, but also by the
wider availability of more affordable models, which contributed to a fall in the
average battery electric vehicle (BEV) price of around 6% in 2025. Around 30% of
cars sold in Germany in 2025 were electric, just slightly below the 31% sales share
achieved in 2022. In France, battery electric car sales increased by almost 15%
in 2025 while PHEV sales decreased by 25%. As a result, the electric sales share
remained similar to 2024 levels, representing around 25% of total car sales.
Impressive sales growth in Italy (+65%), Poland (+125%) and Spain (+80%) was
supported by the reintroduction or continuation of EV purchase subsidies in 2025.
In the United Kingdom, electric car sales increased by more than 25%,
accounting for over 1 in 3 new cars sold in 2025 – a significant increase from 1 in
4 new cars in 2024. Nearly half a million electric car sales were battery electric,
representing 23% of all new cars sold. This fell short of the target set under the
Vehicle Emissions Trading Schemes, which aimed for zero-emission cars (battery
electric and fuel cell) to reach 28% of new registrations in 2025. However,
6 Regulation (EU) 2019/631, as amended in 2023, established a tightening of CO2 standards for new passenger cars in 2025,
requiring a 15% reduction in fleet‑average emissions relative to 2021 levels, following several years without increased
stringency (2021-24). While the 2025 target level remained unchanged, in March 2025 the European Commission introduced
a flexibility mechanism allowing manufacturers to average compliance over the 2025-27 period.
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manufacturers were still able to comply with the targets by using the scheme’s
flexibilities introduced in 2025, such as borrowing credits from future years and
earning extra credits. To further support sales, in July 2025 the government
introduced a new subsidy for eligible battery electric cars priced below
GBP 37 000 (USD 47 400). More than one-quarter of battery electric car sales
were eligible for this subsidy in 2025.
Norway remains the world’s leading electric car market in terms of sales shares,
with about 97% of new car sales being electric in 2025. Nearly all of the 2025
electric car sales were battery electric and less than 2% plug-in hybrid, coming
close to the country’s target of selling only zero-emission cars in 2025. Starting in
2026, the purchase tax exemption for battery electric cars will be tightened to only
apply to those priced at NOK 300 000 (Norwegian kroner) (USD 28 000) or less,
down from NOK 500 000 (USD 47 000), and will be phased out completely in
2028.
One of the fastest-growing electric car markets in Europe in 2025 was Türkiye,
where sales more than doubled compared to 2024 to reach nearly 240 000.
Electric cars represented over 20% of new car sales in 2025, up from just over 1%
in 2022. As a result, Türkiye became the fourth-largest electric car market in
Europe last year, following Germany, the United Kingdom and France. Sales have
surged since 2023, partly driven by the reduced registration tax (ÖTV) for BEVs
of just 10%, compared to 45-80% for conventional cars. By July 2025, the ÖTV for
battery electric cars was raised to 25% for models meeting certain price criteria.
Following this change, electric car sales dipped for a few months but rebounded
in December to a similar level to in June (over 30 000). The upswing in sales was
also supported by growing domestic electric car production: sales from Türkiye’s
own pure-play EV manufacturer, Togg, rose 30% in 2025. However, Togg’s
market share decreased from 30% to just over 15% as other brands entered the
market. Furthermore, with the introduction of new models, the share of BEVs in
electric car sales decreased from 90% to 80%, still significantly higher than the
overall share of BEVs in European sales.
Across Europe, the share of BEVs in electric car sales has increased steadily over
the past few years, supported by emission standards that favour zero‑emission
vehicles, in particular the EU CO2 standards. The BEV share in electric car sales
rose from 55% in 2020 to nearly 70% in 2025. As a result, Europe and China
reached similar shares of BEVs in EVs in 2025, with Europe ending the year
slightly higher.
Overall, electric cars now represent about 5% of the European car fleet. Norway
leads, with more than one-third of the car stock being electric. Within the
European Union, only Denmark has a stock share above 20%, reflecting the lag
between rapid sales uptake and stock turnover.
