In the first half of 2026, global gasoline car sales involving purely internal combustion engines fell to 49% of all new vehicle deliveries. According to Nikkei Asia, this marks the first time since the 1920s that pure petrol vehicles have represented less than half of the worldwide automotive market.
Over the six-month period, the market share of gasoline cars declined by 3 percentage points year-on-year, with delivery volumes falling 10% to 20.25 million units. Just five years earlier, in 2021, pure gasoline models commanded 73% of global sales.
High Oil Prices and Battery Costs Drive the Shift
Nikkei attributes this market adjustment largely to elevated crude oil prices amid conflict in the Middle East. Rising fuel prices have substantially increased the day-to-day operating costs of conventional vehicles.
Yoshiaki Kawano, an analyst at Mobility Global, observed that while interest in hybrid models expanded after electric vehicle subsidies expired in 2024, persistent fuel costs have prompted consumers to reconsider the lower running expenses of full EVs.
Declining battery manufacturing costs are providing additional momentum. Data from BloombergNEF indicates that average battery pack prices reached $99 per kilowatt-hour in 2025, remaining below the critical $100 threshold for the second consecutive year.
Regional Surges: Europe, Southeast Asia, and Oceania
According to data published by the Seoul Economic Daily, global EV sales rose 12% to 6.87 million units in the first half of 2026. This pushed the electric share of total new vehicle sales up by 3 percentage points to 17%.
In Europe, EV registrations rose 32% to 1.81 million units. Over the half-year timeframe, electric models outsold gasoline vehicles across 31 major European countries for the first time.
Other regional markets also recorded notable growth. Southeast Asia saw 350,000 EV deliveries, representing an 81% year-on-year gain, while Oceania experienced a 2.2-fold increase to 110,000 units. Over the same timeframe, sales of gasoline-powered vehicles contracted by 26% in China and 13% across Europe.
Policy Adjustments in North America and Market Realities in China
Market dynamics in several key territories were influenced by regulatory changes. In North America, the phaseout of federal tax incentives hindered demand; figures from Benchmark Mineral Intelligence show electric vehicle sales fell 25% year-on-year across the first five months of 2026.
In China, electric vehicles were subjected to purchase taxes for the first time since 2014, alongside less generous trade-in incentives. The China Passenger Car Association (CPCA) reported that retail sales of new energy vehicles (NEVs) fell 13% to 4.73 million units in the first half of the year.
Despite this near-term adjustment, long-term projections for China remain robust. Speaking at the APPEC conference in Singapore, Feiyi Wang, vice president of the Sinopec Research Institute, stated that combined sales of battery EVs and plug-in hybrids (PHEVs) could account for 75% to 80% of all new vehicle sales in China by 2030. In July 2026, that share reached 65%, up from 53% twelve months earlier.
