Gasoline Cars Lose Their Global Majority as Fuel Shock Lifts EV Sales

Cars powered only by gasoline no longer account for most global vehicle sales. Their share slipped below half for the first time as record fuel prices pushed more drivers toward electric options, according to OilPrice (direct). The turning point comes as the war in Iran and disruption around the Strait of Hormuz make the cost of filling a tank a stronger reason to reconsider what to buy.

Between January and June, sales of gasoline-powered vehicles, excluding hybrids, fell 10% from a year earlier to 20.25 million. Their share of global automotive sales dropped three percentage points to 49%, according to figures from automotive data provider Mobility Global, cited by Nikkei Asia and reported by OilPrice. The distinction matters: the milestone concerns gasoline-only vehicles, not all cars that use gasoline. Hybrids combine an engine with electric power.

Fuel bills change the buying decision

China had already crossed the halfway mark for combined hybrid and electric vehicle sales a few years earlier; their share there is now about 55%, OilPrice reported. Elsewhere, electric vehicle uptake had been slower and had fallen short of forecasts. The Hormuz crisis, oil at $100 and record gasoline and diesel prices changed that backdrop, encouraging buyers in Europe, South America and Asia Pacific to look at electric vehicles.

Europe offers a striking example. Sales of battery electric vehicles—cars powered entirely by batteries—rose 52.2% in August from a year earlier across Europe, including the UK, Switzerland and Norway, according to the European Automobile Manufacturers’ Association. Germany, Europe’s largest car market, recorded a 75% increase as gasoline reached a record €2.31 a liter, equivalent to about $10 a gallon. Electric vehicle sales in France more than doubled.

Germany’s shift also coincides with a government purchase premium for electric vehicles introduced in January 2026. An analysis by the German Institute for Economic Research found that battery-only cars represented one in four passenger cars sold from January through August. In August alone, the proportion reached one in three. That compares with an average share of 19% in 2025.

A wider surge, with costly hurdles ahead

The International Energy Agency’s July update to its annual electric vehicle outlook described a sharp rebound after a subdued start to the year. Global electric vehicle sales rose 35% in the second quarter compared with the first, following the Middle East disruption to crude supplies and the resulting rise in oil and fuel prices. The agency linked the rebound to renewed concern about unpredictable fuel costs.

The Middle East war’s energy crisis put fuel-price volatility back at the center of buyers’ attention, according to the International Energy Agency.

Second-quarter electric vehicle sales reached records in 50 countries. In Brazil, India, Australia and Vietnam, sales roughly doubled between March and June compared with the same period in 2025, according to the agency. Across the first half, 90 countries recorded annual growth in electric vehicle sales, showing that the acceleration extended well beyond China and Europe.

Wood Mackenzie analysts expect the faster adoption triggered by higher oil and fuel prices to persist, potentially lifting electric vehicles’ share of the passenger fleet above earlier expectations. But sustaining that shift requires billions of dollars for supplies of critical battery minerals and charging networks, OilPrice reported. The next test is whether that investment can support the momentum—and how long disruption at Hormuz keeps fuel prices strengthening the case for going electric.