A report published by Nikkei Asia revealed that petrol-only vehicles made up less than 50 per cent of the global market in H1 2026.
Analysing the market
For the first time in history, petrol-only internal combustion engine (ICE) vehicles made up less than half of the global automotive market. According to an analysis by Global Mobility, total of 20.25 million petrol engine vehicles was sold for the first half of 2026, dropping 10 per cent year-on-year and accounting for only 49 per cent market share. This is a noticeable change from 2021, when ICE vehicles composed 73 per cent of the global market.
Hybrid vehicles, on the other hand, accounted for 18 per cent of global new-vehicle sales, with sales up 10 per cent year-on-year to 7.27 million. Battery electric vehicle (BEV) sales reached 6.87 million, surging by 12 per cent and making up 17 per cent of the global market. BEVs’ market share exceeded what experts refer to as “the tipping point of mass adoption.”
The global shift
Experts point to rising oil prices as a major factor in the sharp decline in popularity of ICE vehicles. World events such as the US-Iran War and the closure of the Hormuz Strait have created a strain on oil as a resource worldwide. The data reflects growing consumer preference for alternative fuel and/or low-emission vehicles.
“EV adoption slowed [around 2024] and hybrids grew due to subsidy cuts and other factors, but higher oil prices have renewed appreciation for EVs’ lower operating costs, and sales are now growing again,” said Yoshiaki Kawano, Mobility Global’s Associate Director.
“Few EV buyers return to gasoline vehicles or hybrids, and as prices continue to fall, demand driven by genuine consumer needs rather than subsidies is likely to expand,” Kawano added.
As overall BEV sales rise, results vary in different regions of the world. Around 50 per cent of H1 2026 BEV sales came from China, down 3 per cent YoY to 3.44 million. The slight drop can be traced to reduction or expiry of some EV incentives earlier this year.
Southeast Asia’s BEV sales surged by 81 per cent to 850,000 in H1 2026. The increase in EV adoption in the region can be attributed to several factors. First, there are various financial incentives for both buyers and manufacturers in the region. Second, several governments in the region have introduced policies supporting electrified and lower-emission vehicles. Third, several foreign EV manufacturers such as Chery and BYD have also established facilities of their own in the region. Lastly, the rise of regional automakers producing their own EVs has made these vehicles more accessible and affordable for consumers.
BEV sales rose 32 per cent in Europe and more than doubled in Oceania In Europe, specifically, EVs outsold petrol vehicles in 31 major countries. Meanwhile, in North America, BEV sales dropped by 15 per cent YoY with the US’ current administration ending financial incentives for EVs last year.
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