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Electric cars saved $20B in oil – and the US is falling behind
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Electric cars in oil-importing countries displaced an estimated $20 billion worth of crude oil between March and August, according to new analysis from energy think tank Ember. The savings came as the Hormuz energy crisis disrupted supplies, leaving countries less dependent on volatile oil markets. Ember estimates that electric car fleets avoided about 200 million barrels of crude oil during the six-month period. China accounted for most of that avoided consumption, at roughly $14 billion, while European Union countries saved another $3.1 billion, led by Germany and France.
'The countries that invested in electric vehicles before this crisis are now better protected, and a growing number are following,' said Euan Graham, senior energy analyst at Ember. He added that every electric car on the road reduces exposure to volatile oil markets, and that as fleets grow, so does protection against future supply shocks. Graham said the benefits of the global shift to electric cars extend beyond cutting emissions, with implications for energy security, economic resilience and how countries position themselves in a world where dependence on imported oil carries immense risks.
While more countries are going electric, the United States is losing ground. Battery electric vehicles made up just 6% of US light-duty vehicle sales in the first eight months of 2026, following the rollback of federal EV tax credits in September 2025. Of the 56 countries Ember tracks, 49 now have higher BEV sales shares than the US. Fifteen countries passed the US for the first time this year, including India, Brazil, Italy, Malaysia and New Zealand. That comparison refers to the share of new vehicles sold that are fully electric, not the total number of electric cars sold.
India has been ahead of the US every month since April, and Brazil has also moved ahead as its EV market grows and new manufacturing capacity comes online. Japan, meanwhile, saw its BEV sales double in 2026 after introducing a policy to help buyers with upfront costs. Globally, BEV sales rose 11% year over year in the first eight months of 2026, while plug-in hybrid sales fell 12% and internal combustion engine vehicle sales dropped 6%. BEVs accounted for 18% of new car sales worldwide, up from 16% a year earlier.
Excluding China and the US, Ember estimates that BEV sales jumped 45% across the remaining markets. Oil supply disruptions are helping accelerate EV sales in India, Chile, Australia and New Zealand, Ember says. Policies that make electric cars more affordable are also making a difference. France’s social leasing scheme helped its BEV sales share exceed 30% for the first time, and Germany saw stronger sales after introducing new consumer subsidies at the start of 2026.
Countries are also growing domestic EV manufacturing capacity. Tata and Mahindra accounted for more than 60% of India’s EV sales in the first half of the year. Brazil is expanding as a regional manufacturing hub, and Vietnam’s VinFast is growing its overseas production footprint. These developments suggest the global EV shift is reshaping both energy security and industrial strategy.
Ember’s analysis comes alongside a new EV sales tracker covering 56 countries that account for more than 90% of global electric car sales and more than 80% of all car sales. The tracker estimates how much oil each country’s electric car fleet displaces. As electric car fleets continue to grow, Ember argues, countries that invested early will be better protected against future oil supply shocks. The findings underline that the transition to electric vehicles is no longer only an environmental policy, but also an economic and strategic one.
