EVs are giving oil-importing countries some breathing room during the Hormuz energy crisis. Between March and August, their EV fleets displaced an estimated $20 billion worth of crude oil, according to new analysis from energy think tank Ember.
And while more countries are going electric, the US is losing ground. Fifteen countries, including India and Brazil, have overtaken it this year in the share of new vehicles sold that are fully electric.
$20 billion worth of oil avoided
Ember estimates that electric cars in oil-importing countries displaced 200 million barrels of crude oil between March and August.
That’s oil those countries didn’t need to fuel their cars while supplies were disrupted. The $20 billion figure is Ember’s estimate of the value of that displaced oil.
China accounted for most of that, avoiding an estimated $14 billion worth of crude oil consumption. EU countries saved another $3.1 billion, with Germany and France accounting for the largest shares.
“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.
“Every electric car on the road reduces exposure to volatile oil markets, and as fleets grow, so does the protection against future supply shocks. 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.”
The analysis comes alongside Ember’s new EV sales tracker. It covers 56 countries that account for more than 90% of global electric car sales and more than 80% of all car sales, and estimates how much oil each country’s electric car fleet displaces.
India and Brazil pass the US
Battery electric vehicles (BEVs) made up just 6% of US light-duty vehicle sales in the first eight months of 2026, following the rollback of the federal EV tax credits in September 2025.
Of the 56 countries Ember tracks, 49 now have higher BEV sales shares than the US. Fifteen passed it for the first time this year, including India, Brazil, Italy, Malaysia, and New Zealand.
India has been ahead of the US every month since April. Brazil has also moved ahead as its EV market grows and new manufacturing capacity comes online.
To be clear, that’s the share of new vehicles sold that are fully electric. It doesn’t mean those countries are selling more electric cars overall than the US.
Japan, meanwhile, saw its BEV sales double in 2026 after introducing a policy to help buyers with upfront costs, according to Ember.
Electric car sales keep climbing
Globally, BEV sales rose 11% year over year in the first eight months of 2026. Plug-in hybrid (PHEV) sales fell 12%, and internal combustion engine (ICE) vehicle sales dropped 6%.
BEVs accounted for 18% of new car sales worldwide, up from 16% a year earlier.
But the global average only tells part of the story. Exclude China and the US, and Ember estimates that BEV sales jumped 45% across the remaining markets.
Ember says oil supply disruptions are helping accelerate EV sales in India, Chile, Australia, and New Zealand. 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. Germany saw stronger sales after introducing new consumer subsidies at the start of 2026.
Countries are also growing their 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.
Read more: EV sales are booming in Europe – and plunging in North America
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