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In the United States, electric car sales fell sharply in the last
quarter of 2025
Electric car sales in the United States in 2025 were slightly lower than in 2024, at
around million. This stagnation was the result of several policy shifts. At the
beginning of 2025, Executive Order 14154 directed the government to end support
for EVs, including measures related to financial incentives and fuel economy
standards. In July 2025, the One Big Beautiful Bill Act (OBBBA) eliminated the
financial penalties for non-compliance with existing fuel economy standards,
providing carmakers less incentive to sell EVs in the United States. The OBBBA
also terminated tax credits for new and used electric car purchases after
September 2025. As a result, new electric car sales in the fourth quarter of 2025
were 45% lower than in the fourth quarter of 2024, offsetting the almost 15%
increase in Q1-Q3 sales in 2025 compared to the same period the previous year.
Some of the sales prior to the fourth quarter were made in anticipation of the end
of the tax credits. Although electric cars made up only 6-7% of car sales in
Q4 2025, they represented around 10% of sales across the full year, only slightly
less than in 2024.
Sales outside major markets reached nearly 2 million in
2025
Emerging markets represent an increasing share of global
electric car sales
Outside the three major electric car markets – China, Europe and the
United States – electric car sales increased steadily to reach 2 million in 2025,
compared to million sold the previous year. This nearly 50% growth can mainly
be attributed to increasing sales in emerging markets and developing economies
(EMDEs) other than China.
Electric car sales in these economies increased by around 80% in 2025, to reach
almost million, a record high. Rapid sales growth in these markets has mainly
been driven by the increasing availability of lower‑cost electric car models, many
of which are imported from China (accounting for 60% of sales in EMDEs other
than China). Several markets doubled in size compared to 2024, with
Southeast Asia demonstrating the largest absolute increase in sales. The share
of BEVs in electric car sales (80%) is higher than in major markets (65%), but this
is not a uniform trend across emerging markets. In Southeast Asia, more than 90%
of electric car sales are for BEVs, but the opposite trend can be seen in other
countries, such as Brazil (45%) and Uzbekistan (33%), where BEVs represent a
minority share of electric car sales.
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Figure Electric car registrations and sales share in countries and regions outside
the three major electric car markets, 2020-2025
IEA. CC BY .
Sources: IEA analysis based on country surveys and EV Volumes, Vahan, DLT, VAMA, Gaikindo, LTO, MAA, LTA,
Marklines.
Electric car sales took off in Korea in 2025, in contrast to
several other advanced economies
Electric car sales in Korea grew by around 65% year‑on‑year to reach more than
200 000 in 2025, after years of hovering around 130 000. As a result, the sales
share of electric cars reached double digits (11%) for the first time. The
government helped support sales earlier in 2025 by bringing forward the release
of purchase guidelines compared with previous years. In addition, at the start of
2026, the government raised its zero-emission vehicle deployment target, aiming
for electric and fuel cell electric vehicles to account for 50% of new car sales by
2030, providing a clearer signal for manufacturers to expand production capacity.
In Japan, despite subsidy support, electric car sales momentum remained weak
for the second year in a row in 2025, with volumes similar to 2024 levels (just
above 100 000). Electric cars accounted for less than 3% of sales, while
conventional hybrid electric vehicles (HEVs) accounted for around one-third of all
car sales in 2025. This reflects the long-standing focus of Japanese automakers
on hybrid technologies to reach fuel economy requirements. In addition, the high
share of the population living in apartments with limited access to private parking,
in combination with charging infrastructure constraints, are slowing sales.
In New Zealand, electric car sales stabilised in 2025 after a large drop in sales of
70% in 2024 after the removal of the Clean Car Discount. In Australia, electric
car sales rose steadily in 2025, reaching around 15% of new car sales as a
increasing share of PHEV sales supported growth.
0
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In Canada, electric car sales in 2025 were more than 30% lower than in 2024, due
in part to the ending of the iZEV rebate programme at the beginning of the year.
This programme offered up to CAD 5 000 (Canadian dollars) (USD 3 500) for
eligible BEVs, and CAD 2 500 (USD 1 750) for PHEVs. The sales share of electric
cars decreased from nearly 17% in 2024 to 11% in 2025.
Figure Electric car registrations and sales shares for selected countries, 2021-
2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid vehicle.
Sources: IEA analysis based on country submissions and data from EV Volumes and Marklines.
In Southeast Asia, electric car sales more than doubled in 2025
In 2025, Southeast Asia saw one of the world’s largest increases in electric car
deployment, with sales more than doubling year-on-year to more than half a million.
Across the region, electric cars represented close to one in five cars sold. However,
trends were uneven: Viet Nam, Indonesia and Thailand led the EV sales growth
in the region, supported by strong policy incentives, the expansion of domestic
manufacturing and favourable trade conditions for imports, particularly from China.
