KATHMANDU: ICE-powered vehicles accounted for less than half of global new-vehicle sales for the first time in the first half of 2026. Higher oil prices and lower running costs helped increase demand for electric vehicles, according to Nikkei.
Data from Mobility Global shows ICE car sales fell 10% year-on-year to 20.25 million units between January and June. Their share of global new-vehicle sales fell to 49%. It was 52% a year earlier and 73% in 2021.
Higher oil prices following the conflict in the Middle East affected demand for ICE cars. Rising fuel costs and concerns over fuel supplies also played a role. ICE car sales fell 26% in China and 13% in Europe.
EV sales increased 12% to 6.87 million units during the same period. Their share of global new-vehicle sales rose to 17%, up from 14% a year earlier.
China remains the biggest EV market. It accounted for about half of global EV sales, with 3.44 million units sold. However, sales fell 3% after tax incentives were reduced from January.
EV sales in North America also fell 15% after changes to US incentives. Europe, however, saw strong growth. EV sales rose 32% to 1.81 million units.
EV sales also overtook ICE car sales in the first half of the year across 31 major European countries.
Southeast Asia recorded even stronger growth. EV sales jumped 81% to 350,000 units. Sales in Oceania more than doubled to 110,000 units.
Chinese brands such as BYD and Geely are also expanding their EV exports. According to the International Energy Agency (IEA), Chinese automakers account for around 60% of global EV and plug-in hybrid sales.
Mobility Global expects EVs to make up more than 30% of global vehicle production by 2030. This would put EVs ahead of hybrids and ICE-powered vehicles.
Hybrid vehicles are also gaining ground. Global hybrid sales rose 10% to 7.27 million units in the first half of 2026. They accounted for 18% of global new-vehicle sales.
