IEA Sees 23 Million EV Sales in 2026 as Iran War Oil Prices Lift Demand
Updated
Updated · DW (English) · Jun 16
IEA Sees 23 Million EV Sales in 2026 as Iran War Oil Prices Lift Demand
3 articles · Updated · DW (English) · Jun 16
Summary
23 million electric cars are projected to be sold worldwide in 2026, the IEA said, putting EVs at nearly 30% of all new vehicle sales after about 21 million were sold in 2025.
Oil prices driven higher by the Iran war and battery costs now at roughly one-quarter of their level a decade ago are accelerating the shift, with cheaper running costs adding to the appeal.
China remains the main engine of growth: EVs have been cheaper than combustion cars there since 2024, 61% of new cars sold by April 2026 were electric, and the country makes 71% of global EV output.
Europe also kept expanding, with almost one in three new cars sold by April 2026 being electric, while the US lagged as EV share fell below 6% from around 10% in 2023-2025.
The broader trend is spreading beyond rich markets, with Latin American EV sales tripling in two years and BloombergNEF forecasting EVs could reach 80% of global new car sales by 2030.
With the US EV market stagnating, can American automakers still compete in the global electric race?
China's EV industry is creating massive overcapacity. Is the world heading for a major auto industry shakeout?
The EV boom is outpacing power grid upgrades. Is our energy infrastructure ready for the coming demand?
2026 Energy Disruption: Iran War Fallout, Oil Volatility, and the Accelerating Global EV Transition
Overview
In mid-2026, the global energy landscape is sharply divided between disruption from the Iran war and the rapid shift to electric vehicles. The Iran war has caused economic turmoil, with impacts on investment and employment rivaling past major crises. This conflict has led to extreme volatility in oil markets, with Brent crude and fuel prices reaching new highs before dropping sharply. These price swings have strained consumers and highlighted vulnerabilities in global supply chains. At the same time, the instability in fossil fuel markets is accelerating the adoption of electric vehicles, especially in emerging markets, signaling a major transition in global energy trends.