The International Energy Agency says rising oil prices, triggered by the Middle East conflict and disruptions to crude shipments through the Strait of Hormuz, have accelerated global demand for electric vehicles.
Soaring fuel prices due to the Mideast war have supercharged sales of electric cars in the second quarter, the International Energy Agency said Thursday.
Electric vehicle (EV) sales jumped 35 per cent in the second quarter from the first three months of this year, hitting records in 50 countries, the IEA said in a new report.
“Despite a challenging backdrop for the global car market, sales of electric cars surged in the second quarter of this year as the energy crisis sparked by the war in the Middle East brought fuel price volatility back into sharp focus,” it said.
Crude oil prices soared from around $60 a barrel at the start of the year to nearly $120 after Iran effectively closed the Strait of Hormuz — through which a fifth of the world’s oil normally transits — after Israel and the United States launched attacks in February.
Soaring oil prices and supply shortages brought energy security to the forefront, and with road vehicles accounting for half of global oil use, EVs offer means to reduce dependence on imported fuel.
“Today, electric vehicles are in the spotlight as part of potential policy responses, thanks to the opportunity they present to enhance energy security for oil-importing countries while at the same time shielding consumers and businesses from price fluctuations,” the IEA said.
It noted several particularly hard-hit oil-import-dependent countries in Southeast Asia introduced temporary tax breaks to encourage purchases of electric vehicles.
Building on the momentum from the second quarter as well as government support for buying EVs in Latin America, Southeast Asia and Europe, the IEA said that it expects electric car sales will grow 10 per cent this year and account for 29 per cent of total car sales.
The overall car market is expected to decline in 2026.
Sales of electric vehicles plummeted in the first quarter of the year, mostly due to China and the United States.
While the removal of subsidies hurt sales in the US, the struggling economy held back Chinese buyers, especially as it cut back subsidies as well.
With China being the biggest market for EVs, a decline there masks strong growth elsewhere in overall figures.
The IEA said Europe recorded the strongest growth in EV sales in the first half of this year, climbing by more than 30 per cent.