On the other hand, electric sales shares remained somewhat lower in Malaysia
and the Philippines, despite growing rapidly.
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Figure Electric car registrations and sales shares in Southeast Asia, 2021-2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid vehicle.
Sources: IEA analysis based on country submissions and data from EV Volumes, DLT, VAMA, Gaikindo, LTO, MAA, LTA
and Marklines.
Sales in Viet Nam more than doubled in 2025, promoting the country to
Southeast Asia’s largest electric car market, with nearly 40% of new car sales
being electric, above levels seen in most European countries. Policy support for
electric car purchases has primarily been provided through registration fee
exemptions for BEVs since 2022. The domestic EV maker VinFast has captured
nearly the entire market, and its small affordable models have been key enablers
of mass-market adoption. In 2025, the price-competitiveness of best-selling
EV models VF3 and VF5 helped them outsell conventional rivals in similar size
segments.
In 2025, electric car sales in Thailand increased by 70% from 2024 levels,
reaching roughly 140 000, nearly one-quarter of total new car sales. As a result,
the country represented the second-largest electric car market in the region. The
scheme that came into force in January 2024 continued to boost adoption
through purchase subsidies, excise tax breaks and import duty reliefs. In addition,
the scheme drove an increase in Thai-made electric car sales, by requiring
manufacturers to register their domestic electric car production before
January 2026 in exchange for the import duty exemptions. Thai-made electric cars
represented 20% of the market in 2025, up from about 5% the year before. Despite
policy settings shifting to support domestic production, Chinese-made electric cars
still represented three-quarters of the Thai market in 2025 (see Chapter 7).
In Indonesia, electric car sales more than doubled in 2025, reaching 15% of new
car sales. Key policy support measures were VAT and import duty exemptions for
battery electric cars. In anticipation of the tariff exemption for battery electric car
imports coming to an end in December 2025, manufacturers ramped up imports
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towards the end of the year, resulting in about half of 2025 sales taking place in
the last quarter. About 75% of 2025 sales were imports from China, while the rest
were cars produced domestically by Chinese carmakers (mostly by Wuling) –
supported by a wide range of manufacturing incentives – and imports from
neighbouring countries such as Viet Nam and Thailand. As industrial and trade
policies shift the focus towards local production, the importance of imports in
Indonesia’s electric car market is set to wane in 2026.
While electric car sales also doubled in Malaysia in 2025, uptake was lower than
in other neighbouring markets, with the share of electric cars in new car sales
standing at about 7%. Southeast Asia’s largest car market has been supporting
electric car adoption primarily through excise tax and import duty exemptions,
resulting in Chinese imports accounting for as much as 80% of the market in 2025.
These exemptions ended at the end of 2025 but remain active for completely
knockdown kit (CKD) imports until the end of 2027, to enable domestic assembly
with cost-competitive imported parts. 7 Several domestic car makers, such as
Proton and Perodua, have also started to add electric models to their line-ups. In
2025, Proton’s best-selling electric cars were the 5 and 7, which
were among the most competitively priced electric models on the market, priced
at only around 10% more than comparable conventional cars (see Chapter 2).
Electric car sales leapt up in the Philippines in 2025, reaching almost 10% of new
car sales, up from a negligible level the year before. Similarly to other Southeast
Asian countries, policy support in the Philippines takes the form of excise tax relief
(introduced at the start of 2025) and import duty exemptions (introduced in 2024)
for electric cars. As a reflection of this, Chinese imports, particularly from BYD,
made up most of the country’s electric car sales in 2025. The importance of
Chinese imports is set to continue in the near term, with the tariff exemption
running until 2028.
Electric car sales in India remain modest but are starting to pick
up
Despite being the second-largest car market in the Asia Pacific region, India’s
electric car sales remained below levels seen in Viet Nam and Thailand. However,
sales started to pick up in 2025, increasing 75% year-on-year to reach 165 000,
representing nearly 4% of total car sales. Roughly 60% of electric car sales were
produced in India by domestic automakers Tata and Mahindra. Mahindra
7 Completely built-up (CBU) vehicles are fully assembled vehicles imported into a country ready for sale and use. Completely
knockdown (CKD) vehicles are shipped as a full set of parts that require complete assembly in the destination market. Semi-
knockdown (SKD) vehicles are partially assembled units requiring limited final assembly before sale. CKD and SKD trade
usually allows manufacturers to reduce import tariffs and supports the gradual development of local supply chains.
