Oil Price Shock Sparks 35% Surge in Electric Vehicle Sales

A global oil price shock has driven electric vehicle (EV) sales to surge by 35% in the second quarter of this year, according to a report from the International Energy Agency (IEA). This rebound comes after a subdued start to the year, with EV sales falling in the first quarter due largely to lower sales in the US and China.

The IEA's analysis shows that EV sales reached record-high levels in 50 countries as drivers preferred electric vehicles amid soaring fuel prices. In sizable car markets such as Brazil, India, Australia, and Vietnam, electric car sales roughly doubled between March and June compared with the same period in 2025.

As a result of the surge in second-quarter sales, EV sales in the first half of this year are only slightly lower than in the first half of last year. The IEA projects that EV sales will reach a 29% share of total car sales worldwide in 2026, one percentage point higher than previously expected.

IEA Executive Director Fatih Birol notes that the falls in battery prices and potential policy responses to the current global energy crisis are set to provide further momentum in EV markets.