A new report by the International Energy Agency (IEA) projects that global electric car sales will rise to 23 million units in 2026, accounting for 28 per cent of total global car sales.
The report Global EV Outlook 2026 released on May 20, 2026, highlights the continued expansion of electric mobility despite economic uncertainty, geopolitical tensions and fluctuations in major markets.
According to the document, global electric car sales exceeded 20 million units in 2025, representing a 20 per cent increase compared to the previous year. As a result, one in every four new cars sold worldwide in 2025 was electric. Around 40 countries recorded electric vehicles (EVs) accounting for at least 10 per cent of all new car sales, underlining the rapid transformation of the global automobile industry.
Europe emerged as one of the strongest-performing EV markets in 2025. EV sales across the region rose by more than 30 per cent to reach 4.2 million units, accounting for 28 per cent of total new car sales. The growth was largely driven by stricter European Union carbon dioxide emission regulations, supportive clean mobility policies and growing consumer demand. The report estimates that by 2026, one in every three cars sold in Europe will be electric.
The analysis also noted the dominant role of China in global EV manufacturing. Chinese automakers supplied nearly 60 per cent of electric cars sold worldwide, while European and North American manufacturers each accounted for around 15 per cent of global sales.
In India, EV adoption remains modest but is showing signs of acceleration. EV sales in the country rose 75 per cent year-on-year in 2025 to reach about 165,000 units, representing nearly 4 per cent of total car sales. Domestic manufacturers Tata and Mahindra accounted for around 60 per cent of India’s electric car sales.
The report noted that Africa’s EV market remains relatively small but is expanding steadily. Electric car sales across the continent increased from around 4,000 units in 2023 to nearly 25,000 units in 2025. Egypt, Morocco and South Africa together accounted for nearly 70 per cent of regional EV sales, while countries including Ethiopia, Mauritius, Rwanda and Nigeria also recorded progress.
Despite the positive long-term outlook, the report highlighted a slowdown in global EV sales during the first quarter of 2026. Worldwide electric car sales fell by around 8 per cent year-on-year to 3.9 million units between January and March, mainly due to weaker demand in China and the United States. In contrast, Europe and emerging Asian markets continued to record strong growth.
According to the IEA, falling battery prices, expanding charging infrastructure, supportive government policies and high fuel prices are accelerating the shift towards electric mobility. In 2025 alone, nearly 1.8 million new public charging points were added globally, taking the worldwide total to more than 7 million charging stations.