Electric Car Markets in a Time of Uncertainty

Electric Car Markets in a Time of Uncertainty – which builds on the extensive analysis in the IEA’s Global EV Outlook 2026 published in May – examines the latest data on car markets through the first half of 2026.

The conflict in the Middle East and ensuing energy crisis has renewed focus on oil use in road transport as a key energy security consideration. As such, electric vehicles (EVs) are in the spotlight as a component of potential policy responses. While the full effects on the crisis on sales and policies will take time to materialise, the impact could be a further acceleration of ongoing shifts in global car markets towards greater electrification. This could, in turn, accentuate economic security concerns in countries that today have sizeable automotive industries focused on the manufacturing of internal combustion engine cars.

This short report aims to provide market and policy updates from the second quarter of 2026 and discusses the implications. Its themes also build on the 2025 special report, What Next for the Global Car Industry.