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introduced two new electric models in 2025, and saw electric car sales increase
fivefold compared to 2024. Besides local automakers building up sales, more
brands started to sell electric cars in India, with the number of electric models
available increasing from 33 to 45 between 2024 and 2025.
Following the announcement by the Indian government in 2024 of the Scheme to
Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), the final
requirements were announced in June 2025. The SPMEPCI will allow selected
automakers to import higher-priced CBUs at a minimum import value of
USD 35 000 with a reduced import rate of 15%, compared with duties of up to
110% for non-eligible imports, for a period of five years. While several automakers
expressed interest, decisions to participate were delayed in 2025, with companies
citing uncertainty related to the ongoing European Union-India free trade
agreement negotiations and Chinese restrictions on rare‑earth magnet exports,
which raised concerns about meeting the scheme’s localisation requirements.
Brazil and Mexico were behind the 75% electric car sales
growth observed in Latin America in 2025
Electric car sales growth accelerated across major markets in Latin America in
2025, to reach more than 350 000 cars – an increase of 75% compared to 2024.
More than 75% of the region’s sales growth came from Brazil and Mexico, where
PHEV sales, in particular, expanded rapidly. As a result, PHEVs represented close
to 50% of electric car sales in Latin America in 2025, up from 40% the year before.
Several smaller Latin American markets, such as Uruguay, Costa Rica and
Colombia, also saw sales growth, mostly of battery electric cars, thanks to tax and
import incentives.
Figure Electric car registrations and sales shares in Latin America, 2021-2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid vehicle.
Sources: IEA analysis based on country submissions and data from EV Volumes, ACAU, AleTech and Marklines.
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Electric car sales in Brazil surged to 180 000, or 9% of all new car sales, up from
% in 2024. Brazil is one of the few countries where more PHEVs are sold than
BEVs; the share of PHEVs in EV sales has hovered between 60% and 50% over
the past few years. Growth has been driven by reduced import tariffs for electric
cars, which are being gradually reinstated. In 2025, just under 85% of all electric
cars sold in Brazil were made in China, a slightly smaller share than in 2024. This
can be attributed in part to the opening of a Great Wall Motors plant in Brazil, which
produced just under 5% of electric cars sold in the country in 2025. In addition,
BYD started operations of its new factory in Brazil in 2025. One of the models it
will produce is the Song Pro, which is flex-fuel compatible, specifically tailored to
the Brazilian market.
Electric car sales in Mexico tripled in 2025, with sales of plug-in hybrid electric
cars increasing sevenfold. As a result, the share of electric car sales in total car
sales topped 7% in 2025, up from around 2% in 2024. Imports from China
increased significantly, with 85% of electric car sales in 2025 being imports from
China, up from just over 60% in 2024 (see Chapter 7), despite the reinstatement
of import tariffs for electric cars in October 2024. BYD has announced plans for
local production, but as of 2025 no large‑scale manufacturing had begun. Geely
and BYD are currently among the bidders to take over a factory in the country from
Nissan.
Aside from the major markets, many countries in Latin American and the
Caribbean now have either import or purchase tax exemptions for EVs in
Uruguay has become one of the region’s front‑runners in switching to electric cars:
Sales of electric cars more than doubled between 2024 and 2025, reaching
13 500 cars, or nearly 30% of total new car sales in the country. Uruguay’s market
is strongly skewed toward BEVs rather than PHEVs, supported by government
policies such as tax exemptions and subsidies. Furthermore, gasoline prices are
much higher compared to other Latin American countries, further supporting the
adoption of BEVs: in 2025 the average gasoline price was USD 2 per litre, 75%
higher than in Brazil or Argentina.
Costa Rica reached an electric car sales share of 17% in 2025, up from 15% in
2024. Recent growth in Costa Rica has been partly due to tax exemptions for
electric models, which are gradually being phased out between 2025 and 2035.
Colombia also experienced a rapid increase in EV sales, supported by greater
availability of cheaper Chinese models, tax exemptions, and sharply rising
gasoline prices following the phase‑out of fuel subsidies in 2023.
8 This includes Argentina, Costa Rica, Brazil, Bolivia, Chile, Ecuador, Saint Lucia, Trinidad and Tobago and Guatemala,
Uruguay, El Salvador and Jamaica.
