“Cheaper to run:” Global EV numbers surge above 20 million despite slowdown in biggest markets

Global electric vehicle (EV) sales have surged past 20 million in 2025, driven largely by soaring petrol prices and ongoing oil supply disruptions. According to the International Energy Agency’s (IEA) Global EV Outlook 2026 report, electric cars are on track to account for nearly 28 per cent of all new car sales worldwide next year, with projections indicating they could represent half of all vehicles sold by 2035. The report highlights a significant shift in consumer behaviour, as motorists increasingly turn to EVs to avoid the volatility and high costs associated with fossil fuels. Europe led the growth in EV adoption, recording a 30 per cent increase in sales, while Southeast Asian markets such as Vietnam, Indonesia, and Thailand more than doubled their electric car purchases. In contrast, sales growth in the United States remained steady, and China saw a slight slowdown despite EVs comprising over half of all vehicle sales there. IEA executive director Fatih Birol described 2025 as a pivotal year, noting that nearly 100 countries set new records for electric car sales, signalling a broader transformation in both the automotive industry and global energy systems. Australian drivers have been particularly affected by rising fuel costs, with petrol prices increasing by 34 per cent in April compared to the previous year. This has made electric vehicles a more attractive option, with local motorists potentially saving around US$490 (approximately AUD 688) annually by switching to EVs. The surge in demand was reflected in a record number of electric and hybrid vehicles sold in Australia during March and April, with EVs making up over 16 per cent of new car sales in April alone. Industry experts caution, however, that the momentum behind EV adoption could be influenced by policy decisions such as fuel excise cuts and fluctuations in electricity prices. Aman Gaur, policy head at the Electric Vehicle Council, emphasised that while EVs offer a cheaper and more sustainable alternative to petrol vehicles, ongoing government support and stable energy costs will be crucial to maintaining growth. The IEA report underscores the importance of these factors as the world navigates the transition towards cleaner transport amidst persistent energy challenges.