Global Gas Vehicle Sales Fall Below 50% for First Time Since 1920s
High oil prices and lower maintenance costs drive buyers toward EVs and hybrids, with Europe and Southeast Asia leading growth.
For the first time since the 1920s, pure gas vehicles account for less than half of global new-car sales. According to data from Mobility Global, combustion-only models represented 49% of the market in the first half of the year, a significant drop from 73% in 2021.
What Happened
The shift marks the end of a century-long dominance for internal combustion engines, which went mainstream in the 1920s due to the adoption of Tetraethyllead. Recent geopolitical tensions in the Middle East have driven up oil prices, prompting consumers to seek alternatives with lower operating costs. In the first six months of the year, automakers sold 20.25 million units worldwide, a 10% decline compared to the same period last year. Of these sales, 6.87 million were electric vehicles (EVs), up 12% year-over-year, and 7.27 million were hybrids, up 10%. EVs currently hold a 17% share of the global market.
Why It Matters
The decline in gas vehicle sales highlights a diverging global market. While EV sales in North America fell 15%, other regions are accelerating their transition. China remains the largest market, accounting for half of all global EV sales, although its volume slipped 3% to 3.44 million units after incentives were scrapped in January. Conversely, Europe saw a 32% increase in EV sales to 1.81 million units, driven by affordable models like the Renault 5 E-Tech. Southeast Asia experienced an 81% surge in EV sales, reaching 350,000 units, while Oceania’s sales more than doubled to 110,000. Yoshiaki Kawano, Mobility Global associate director, noted that while adoption slowed around 2024 due to subsidy cuts, higher fuel prices have renewed interest in the lower running costs of electrified vehicles.
The Bottom Line
Analysts estimate that EVs will exceed 30% of total vehicle production by 2030, overtaking hybrids and pure combustion vehicles. Kawano stated that as prices continue to fall, demand driven by genuine consumer needs rather than subsidies is likely to expand, with few buyers returning to gasoline vehicles once they switch.