?
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One of the only countries in Latin America with mandated fuel economy standards
is Chile, through its Energy Efficiency Law which started to be implemented in
2024. As a result, the average fuel economy of new car sales has since improved
by over 17% annually, largely due to electric car sales. Electric car sales
quadrupled in Chile between 2023 and 2025, to represent roughly 4% of total car
sales. In Argentina, electric car sales remained very limited, with fewer than
2 000 cars sold in 2025. However, the BEV segment expanded significantly, with
sales more than doubling, thanks to the market launch of two new BYD models.
In addition, in 2025 the city of Buenos Aires introduced incentives such as
exemptions from licence plate fees and road tolls for electric and hybrid vehicles,
applicable until mid‑2026, helping to gradually improve the attractiveness of
electric mobility.
Eurasian and Middle East regions show continued growth
Electric car sales only began to pick up in the Eurasian region from 2023 onwards,
rising from just a few hundred sales in 2022 to more than 60 000 in 2025.
Uzbekistan accounted for nearly half of the region’s electric car sales in 2025,
with electric cars reaching 8% of total car sales. Uzbekistan is also the main car
assembler in the region and hosts an EV production plant owned by a joint venture
between BYD and UzAuto Motors. Electric car sales also grew rapidly in
Tajikistan and Kyrgyzstan. In 2025, these two countries represented more than
30% of electric car sales in the region. BYD accounted for around 80% of all
electric cars sold in the region, including those supplied through the joint venture
with UzAuto Motors. Nevertheless, around 95% of electric cars sold in the Caspian
region in 2025 were produced in China.
Figure Electric car registrations in selected Middle Eastern and Eurasian
countries, 2021-2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid electric vehicle.
Sources: IEA analysis based on country submissions and EV Volumes, ReviewUZ,and Marklines.
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Electric car sales in the Middle East reached around 75 000 in 2025, expanding
by more than 40% year‑on‑year. The United Arab Emirates remained the
region’s largest electric car market, accounting for almost 50% of sales, though its
share of the regional market has declined from over 60% in 2023 as neighbouring
markets have gained momentum. Sales have grown particularly quickly in Qatar
and Saudi Arabia, which together now represent nearly 45% of regional demand.
Market preferences have also shifted markedly in recent years. When electric car
sales first began to scale in 2020, US‑manufactured Tesla models accounted for
about half of all sales. Today, Tesla’s share has fallen to around 15%, while BYD
– which entered the regional market in 2022 – has rapidly expanded to a 60%
market share.
Adoption of new electric cars in Africa has been limited to a few
countries to date
In the past two years, the electric car market in Africa increased from around
4 000 car sales in 2023 to about 25 000 in 2025, driven primarily by sales growing
in Egypt (7 900), Morocco (5 500) and South Africa (3 800), which together
accounted for nearly 70% of regional sales in 2025. However, Ethiopia, Mauritius,
Rwanda and Nigeria have also seen progress in electric car uptake. In South
Africa, electric car sales remained at less than 1% of new car sales in 2025, but
PHEV sales saw a strong increase, resulting in PHEV sales accounting for more
than 70% of total electric car sales.
The African car market is in large part reliant on used exports from car-producing
countries such as Germany, Japan and the United States. It is estimated that
around 60% of all annual additions to the car stock in Africa are imported used
cars. Therefore, tracking new electric car registrations or sales may not accurately
reflect adoption of EVs in Africa. Data on the electrification of used exported cars
is limited and further complicated by exports of zero-mileage vehicles (see
box ).
The number of new registrations or sales can also be difficult to track, as new
sales and used imports are often not distinguished in country statistics. Estimates
of sales for Ethiopia, in particular, vary widely. Cumulative retail sales of new
electric cars between 2021 and 2025 amount to slightly over 2 000. However, the
vehicle licensing authority reports a cumulative 15 000 electric cars sold between
2022 and 2024, and that approximately half of all new cars sold in 2024 were
electric.
As in many other EMDEs, the share of electric car sales coming from Chinese
automakers is increasing. In 2023, roughly 40% of electric car sales in Africa came
from European automakers, while BYD held only a 4% market share. By 2025,
BYD accounted for 35% of all electric cars sold in the region. There are, however,
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developments underway from domestic manufacturers, and Moroccan automaker
Neo Motors started to sell its first electric model at the beginning of 2026.
