Expensive oil leads to record low gas car sales replaced by anything with a battery

The relentless rise in crude oil and refined fuel prices since the beginning of 2026 has led to a record low in the sales of gas-powered cars. Vehicles that are propelled only by an internal combustion engine running on gasoline, like most of those sold in the US, now comprise less than half of global sales for the first time.

Meanwhile, cars with batteries in them, regardless of whether they are pure electric vehicles or hybrids, are on a relentless sales rise. Pure gasoline cars made up only 49% of global new vehicle sales in the first half of 2026, according to new data from research firm Mobility Global.

That is the first time gas-powered cars have dipped under 50% since cars became commonplace in the 1920s. The speed of the shift is rather astounding, given that just five years ago gasoline cars held a 73% share of the global market.

The larger share of vehicle sales worldwide now belongs to fully electric cars, electric vehicles with extended range (EREV), and assorted hybrids, plus vehicles running on diesel and other fuels. In other words, this does not mean half of all new cars sold are EVs. The analysts expect electric vehicles to make up more than 30% of global car production by 2030, so the battery-propelled revolution has plenty of road left.

China has been the main driver of the shift, with "new energy" vehicles now taking a majority of the sales there, while European buyers keep warming to hybrids and EVs as well. Higher oil prices, cheaper batteries, a wider choice of models, and tighter emissions rules are all pulling in the same direction.

Of course, the transition is uneven. Some markets, the US among them, are moving far more slowly, and gas cars are not going anywhere soon, with millions sold every month. Globally, however, the long-time default dropped below the halfway mark for the first time, and, if elevated oil prices are here to stay, it may indicate that the industry's center of gravity has already shifted towards anything with a high-voltage battery in it.