Global electric car sales rebounded strongly in the second quarter of 2026, with growth in markets including Australia, Europe, South Korea and other regions offsetting weaker demand in China and the US, according to a new report from the International Energy Agency (IEA).

The IEA’s latest analysis, “Electric Car Markets in a Time of Uncertainty,” found that global car sales declined by around 5 per cent year-on-year between January and June 2026, largely due to economic pressures, higher fuel prices and changing policy conditions in the world’s two largest automotive markets.

Electric vehicle sales experienced a weak start to the year, mainly due to lower demand in China and the US, but recovered sharply in the second quarter.

Global electric car sales rose 35 per cent compared with the first quarter, reaching record levels in 50 countries.

Markets including Australia, Brazil, India, South Korea and Vietnam recorded significant growth, with electric vehicle sales roughly doubling between March and June compared with the same period in 2025.

Overall, more than 90 countries reported year-on-year growth in electric car sales during the first half of 2026.

The IEA said continued momentum, combined with policy support in Europe, Latin America and Southeast Asia, has lifted expectations for electric vehicles to account for 29 per cent of global car sales in 2026, one percentage point higher than the forecast in its Global EV Outlook 2026.

The report highlighted the impact of fuel market uncertainty on transport, noting that road vehicles account for nearly half of global oil consumption.

Rising fuel price volatility and supply risks have strengthened interest in alternatives such as electric vehicles, potentially accelerating the transformation of the global automotive sector.

However, weaker demand in China is expected to weigh on overall electric vehicle growth in 2026.

The IEA said electric car sales in China are forecast to stagnate for the first time this decade compared with the previous year, although electric vehicles are expected to represent more than 60 per cent of total car sales in the country, a record level.

The report also pointed to growing export strength from Chinese electric vehicle manufacturers.

During the first half of 2026, China’s electric car exports nearly matched the total volume exported throughout 2025.

The IEA estimates that around two-thirds of exported vehicles have already been sold, leaving more than one million electric cars available for sale in international markets when combined with previous unsold exports.

The growing presence of Chinese electric vehicle manufacturers is expected to increase competition for established global automakers, particularly in emerging markets where Chinese imports are expanding rapidly.

The IEA said emerging economies will play an increasingly important role in shaping the future automotive industry, with China and other developing markets expected to account for around 60 per cent of global car demand over the next decade.

As competition intensifies, the report said automakers that successfully expand in these high-growth markets will be better positioned to secure future market leadership. -OGN/TradeArabia News Service