Australia and New Zealand have been ranked among the two fastest growing electric vehicle markets in the world since the start of the Iran war in late February triggered a fossil fuel supply crisis that is still being felt across the globe.
The European energy and climate think tank Ember this week published a new analysis that shows that in the six months since the Hormuz energy crisis erupted, electric car fleets in oil-importing countries are estimated to have displaced 200 million barrels of crude oil, with a value of $US20 billion ($A29 billion).
Fully electric cars (BEVs) are responsible for the largest share of this figure ($16.5 billion), with the rest coming from plug in hybrids. The savings from PHEVs could have been more but there is real-world evidence that drivers end up relying on their internal combustion engines more than manufacturers initially claim.
The biggest savings from oil imports were in China, accounted for $US14 billion of this total, followed by the EU with $US3.1 billion, with the biggest savings in the market coming from Germany and France, at around $US760 million and $US560 million respectively.
As a percentage of oil displacement compared to each country’s oil consumption, Denmark emerges as a clear frontrunner electric cars displaying 13% of the country’s oil consumption in 2025. Savings in Australia from electric cars are put at $US220 million.
“The impact of the Hormuz energy crisis on the cost of fuel has resulted in a clear uptick in demand for BEVs from consumers, driving up sales share,” Ember notes. “India, Chile, Australia and New Zealand have all seen sharp increases in BEV sales following March 2026, with consumers heavily affected by rising fuel prices.”
Indeed this table shows Australia’s EV market grew 136 per cent in the six months from the start of March to the end of August, and Australian data shows that the surge in EV sales continued into September, the second month in a row that EVs accounted for nearly one in four new car sales. Only New Zealand had stronger growth in percentage terms.
But big things are happening in other markets.
“Many countries with rising EV sales are simultaneously developing new manufacturing capacity and growing their domestic electric vehicle industries,” Ember reports.
“The rise in electric vehicle sales in the EU this year has been met in large part by new affordable models from European manufacturers. New models by Renault, Volkswagen and Skoda were the best-selling electric cars in Europe in July.
“In Asia, domestic manufacturers are becoming major players in Vietnam and India. VinFast already produced Vietnam’s most popular car in 2025 and has expanded its production operations overseas opening new factories in India and Indonesia last year. Meanwhile, in the first half of 2026, domestic OEMs Tata and Mahindra made up over 60% of India’s EV sales.
In Latin America, Ember says, Brazil is cementing its position as a regional manufacturing hub with the opening of BYD’s plant in 2025, with production capacity expected to be increased to 300,000 vehicles annually.
“New local content requirements are successfully driving this investment. Mexico announced the launch of domestic manufacturer Olinia this year, with production of its small car EV slated to begin in 2027.”
And, ironically, it is the US which is suffering most, having rolled back its federal support for electric vehicles last year, and where the share of EVs in light-duty vehicle sales fell to just 6% in the first eight months of 2026.
Ember says that of the 56 countries tracked in Ember’s monthly EV sales tracker, 49 are now ahead of the US for BEV sales share. Fifteen countries overtook the US for the first time this year, including Brazil, India, Italy, Malaysia and New Zealand.
The top countries by market share of EVs over the last 12 months are led by Norway with 97.8 per cent full battery electric cars, followed by Honk Kong (90 per cent) and then Denmark (79.8 per cent).
You can find The Driven’s detailed EV sales data for Australia here:Â Australian electric vehicle sales by month in 2026; by model and by brand.
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