According to a report from Nikkei Asia, the share of gasoline-powered vehicles in global new car sales dropped below 50 percent in the first half of this year (January to June), as the conflict in the Middle East drove up international oil prices.

Sales of gasoline-only vehicles, excluding hybrids and other electrified models, fell 10 percent year-on-year to 20.25 million units.

Their share of global new car sales declined by 3 percentage points to 49 percent.

This proportion has fallen sharply from 73 percent in 2021 in just five years.

It marks the first time since automobiles became widespread in the 1920s that the market share of gasoline vehicles has dropped below 50 percent.

The data comes from Mobility Global, formerly known as S&P Global Mobility, and excludes certain heavy vehicles from its scope.

After the United States and Israel attacked Iran, oil prices surged.

The resulting higher gasoline prices, combined with concerns over fuel supply, significantly dampened global demand for gasoline-powered cars.

Sales in the Chinese market fell 26 percent, while the European market declined 13 percent.

The main beneficiary of shrinking gasoline vehicle demand has been electric vehicles, which offer the advantage of lower operating costs.

Electric vehicle sales rose 12 percent in the first half to 6.87 million units.

They accounted for 17 percent of total new car sales, an increase of several percentage points and surpassing the 16 percent threshold typically seen as the tipping point for mass adoption.

China accounted for half of global electric vehicle sales.

However, after related tax incentives were scaled back starting in January, domestic electric vehicle sales in China fell 3 percent to 3.44 million units.

Electric vehicle sales in North America also dropped 15 percent as the administration of Donald Trump scrapped related incentive policies.

Growth momentum for electric vehicles has shifted to other markets.

Electric vehicle sales in Europe rose 32 percent to 1.81 million units.

Data from the European Automobile Manufacturers' Association shows that in the first half of the year, across 31 major European countries combined, half-year electric vehicle sales exceeded gasoline-powered car sales for the first time in history.

Electric vehicle sales in Southeast Asia surged 81 percent to 350,000 units, while sales in Oceania more than doubled to 110,000 units.

According to International Energy Agency data, Chinese automakers such as Geely and BYD have rapidly expanded their export businesses, with Chinese brands accounting for 60 percent of global electric vehicle and plug-in hybrid vehicle sales.

In markets outside the United States, Europe and China, 55 percent of electric vehicles and plug-in hybrid models sold were imported from China.

Mobility Global predicts that by 2030, electric vehicles will account for more than 30 percent of total vehicle production.

By then, electric vehicles will hold a dominant position, surpassing hybrid models and traditional internal combustion engine vehicles, including diesel cars.

Since July, the global market share of electric vehicles has continued to climb.

Yoshiaki Kawano, associate director at Mobility Global, said: "Around 2024, the pace of electric vehicle adoption slowed due to factors such as subsidy cuts, and sales of hybrid models grew. But higher oil prices have reminded consumers of the lower usage costs of electric vehicles, and now electric vehicle sales are growing again."

Government policies still largely determine the pace of electric vehicle adoption.

Since last autumn, after the United States cut subsidies and relaxed fuel economy regulations, local demand for electric vehicles has fallen sharply.

Automakers such as Honda and General Motors subsequently adjusted their electric vehicle development strategies and recorded large losses.

Even so, Kawano believes: "Among consumers who have already bought electric vehicles, very few switch back to gasoline or hybrid cars. As vehicle prices continue to decline, the market size driven by genuine consumer demand, independent of subsidies, is likely to continue expanding."

For Japanese automakers betting on hybrid models, the proportion of electric vehicles in their own product sales remains relatively limited.

Hybrid models have better fuel economy than ordinary gasoline cars, and even as oil prices rise, hybrid models continue to be popular in the market.

In the first half of this year, global hybrid vehicle sales rose 10 percent to 7.27 million units, accounting for 18 percent of global new car sales.