Global electric vehicle sales have surpassed 20 million units for the first time, with rising fuel prices and oil supply disruptions continuing to push more motorists toward lower-running-cost vehicles.
New figures from the International Energy Agency show EV sales rose by 20 per cent in 2025, despite slower growth in some of the world’s largest markets.
The agency’s latest Global EV Outlook 2026 report forecasts that electric vehicles could account for almost one in three new vehicle sales globally in 2026, with sales expected to reach 23 million units next year.
Fuel costs reshape buying decisions
The report comes as motorists in several countries, including Australia, continue to face elevated petrol prices linked to fuel supply disruption and conflict in the Middle East.
Australia recorded strong growth in EV and hybrid sales during March and April, with electric vehicles reaching record market share levels.
According to the report, Australian petrol prices increased by 34 per cent in April compared with the same period last year, pushing estimated annual savings from switching to an EV even higher.
The analysis found Australian motorists could save an additional $688 by moving from a petrol vehicle to a battery electric vehicle.
International Energy Agency executive director Fatih Birol said EV growth continued to accelerate globally despite changing market conditions.
“Electric car sales set new records in close to 100 countries last year,” she said.
“The growing popularity of EVs has marked a major shift for car makers and the energy system as a whole, and it is providing some relief now amid the largest oil supply shock in history.”
Europe and Southeast Asia drive growth
Europe delivered the strongest year-on-year EV growth in 2025, with sales rising by 30 per cent.
Several Southeast Asian markets also recorded rapid expansion, with countries including Vietnam, Indonesia and Thailand more than doubling EV sales volumes during the year.
Growth in the United States remained steady, while sales growth in China slowed slightly, although EVs still represented more than half of all new vehicle sales in the Chinese market.
The International Energy Agency said EVs remain on track to represent half of all vehicles sold globally by 2035.
Australian EV uptake continues rising
Latest industry figures show Australians purchased more than 15,400 electric vehicles in April 2026, representing 16.4 per cent of all new vehicle sales for the month.
Electric Vehicle Council policy head Aman Gaur said the latest figures reflected growing consumer awareness around operating costs and fuel dependence.
“People around the world are making the sensible decision to step into EVs, which are cheaper to run and aren’t dependent on expensive, foreign fuels,” he said.
The report noted future EV growth could still be influenced by policy changes, including fuel excise decisions and electricity pricing trends.
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