Gas Cars Lose Half the World for the First Time Since 1920

For nearly a century, the internal combustion engine was the only serious option for most of the world. That era has officially ended. According to data from Mobility Global, pure gas vehicles now account for just 49% of global new car sales. This is the first time since the 1920s that combustion engines have fallen below the 50% threshold. The shift is not a gradual fade but a sharp break in the market structure.

The decline is stark when viewed against recent history. In 2021, gas only models held a 73% share of the global market. Now that number has collapsed by more than 20 percentage points in just five years. The primary drivers are clear. Rising fuel prices and high maintenance costs are pushing buyers toward electric and hybrid alternatives. The technology went mainstream in the 1920s, but its dominance is now being eroded by a new generation of efficient, lower cost electrified vehicles.

The European Breakthrough

Europe is leading this transition with specific national milestones that signal a broader structural change. In Spain, the Tesla Model 3 became the first electric vehicle to finish a full month as the best selling passenger car in the country. ANFAC data shows 2,528 Model 3 registrations in September, a 27.9% increase from the same period last year. This performance comfortably beat the Seat Ibiza and Dacia Sandero, which previously dominated the local market.

The momentum is not isolated to one country. In France, the Model Y recorded 8,183 registrations, edging out the Peugeot 208 and Renault Clio. Private buyers were particularly enthusiastic, with Model Y sales among individuals jumping 84.7% year over year. The pattern repeats across Scandinavia and the Benelux. In Norway, the Model Y captured 25.7% of the entire new car market. In Sweden, it finished first with 2,330 units, far ahead of the Volvo XC60. These are not niche results. They are mainstream market leadership.

Price Cuts and Strategic Moves

Manufacturers are responding with aggressive pricing strategies to secure their share of this shifting market. Tesla recently slashed the price of selected Model 3 and Model Y vehicles in Australia by up to $3,750. These discounts apply to existing stock built before the latest model year upgrades. The move aims to clear inventory while newer, improved models arrive later this month.

Cupra has taken a different approach by restructuring its lineup. The brand introduced a new entry level Tavascan trim called Origin. Priced at £39,995, it pairs with a new 58kWh battery option and a 190PS motor. This addition sits below the existing V1 and V2 trims and follows recent price reductions across the range. By lowering the entry barrier and adding features like vehicle to load functionality, Cupra is making its electric SUV more accessible to a wider audience.

Performance and Software Gains

Beyond price and sales volume, manufacturers are also squeezing more performance from existing hardware. In the Philippines, the Tesla Model Y L now accelerates from 0 to 100kph in 4.5 seconds. The six seater previously required five seconds for the same sprint. Tesla achieved this half second improvement without changing the basic powertrain. The dual motor setup and 88.2kWh battery remain the same, suggesting a new software calibration is responsible for the extra punch.

Similar tuning strategies are evident in other markets. In New Zealand, EV registrations surged to 2,593 in September, up from 608 in the same month last year. The overall market is booming, with new vehicle registrations up 22% year over year. This growth is fueled by strong demand for refreshed models and the arrival of competitively priced Chinese EVs. BYD, for instance, achieved over 1,000 registrations in a single month for the first time. This milestone highlights how new players are disrupting established hierarchies.

The New Normal

The data points to a permanent shift in consumer behavior. In New Zealand, battery electric and plug in hybrid vehicles now represent 28.7% of passenger vehicle registrations. This is a massive jump from 9.6% in September 2025. The loss of previous government incentives in some regions did not stop the momentum. Instead, the market adjusted to higher fuel costs and the tangible benefits of electric ownership.

The future of the automotive industry is no longer a debate about whether electric vehicles will grow. It is a competition over who can deliver the best value, performance, and features in this new landscape. From the streets of Madrid to the highways of New Zealand, the electric car is no longer a luxury or a niche. It is the default choice for a growing majority of buyers. The 50% mark has fallen, and the ground is shifting beneath the feet of every manufacturer still relying on the old guard.