Electric vehicles and plug‑in hybrids are projected to account for 30% of worldwide car sales this year, the International Energy Agency said, as the Middle East fuel crunch and falling battery prices lift demand.

IEA data show global EV sales rose 20% to over 20 million in 2025 and are expected to hit 23 million this year, driven by a 50% jump in the Asia‑Pacific and 45% in Latin America. Europe is slated for a 20% lift, with one‑third of cars sold in 2026 expected to be electric.

China remains the engine, producing nearly three‑quarters of global EVs in 2025 and doubling exports to a record high. Prices fell more than 10% last year, and models priced below the average petrol car rose above 30% in 2025.

Policymakers may expand tax incentives as firms like BYD face intense price competition, while the IEA cautions that the Middle East conflict could temper overall sales growth.