Fuel Price Shock Pushes Global Gas Car Sales Below 50% for First Time
The share of gasoline cars in global vehicle sales fell below 50% for the first time ever as the Hormuz shock and the resulting record-high fuel prices accelerated the previously sluggish shift toward EVs outside China. A few years ago, China blew past the threshold of 50% of all car sales being hybrids and EVs, and the share is now about 55%. But the rest of the world didn’t follow until the…
As the Hormuz crisis and surging fuel prices have pushed the share of gasoline cars in global vehicle sales below 50% for the first time, the shift toward electric vehicles (EVs) has accelerated outside China. China had already surpassed the 50% mark a few years ago, with EVs accounting for about 55% of new car sales. However, the rest of the world has only recently begun to catch up due to the disruption of fuel markets.
Data from Mobility Global shows that global sales of EVs are far from the Chinese figures, but the rapid shift toward EVs has been driven by the sharp increase in gasoline and diesel prices. The surge in gasoline prices this year led to a 10% drop in sales of gas-powered vehicles between January and June, with 20.25 million gas-fueled cars sold, representing 49% of total global automotive sales. This marks the first time the share of gasoline-fueled cars has fallen below 50%, ever.
Meanwhile, EV sales have seen a surge in Europe, with a 52.2% increase in August compared to a year earlier. Germany saw a 75% jump in August, with record-high gasoline prices prompting drivers to opt for battery and hybrid vehicles. In France, EV sales more than doubled. In Germany, where a purchase premium for EVs began in January 2026, sales are accelerating, with one in every three passenger cars sold being a BEV, compared to an average of 19% in 2025.
Globally, EV sales have surged this year following disruptions in the Middle East oil supply and a second oil price shock in four years. The International Energy Agency (IEA) reported that EV sales rebounded sharply in the second quarter, rising by 35% compared to the first quarter as drivers preferred electric vehicles amid soaring fuel prices. EV sales reached record-high levels in 50 countries as drivers opted for electric vehicles amid record-high fuel prices.
The trend toward EV adoption is expected to continue and could push the share of EVs in the passenger fleet above earlier predictions, according to analysts at Wood Mackenzie. However, challenges remain, including the need for billions in investments in battery mineral supply and charging networks. The longer the Hormuz crisis impacts global fuel markets, the stronger the case for EV adoption is likely to become.
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