EVs (Almost) Everywhere

Much of the rest of the world is going electric. Here? Well. . .

By Gary S. Vasilash

At the risk of being political, Donald Trump needs to be credited with the global rise in electric vehicles in the first half of 2026.

“Wait!” you insist. “The elimination of the $7,500 tax credit last September caused the sales of EVs to plummet in the U.S. such that even the slightest bump of sales are now treated as a bigger comeback since the 2004 Boston Red Sox vs. the Yankees in the fourth game of the ALCS.”*

Yes, U.S. sales aren’t what they were and certainly not what they had been expected to be. And yes, we often like to find a silver lining wherever we can.

But if you read that first sentence closely you’ll see the word global.

The International Energy Agency’s (IEA’s) recently released “Electric Car Markets in a Time of Uncertainty” points out that because vehicles account for about half of global oil use and because there are “fuel price spikes and supply disruptions,” “Policy and industry responses to the energy crisis—especially those related to EVs—have the potential to further accelerate changes in a global car industry that is already in flux.”

Arguably Donald Trump’s war on Iran is the direct cause of “fuel price spikes and energy disruptions,” not only in the U.S., but on a global basis.

Consequently the IEA found “Electric car sales rebounded in the second quarter of 2026, even as global car sales declined.”

Again, keep your eye on the global:

“Overall, EVs accounted for 24% of global car sales.”

And that’s despite the fact that “The pace of recovery of the Chinese car market remains the main constraint on global sales growth.”

In the first half overall sales declines in China and the U.S. contributed to an overall decline in vehicle sales of 5% compared to the same period in 2024.

But the IEA found:

“In Australia, Brazil, India, Korea and Viet Nam – all sizeable electric car markets – sales have roughly doubled since the beginning of the energy crisis, compared with the same period (March-June) in 2025.”

Presumably this doubling has something to do with the energy crisis that is predicated on the situation in the Strait of Hormuz, a situation that didn’t exist in 2025.

And while it is the case there is no federal policy support for EVs in the U.S., that’s not the case elsewhere. The IEA finds that since the start of the war there have been EV-related policy announcements made in Australia, Cambodia, Lao PDR, Thailand, Viet Nam, the European Union, France, Hungary, Ireland, Netherlands, Spain, U.K., Kenya, Rwanda, Brazil, and Chile.

The U.S. does make the list: California initiated a rebate for first-time EV buyers of $3,500.

The IEA:

“Together with strong second-quarter market momentum and policy support for EVs in Latin America, Southeast Asia and Europe, these trends support the expectation that electric car sales will grow around 10% this year, compared to 2025.”

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One of the consequences of this growing demand in other parts of the world is a strengthening of Chinese EV manufacturers that are exporting a tremendous number of vehicles.

According to the China Association of Automobile Manufacturers, during the first half of 2026 Chinese companies exported 1.43 million battery electric vehicles.

In western Europe, the European Automobile Manufacturers’ Association (ACEA) calculated that in the first half of 2026 there were 1,220,890 new EV registrations. Of that number, the ACEA says Chinese brands represent 24.5%.

Presumably that’s good business given the decline in sales in China.

Consider the U.K. where, according to the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicles account for 25% of the total vehicle market in the first half of 2026.

Of the top 10 vehicles sold during this period in the U.K.—all types of propulsion systems included—there are two Chinese vehicles: the Jaecoo 7 in third place and the MG HS at seven. There is just one other EV on the list—the Tesla Model Y, back in 10^th place.

That tenth-place finish is still good given that the vehicle in first place is the Ford Puma, which has a starting price of £26,900 in the gasoline version and £26,245 in the Gen-E, fully electric trim, compared to the Model Y’s £41,990. Yes, affordability isn’t just a U.S. thing. Why does the electric Puma cost less than the gas-powered one? Because of a £3,750 government grant, which the Model Y doesn’t qualify for because it is above the government’s £37,000 price cap.

Why might EVs have the popularity in the U.K. that they evidently do? Because before Operation Epic Fury was launched in late February gasoline cost 132 p/liter and now it is up to 160p/liter—or from $1.78 to $2.16.

And to spare you the liters-to-gallon calculations: If a vehicle in the U.K. has a 15-gallon gas tank, it cost $101.07 to fill it and $122.65 now.

Easy to understand the U.K. market is 25% EV.

In the U.S.? Just under 6%.

Large parts of the rest of the world are promoting electric vehicles. This works to the advantage of China, which is not only the world’s largest car market, but the world’s largest car exporter. And the IEA found that “the share of electric cars in China’s car exports rose from around 35% in 2025 to more than 45% in the first half of 2026.”

Although Elon Musk is perhaps an even more controversial figure than Donald Trump, were it not for Tesla the U.S. would be nowhere in the EV space. Clean Technica ran numbers of global EV sales from January to April 2026. At the top was China’s BYD with 15.1% of the global market, followed by Tesla with 8%. The 18 brands that follow are absent Ford and General Motors.

One could argue that while Musk is becoming more interested in things that aren’t vehicles and that other OEMs—and not just Chinese ones, as Volkswagen is in fourth place on the Clean Technica list and BMW in fifth; Toyota is at 8 and Kia at 9—are upping their game when it comes to what they are offering in the way of EV capabilities and amenities. Tesla may slide down that list.

So where does this put the U.S. from a technological standpoint? Behind.

Certainly the war in Iran with the consequence of elevated oil prices has caused an increase in global interest on electric vehicles. But the momentum for EVs has been growing in countries other than the U.S. that is only amplified by the cost at the pump.

The war will end. The price of gasoline will moderate. But in all likelihood, there will still be more EVs as a percentage of sales elsewhere than in the U.S. because there will be an incentive for OEMs to offer better and more value-oriented EVs (not just cheap EVs but expensive EVs that provide remarkable features).

In the short term, the lack of a U.S. federal program or policy to support the development and purchase of EVs probably doesn’t matter much. But at some point—say in the mid-term—competitors from other countries are going to have the goods when it comes to EVs and Americans will want them.

And then what?

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*For those of you who aren’t baseball fans: Boston was in the playoffs with the Yankees to go to the World Series. In the best-of-seven game matchup, Boston was down 3 games to 0, meaning if it lost the game in question, it would be out. At the bottom of the ninth inning it was down 4 to 3. But it came back and beat the Yankees 6 to 4 in the 12th. What’s more, it ended up winning the playoffs, went to the World Series, and won. OK. Maybe a percentage point or two rise in the share of the US EV market isn’t treated like it is quite that amazing, but there is still often a bit too much weight given to what occurred.