Australia among leaders in global EV boom

Australia has been singled out as one of the world's strongest-performing electric vehicle markets, with a new International Energy Agency (IEA) report revealing local EV sales roughly doubled in the second quarter of 2026 compared with the same period last year.

The findings come as volatile fuel prices linked to the Middle East energy crisis push more buyers towards electrified vehicles, a trend already reflected in recent carsales VFACTS reporting.

According to the IEA's latest Electric Car Markets in a Time of Uncertainty report, Australia joined Brazil, India, Korea and Vietnam among the standout performers for EV growth during the second quarter of 2026.

The report found global vehicle sales fell around five per cent year-on-year in the first half of the year as demand weakened in China and the United States.

EV sales also slipped during the first quarter before bouncing back strongly between April and June.

Globally, electric vehicle sales increased 35 per cent compared with the opening quarter of 2026, reaching record second-quarter levels across 50 countries. More than 90 countries recorded year-on-year growth.

The IEA also increased its global EV forecast, now expecting electric vehicles to account for 29 per cent of all vehicle sales in 2026, up from the 28 per cent projection published in May.

The findings mirror trends already emerging in Australia.

As reported in carsales' July VFACTS coverage, electrified vehicles, including EVs, hybrids and plug-in hybrids, accounted for 48.4 per cent of all new vehicles delivered during the month.

More than 52,500 of the 108,577 vehicles registered in July featured some form of electrification.

High fuel prices amid the ongoing unrest in the Middle East were identified as a key driver of changing buying habits and growing demand for electrified vehicles, a trend also reflected in recent Australian sales data.

Chinese EV brands have also become a growing force locally.

July sales figures showed BYD reached 7857 deliveries for the month and more than 60,000 sales year to date, while Chinese-made vehicles accounted for roughly 35 per cent of all Australian new-car sales during July, according to carsales recent VFACTS analysis.

The IEA believes Chinese manufacturers are likely to play an increasingly important role globally as exports continue growing rapidly, particularly across emerging markets.

While the IEA expects weaker demand in China to limit overall global EV growth this year, the broader outlook remains positive.

The agency estimates more than 1 million Chinese-built EVs remain available for sale in overseas markets after exports accelerated during the first half of 2026. Combined with continuing policy support across Europe, Latin America and South-East Asia, that could place additional pressure on traditional car-makers while increasing consumer choice.

For Australia, the trajectory appears clear.

With electrified vehicles already approaching half of all monthly registrations and Chinese EV brands rapidly gaining market share, the latest IEA research suggests local buyers are part of a broader global shift that continues to gather momentum.

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