Gas cars drop below 50% of global sales for first time as fuel prices spike

Purely gasoline-powered cars made up less than half of global new vehicle sales for the first time in history during the first half of this year.

Driven by a Middle East fuel crisis that has sent petrol and diesel prices soaring, drivers are abandoning traditional internal combustion engines faster than analysts had anticipated.

According to data from automotive analytics firm Mobility Global, sales of traditional petrol-only vehicles fell by 10 per cent between January and June to 20.25 million. That drop shaved three percentage points off their market share, pulling them down to 49 per cent of all new cars sold worldwide.

Why the shift accelerated

While China passed this milestone some time ago—where electric vehicles (EVs) and hybrids now command roughly 55 per cent of the market—the rest of the world has lagged behind. That changed when the crisis in the Strait of Hormuz disrupted global oil shipments, pushing crude prices over $100 a barrel and causing extreme volatility at the pumps.

The shift has been particularly sharp in Europe. Data from the European Automobile Manufacturers’ Association (ACEA) shows that sales of battery electric vehicles (BEVs) across Europe, the UK, Switzerland, and Norway rose by 52.2 per cent in August compared to the same month last year.

In Germany, Europe’s biggest car market, petrol prices hit a record ‐2.31 a litre (the equivalent of about $10 a gallon). In response, German BEV sales jumped 75 per cent in August. An analysis by the German Institute for Economic Research (DIW) found that one in three passenger cars sold in Germany that month was a pure battery EV, up from an average of 19 per cent in 2025.

Global electric vehicle expansion

The International Energy Agency (IEA) reported that global EV sales surged by 35 per cent in the second quarter of the year compared to the first, hitting record highs in 50 countries. In rapidly developing car markets including Brazil, India, Australia, and Vietnam, EV sales roughly doubled between March and June compared to the same period in 2025.

Analysts at Wood Mackenzie expect this fuel-driven shift to have a lasting impact, potentially accelerating the transition of the global passenger fleet beyond previous forecasts.

However, the speed of this transition will still face familiar bottlenecks, including the need for billions of dollars in infrastructure investment and a secure supply of critical battery minerals. Even so, the longer the Middle East crisis keeps fuel prices high, the easier the choice becomes for consumers looking to cut their driving costs.