Gas Cars’ Dominance Is Fading: Global Sales Fall Below 50% For The First Time Since The 1920s

EVs had the most to gain from the gas cars’ continued decline, with some experts estimating that electric cars will dominate by 2030.

Photo by: Volker Thimm / Pexels

By: Iulian Dnistran

Oct 6, at 6:33am ET

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Traditional gas vehicles now make up less than half of new-car sales globally.
Pure gas models went from having 73% of the world’s car market in 2021 to less than 50% now.
Rising fuel prices and high maintenance costs are driving buyers toward EVs and hybrids.

After a century of dominance, gas-only vehicles now account for less than half of global new-vehicle sales. High oil prices triggered by the conflict in the Middle East have prompted more and more car buyers to ditch traditional combustion cars for EVs or hybrids.

Gas-only vehicles accounted for 49% of all new-vehicle sales around the world in the first half of the year, excluding hybrids and other electrified models, according to data from Mobility Global quoted by Nikkei Asia.

Affordable models like the Renault 5 E-Tech have boosted European EV sales.

Photo by: Andrei Nedelea

It’s the first time that gas cars have had less than 50% of the global market share since the technology went mainstream in the 1920s, spurred by the widespread adoption of Tetraethyllead, the additive that created leaded gasoline. Despite the health hazards associated with the additive, it boosted combustion engines’ compression, which in turn led to more performance and increased fuel efficiency.

Pure gas vehicles held 73% of the global new-car market in 2021, but sales have tumbled since then. In the first half of the year, automakers sold 20.25 million units worldwide, 10% fewer than during the same period last year.

Most people who ditched gas cars went for EVs or hybrids. Despite what’s going on in the United States, electric cars are experiencing huge growth in popularity elsewhere. China buys half of all EVs globally, though the market has slipped 3% to 3.44 million units after incentives were scrapped in January. Closer to home, EV sales in North America went down 15%.

Meanwhile, Europe and Southeast Asia are leading the way in the electrification game. Europeans bought 1.81 million EVs through the first six months of the year, 32% more than last year, while Southeast Asian sales jumped 81% and reached 350,000. In Oceania, EV sales more than doubled to 110,000.

"EV adoption slowed [around 2024], and hybrids grew due to subsidy cuts and other factors, but higher oil prices have renewed appreciation for EVs' lower operating costs, and sales are now growing again," said Yoshiaki Kawano, Mobility Global associate director.

Overall, global EV sales reached 6.87 million, an increase of 12% over the same period last year, while hybrids rose 10%, reaching 7.27 million units.

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According to Mobility Global, EVs accounted for 17% of all new-vehicle sales, which is still a long way from gas cars’ 49%, but analysts estimate that things won’t stay the same for long. By 2030, EVs are poised to exceed 30% of total vehicle production, overtaking hybrids and pure combustion-powered vehicles, including diesel.

“Few EV buyers return to gasoline vehicles or hybrids, and as prices continue to fall, demand driven by genuine consumer needs rather than subsidies is likely to expand," Kawano said.