New report finds robust momentum for Electric Vehicles (EV) in 2025, with record sales in nearly 100 countries, and potential for current crisis to lead to further growth in key markets, The International Energy Agency (IEA) said in its annual Global EV Outlook.
After strong growth last year, global electric car sales are expected to rise again in 2026, reaching 23 million and accounting for close to 30 percent of all cars sold worldwide, it added.
In 2025, global electric car sales grew by 20 percent to exceed 20 million, which means that a quarter of all new cars sold worldwide were electric.
In around 40 countries, electric cars accounted for 10 percent or more of new cars sold. In production, Chinese automakers supplied 60 percent of electric cars sold worldwide, while European and North American automakers were each responsible for about 15 percent of global sales.
Following policy changes in China and the United States, global sales of electric cars in the first quarter of 2026 fell by 8 percent compared with the same period in 2025. However, this overall decline masked strong sales growth in many other countries and regions. In Europe, sales increased by close to 30 percent year-on-year; in the Asia Pacific region excluding China, sales jumped by 80 percent; and in Latin America, they were up by 75 percent. In March, close to 90 countries around the world logged year-on-year sales growth, with around 30 of them registering record-breaking monthly sales.
The report finds that EVs are increasingly cost-competitive in key markets, which could reinforce demand, including from consumers worried about volatile fuel prices. By 2035, even without any new policy announcements, the global fleet of EVs (excluding two- and three-wheelers) is projected to surge as high as 510 million, up from nearly 80 million today.
Electric car sales set new records in close to 100 countries last year. 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,” said IEA Executive Director Fatih Birol. “Looking ahead, the falls we have seen in battery prices and the potential policy responses to the current global energy crisis are set to provide further momentum in EV markets.”
The report finds that sales of electric trucks are also growing significantly, with the vast majority in China. Global sales more than doubled in 2025 from the previous year. Electric models accounted for nearly one in ten trucks sold worldwide last year. And the most electrified road transport segment, two- and three-wheelers, continued to grow in 2025.
The report highlights Southeast Asia as a region where the momentum behind electric vehicles is particularly strong. Annual electric car sales in the region more than doubled last year, giving them a market share of close to 20 percent. According to the latest projections, that share could surge to 60 perent by 2035, based on supportive price dynamics and policies. 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.
China remains the world’s largest manufacturing hub for EVs, making nearly three-quarters of the almost 22 million electric cars produced globally last year. As production outstripped domestic demand, Chinese electric car exports doubled to a record high of more than 2.5 million. Outside of the three major EV markets of China, Europe and the United States, 55 percent of the electric cars sold in the rest of the world were imported from China – up from less than 5 percent just five years earlier. China also remains dominant in EV supply chains, accounting for over 80 percent of battery cell production in 2025 and even higher shares of production of key materials in EV batteries.
