Worldwide electric vehicle sales are projected to reach a record 23 million units in 2026, even as the broader automobile market faces declining demand and economic uncertainty.

A report by the International Energy Agency said electric cars could account for 29 per cent of all new vehicle sales this year. The forecast comes despite an expected two per cent drop in total global car sales, rising production costs and disruptions linked to geopolitical tensions and energy market instability.

Africa emerged as one of the fastest growing markets during the first half of 2026. Sales on the continent more than doubled to over 30,000 units, led by South Africa, where purchases increased more than fivefold, and Egypt, where sales more than tripled. Nigeria was not identified among the strongest performing markets.

The agency linked the growth to concerns about fuel security, volatile oil prices and expanding government support. Kenya, for example, waived import duties on 100,000 electric vehicles, while Rwanda directed public institutions to ensure that at least 30 per cent of newly acquired vehicles are electric.

More than nine million electric cars were sold globally in the first six months of the year, including over five million in the second quarter. Although first half sales were slightly below the corresponding period of 2025, electric vehicles still represented 24 per cent of all new car purchases, one percentage point above the previous year.

Sales increased in more than 90 countries. Latin America recorded more than a twofold rise, India grew by over 90 per cent and Southeast Asia expanded by about 75 per cent. Australia, Brazil, India, South Korea and Vietnam also experienced sharp increases after the latest energy crisis intensified.

China remained the dominant global producer, although its domestic car market weakened considerably. Total vehicle sales in the country fell by more than 20 per cent in the first half of 2026, but electric models still accounted for over 60 per cent of purchases. Chinese vehicle exports rose by 65 per cent, while electric car exports increased by more than 120 per cent.

The IEA said China’s advantage is supported by integrated supply chains, strong battery manufacturing and production costs estimated to be about 35 per cent lower than those in advanced economies. Chinese manufacturers now hold a major share of electric vehicle markets across Africa, Latin America and Southeast Asia.

In South Africa, Chinese built vehicles account for roughly 90 per cent of new electric car sales. Outside Europe and the United States, Chinese imports represent about 55 per cent of the market.

The agency said future competitiveness in the automobile industry would depend increasingly on battery production, software capacity and resilient supply chains rather than traditional engine manufacturing.