The International Energy Agency (IEA) has released its Global EV Outlook, predicting a record year for electric vehicle (EV) sales despite a slowdown in the market. The report highlights a surge in EV adoption worldwide, with sales expected to reach 23 million in 2026, accounting for nearly 30% of all new car sales. This follows a 20% year-over-year increase in 2025, where one in four new cars sold globally were electric. The IEA attributes this growth to the ongoing energy crisis and rising fuel prices, which make EVs more attractive to consumers.
However, the report also notes a dip in Q1 2026, with global EV sales falling 8% year-over-year, primarily due to policy changes in China and the US. Despite this, regional growth remains strong. Europe's EV sales jumped 30% year-over-year in Q1, while the Asia Pacific region (excluding China) saw an 80% surge, and Latin America experienced a 75% increase. The IEA's projections indicate a significant rise in the global EV fleet, from 80 million vehicles today to a potential 510 million by 2035.
China's dominance in the EV market is evident, with Chinese automakers supplying 60% of EVs sold worldwide in 2025 and producing nearly 75% of the world's EVs. This dominance extends to the battery supply chain, where China accounts for over 80% of global battery cell production. The report also highlights the growing market for electric trucks, with sales more than doubling in 2025, led by China.
Southeast Asia is emerging as a fast-growing EV market, with sales more than doubling in 2025 and reaching a 20% market share. The IEA predicts that EVs could make up 60% of new car sales in Southeast Asia by 2035, supported by lower prices and supportive policies. The report also includes a new section on automotive software and AI trends, emphasizing the evolving landscape of the EV industry.
In conclusion, the IEA's Global EV Outlook underscores the accelerating transition to electric vehicles, despite a temporary slowdown. China's leadership in EV manufacturing and battery production, coupled with the growing popularity of electric trucks and the emergence of Southeast Asia as a significant market, positions the EV industry for continued growth and innovation. As the world grapples with energy crises and seeks sustainable transportation solutions, the EV market is poised to play a pivotal role in shaping the future of mobility.
