Electric car sales rise worldwide: Iran war is driving the transport revolution

Worldwide electric vehicle sales have surged, with the Iran war accelerating the shift toward sustainable transport. Since 2020, the share of electric vehicles among global car sales has risen significantly, driven partly by geopolitical tensions. The International Energy Agency (IEA) has revised its forecast for 2026, projecting that electric vehicles will account for 24 percent of all car sales in the first half of the year, rising to 29 percent by year-end. This marks a sharp increase from just 4 percent in 2020. The growth in electric vehicle adoption has been widespread, with over 90 countries reporting increased sales in the first six months of 2026. The IEA attributes this rise to economic shifts and policy changes triggered by the conflict with Iran. Governments in numerous nations have introduced incentives such as tax exemptions, scrappage bonuses, and infrastructure support to promote electric mobility. Notably, Laos has banned the import of gasoline-powered cars for the remainder of the year. Europe recorded the strongest growth among major markets, with electric vehicle sales up 30 percent compared to the previous year’s first half. Germany led the surge with an additional 140,000 units sold, followed by the United Kingdom with 100,000, France with 95,000, Italy with 75,000, and Spain with 40,000. Smaller markets also saw dramatic increases, with Colombia experiencing a 300 percent rise, New Zealand a 180 percent jump, Uruguay a 170 percent increase, and Singapore a 110 percent boost. Outside the traditional electric vehicle powerhouses, sales in Latin America and Africa more than doubled, while Southeast Asia saw a 75 percent increase. These regions have become increasingly attractive for electric vehicle manufacturers due to growing consumer interest and supportive policies. China, however, reported a nearly 20 percent decline in electric vehicle sales during the first half of 2026. Given that China accounts for roughly half of global electric vehicle sales, this drop had a notable impact on overall trends. In the United States, electric vehicle sales were approximately 25 percent lower than in 2025, largely due to the expiration of a tax credit program at the end of 2025. As a result, the share of electric vehicles in U.S. sales dropped from 10 to 7 percent. The shift toward electric mobility continues despite these regional variations, reflecting broader global efforts to reduce carbon emissions and dependence on fossil fuels. The IEA's updated forecasts highlight the resilience of the electric vehicle market even amid economic uncertainties and political conflicts. As governments continue to implement measures to encourage cleaner transportation, the transition to electric vehicles appears to be gaining momentum worldwide.