Figure Electric car registrations in selected African countries, 2021-2025
IEA. CC BY .
Note: BEV = battery electric vehicle; PHEV = plug-in hybrid electric vehicle.
Sources: IEA analysis based on country submissions and EV Volumes, North Africa Post.
Model availability and range
The number of electric car models keeps growing, in
contrast to conventional car models
Some 2 500 car models were available worldwide in 2025. Nearly 1 000 of these
were electric cars, about 40% of the total, up from about 35% in 2024. Counting
both battery electric and plug-in hybrid electric models, the number of electric car
models has more than doubled in the past five years. In 2025, the number of
electric car models available worldwide increased by slightly more than 25%, a
larger increase than the just over 15% seen in 2024. Hybrid model availability also
continued to expand, rising by over 10% year-on-year to more than 200 models in
2025. By contrast, the number of internal combustion engine (ICE) car models
remained constant in 2025 – the only powertrain category to do so.
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Figure Number of car models available worldwide by powertrain, 2020-2029
IEA. CC BY .
Notes: ICE = internal combustion engine; BEV = battery electric vehicle; PHEV = plug-in hybrid electric vehicle. Future
model availability is based on EV launch announcements and the extrapolation of historic ICE and hybrid electric vehicle
model availability trends.
Sources: IEA analysis based on data from EV Volumes and Marklines.
The total number of electric car models could exceed 1 100 in 2026, based on
recent original equipment manufacturer (OEM) announcements, growing at
around 15% compared to the previous year. BEVs continue to account for around
65% of all electric car models, a share that has remained broadly stable since
2015. Looking forward, the share of PHEVs in total electric car models is expected
to decline from around 35% in 2026 to around 30% by the end of the decade.
Around 150 new electric models have been announced for release in 2026,
followed by approximately 70 in 2027 and 40 in 2028. Looking further ahead,
seven models have already been announced for 2029. In aggregate,
announcements suggest that electric model availability in 2029 will be over 25%
higher than in 2025. Extrapolating historic trends, hybrid model availability could
increase by around 30% to 2029, while ICEV model availability plateaus. As a
result, the number of announced electric models around the world would be nearly
25% lower than the number of conventional models in 2029. However, this varies
by region, reflecting differences in market structure, policy contexts and overall
OEM strategies. While early announcements of new electric models point to
continued build-up of EV model pipelines (see section on Carmaker electrification
announcements in Chapter 9) for some OEMs, others are putting more emphasis
on alternative options, for example by prioritising hybrids.
Globally, SUV model availability has expanded steadily and now represents the
largest segment, accounting for around half of all available electric models in 2025.
As a result, large vehicles including SUVs accounted for almost 70% of all models
available in 2025, up from around 55% in 2020. In contrast, small cars represented
only around 10%.
Announced models
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2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
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Model availability continues to shift towards larger
vehicle segments
Figure Number of car models available by powertrain, size and region, 2024-2025
IEA. CC BY .
Notes: EV = electric vehicle, including battery electric and plug-in hybrid electric vehicles; ICEV = internal combustion
engine vehicle; HEV = hybrid electric vehicle; SUV = sports utility vehicle. See Annex B for definition of car size groups.
Sources: IEA analysis based on data from EV Volumes, Marklines.
In China, growth in the number of electric car models, especially large models,
was the main driver of an expansion in car model availability last year. The total
number of available car models increased by around 10% in 2025 to more than
1 100, while the number of electric models increased around 25%. As of the end
of 2025, there were nearly 700 electric car models available, 60% more than the
number of conventional car models. Among major global automotive markets,
such as China, Europe, the United States and Japan, China is the only market
with more electric than conventional models, reflecting that competition among
Chinese OEMs is increasingly focused on EVs. Despite the number of large and
SUV EV models growing over 25% in 2025 in China, their share of total electric
car sales only increased by one percentage point, to reach more than 60%,
although 2025 sales were 25 percentage points higher than 2020 levels.
Among the three major electric car markets, Europe recorded the fastest growth
in electric car model availability in 2025. The total number of electric car models
increased by nearly 35%, reflecting an uptick in model launches ahead of the
introduction of the more stringent 2025 EU CO2 target. At the same time, Europe
continued to have the highest number of conventional car models available, with
580 ICE models and nearly 100 hybrid models in 2025. Large cars and SUVs
accounted for almost three-quarters of EV and conventional vehicle models in
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EV ICEV + HEV
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Europe
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2025. However, the availability of small EVs in Europe has improved significantly
in recent years and is set to expand further in response to upcoming EU policy
developments (see Box ).
