IEA: Global EV sales jump 35% in Q2 and 50 countries set records
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- Global EV sales jumped 35% in Q2 2026 versus Q1, setting quarterly records in 50 countries, while overall global car sales fell roughly 5% year over year in the first half as China and US demand weakened.
- IEA raised its 2026 outlook, projecting EVs will make up 29% of all cars sold worldwide this year — one percentage point higher than its May 2026 Global EV Outlook forecast.
- China's EV market is expected to stagnate year over year for the first time this decade, though EVs still account for over 60% of new cars sold there, an all-time high.
- Chinese automakers exported nearly as many EVs in the first half of 2026 as in all of 2025, with roughly one-third left unsold, leaving more than 1 million Chinese-made EVs available globally.
- The Trump administration ended federal EV tax credits in September 2025 and weakened fuel-economy rules, contributing to sharply lower US EV demand, while 90-plus other countries posted year-over-year growth.
- Australia, Brazil, India, Korea, and Vietnam roughly doubled EV sales from March through June 2026 versus the same stretch in 2025, with IEA noting policy support in Europe, Latin America, and Southeast Asia.
- Middle East war fallout shoved fuel costs and supply security back into focus, and IEA says government and industry responses to the energy crisis could further accelerate EV adoption.
Why it matters: The EV market's growth engine is shifting decisively away from China and the US: with 90-plus countries posting gains and 50 setting quarterly records, the IEA raised its 2026 penetration forecast to 29%. Meanwhile, more than 1 million unsold Chinese EVs are sitting in global inventory, threatening to undercut legacy automakers in emerging markets where Chinese brands are already gaining on price.
