The electric vehicle market is gaining market share…

EVs have come a long way in five years
EV share of total vehicle sales by region, 2020 vs. 2025Source: Chart data and other referenced statistics from International Energy Agency Global EV Update, July 2026.

The spike in oil and gasoline prices, along with weaker consumer demand in China,  has been a drag on global vehicle sales so far this year. Total vehicle purchases are down 5% from a year ago. Electric vehicle (EV) sales, however, are up about 4% over the same time period. EVs account for 25% of all vehicles sold worldwide so far in 2026.

The chart shows that EV adoption is rising in every region, though at very different rates.  Globally, EVs have grown from 4% to 25% of total vehicle sales over the last five years. Growth in China has been explosive. EVs now represent a majority of sales there, and more than a quarter of European car purchases. In the US, EV market share has quintupled in this time period, but represents just 10% of all sales.

Much of the increase in EV adoption reflects the production and export of lower cost vehicles made in China. In the US, steep tariffs and other restrictions have effectively blocked Chinese EVs from the US market. Europe, meanwhile, recently raised tariffs on Chinese EVs to support domestic producers. Despite the twists and turns, the trend toward EVs is clear. Global sales of internal combustion engine vehicles peaked in 2017.

What we’re watching this week

Wednesday: The Federal Reserve announces its interest rate decision.

Thursday: The Fed’s preferred inflation measure, September core PCE, is released.

Throughout the week: AI hyperscalers Microsoft, Alphabet and Amazon report third quarter earnings.