EV sales hit new highs worldwide, with 50 countries reporting quarterly records in Q2 of 2026, according to the շարք IEA. Sales of EVs and PHEVs rose 4 percent year-over-year and 35 percent over the previous quarter, and are now expected to reach 29 percent of global car sales in 2026.

The boom was driven by fuel price spikes caused by the US‑Iran conflict, with IEA noting that road vehicles account for nearly half of global oil use. While global car sales fell 5 percent in the first half of 2026, electric‑vehicle sales remained buoyant in markets such as India, Brazil, Australia, and Korea, and saw a 35 percent increase in BEV registrations in the UK.

China emerged as the biggest beneficiary, with BYD expanding into Europe and the share of electric cars in Chinese exports rising from around 35 percent in 2025 to over 45 percent in the first half of 2026. China now produces more EVs than it sells, with an estimated one million vehicles sitting unsold.

China’s dominance in the battery value chain, where production costs are about 35 percent lower than in advanced economies, means that other nations will need coordinated government and industry efforts to close the gap.