The United States has the highest share of large models within its EV line-up:
over 85% of electric models are large cars or SUVs, compared with roughly three-
quarters in Europe and China. This is also reflected in sales, with large cars and
SUVs accounting for over 80% of all car sales in the United States. Among all
available car models in 2025, ICE models accounted for about 60%, electric for
nearly 30%, and hybrid around 10%. Compared to 2024, model availability across
ICEs, EVs and HEVs remained broadly unchanged in 2025. This follows recent
policy changes and past uncertainty around fuel economy and emissions
standards.
Figure Breakdown of electric car sales in selected countries and regions by car
size, 2020-2025
IEA. CC BY
Notes: EV = electric vehicle, including battery electric and plug-in hybrid electric vehicles; SUV = sports utility vehicle.
“Large and SUV” includes large cars, SUVs and passenger pick-up trucks. See Annex B for definition of car size groups.
Source: IEA analysis based on data from EV Volumes.
Box Small, affordable battery electric cars gain traction amid
EU policy shifts
Since 2024, against the backdrop of evolving EU CO2 emission targets,
carmakers have added more affordable battery electric car models to their line-
ups to enable wider adoption and comply with the increasing stringency of
emission targets. A handful of small, mass-market models have entered the
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EU market, including Renault’s 4 and 5, Hyundai’s Inster, BYD’s Seagull and
Leapmotor’s T03. As a result, the sales share of small battery electric cars
increased in 2025 – reversing five years of declining shares – and capturing
nearly one-tenth of the electric car market.
In December 2025, the European Commission presented its Automotive
Package, introducing CO2 compliance credits for small, affordable electric cars
that are made in the European Union. These vehicles, known as “M1E”, are
defined as battery electric passenger cars (M1) with an overall length of less
than metres. M1E cars generate credits that can be used towards
meeting emissions targets, thereby creating a new compliance lever for
carmakers, although use of M1E credits prohibits carmakers from pooling credits
with pure-play EV makers. In the first quarter of 2026, over one-fifth of the BEVs
sold in the European Union would qualify as M1E, provided that local content
requirements are met (see Chapter 9).
BEV sales shares and number of models with overall length of less than
metres in the European Union, 2020-2026
IEA. CC BY .
Notes: EU = European Union; BEV = battery electric vehicle. 2026e shows expected metre BEV model
count by the end of 2026.
Sources: IEA analysis based on EV Volumes and OEM model launch announcements.
While the full impact of this initiative on model line-ups will not be seen
immediately, the availability of metre BEV models has already made
significant strides in recent years. In 2025, about 30 BEV models met this size
criterion, almost double the number available three years earlier, although fewer
than 20 were assembled in the European Union and would potentially qualify for
compliance credits. Looking ahead, this measure is likely to support the market
entry of forthcoming small models made in the region such as the Renault
Twingo, Volkswagen and , and Kia EV2, potentially increasing the pool
of eligible M1E models to more than 20 by the end of 2026.
0%
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2020 2021 2022 2023 2024 2025 2026
(Q1)
≤ ("Made in the EU") ≤ (all)
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Share of BEV sales Number of BEV models
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Just five models represent around 20% of global battery
electric car sales
While model availability shapes consumer choice, greater availability is not
necessary reflected in EV purchase decisions; instead, buyers often tend to pick
one of a relatively small number of very popular models. In 2025, 630 battery
electric car models were available globally, yet sales remained highly
concentrated across a small group of best-selling models. In 2025, just five models
accounted for about 20% of global battery electric car sales: the Tesla Model Y
made up nearly 8% of total battery electric car sales, followed by the Tesla Model 3
(%), Geely Geome Xingyuan (%), Wuling HongGuang Mini (%), and
BYD Seagull (%). As a result, just 1% of available BEV models captured one-
fifth of the entire global market. The top-selling 35 models accounted for around
half of global battery electric car sales. Nevertheless, as EV adoption grows,
automakers tend to offer a greater range of electric car models, which leads to a
diversification of consumer choice. As recently as 2020, only two models
accounted for about 20% of global battery electric car sales.
Figure Battery electric car mode
