Global EV sales surge on Middle East crisis, with record highs in March and April

2026-06-02

Global EV sales surged amid the Middle East crisis. Thirty-seven countries posted record monthly sales in either March or April, while the number of countries where EVs accounted for more than 10% of new-car sales reached 38. Rising fuel prices have renewed appreciation for lower running costs.

Record highs reported across regions

Based on data from S&P Global Mobility, 28 of the 150 countries surveyed, including Australia and Britain, set record highs in March, while nine countries, including Brazil and the Philippines, did so in April. In both March and April, 91% of countries exceeded the same month a year earlier, the first time since April 2023 that more than 90% of countries posted sales growth.

In South Korea, which relies heavily on Middle East crude, EV sales in March and April combined rose 2.4 times from a year earlier to 80,000 units, lifting the adoption rate by 14 percentage points to 26%. Southeast Asia posted a 40% rise to 90,000 units, with a share of 16%. The European Union also recovered from a temporary slowdown, with sales up 40%.

China and the United States decline

China, meanwhile, saw sales fall 8% to 1.33 million units. The decline reflected cuts to tax incentives for EVs in January, though the EV share rose 5 percentage points to 42% in March and April on weaker overall auto demand. The United States, where subsidies are set to end in September 2025, also slumped, with sales down 20%.

Weakness in China and the United States limited global growth to 8%, but excluding the two countries, sales in the remaining 148 countries rose 50%, and the share reached a record 12%. The number of countries where adoption exceeded 16%, seen as a tipping point for broader uptake, rose to 28.

Sales rise in Japan, while Chinese firms expand exports

In Japan, gasoline prices are kept down by subsidies, but EV sales in March and April rose 50%. Growth was driven partly by the effect of subsidies updated in January, though the share remained at 2%.

In a report in May, the International Energy Agency said the response to the current energy crisis 'will shape the world auto market for years to come.' Just as the oil shocks of the 1970s helped spur the spread of Japanese cars, greater acceptance of EVs could keep sales rising even after tensions in the Middle East ease.

In China, exports of new energy vehicles, including EVs and plug-in hybrid vehicles (PHVs), are also expanding. According to a Chinese industry group, export volume in April rose 70% to 900,000 units. New energy vehicles more than doubled to 430,000 units and accounted for almost half of the total. According to the IEA, 55% of EVs and PHVs sold in 2025 in markets outside the United States, Europe and China were imported from China. In Southeast Asia, low-priced EVs from Chinese companies are beginning to take share from Japanese cars.

As EV demand cools in the United States, automakers including Honda have booked losses related to EVs. However, worldwide, the EV shift is entering a new phase, making it even harder for companies to respond to differing market conditions across regions.

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