The soaring price of petrol is sending more Australian drivers to electric cars and the trend could change the worldwide automotive market.

Global oil shortages are driving more motorists to buy electric vehicles, with predictions they could account for almost one in three cars sold worldwide within a year.

Australian drivers could be among those behind the trend after a report found local motorists would save an additional $688 with an EV due to record petrol price increases.

The International Energy Agency released the findings on Thursday in its annual report on the sector, which also found electric vehicles were on track to represent half of all vehicles sold in 2035.

The forecast comes after Australians bought a record number of electric and hybrid vehicles in March and April following fuel shortages caused by conflict in the Middle East.

The agency’s Global EV Outlook 2026 report, which combines sales data with analysis, found electric cars sales exceeded 20 million in 2025, representing a rise of 20 per cent.

Europe recorded the strongest EV growth with sales up by 30 per cent, while Southeast Asian countries such as Vietnam, Indonesia and Thailand more than doubled the number of electric car sales.

Their popularity remained steady in the US and slowed slightly in China, where they made up more than half of all vehicle sales, but International Energy Agency executive director Fatih Birol said the year represented a turning point.

“Electric car sales set new records in close to 100 countries last year,” he said.

“The growing popularity of EVs has marked a major shift for car makers and the energy system as a whole, and it is providing some relief now amid the largest oil supply shock in history.”

Global fuel shortages were expected to draw consumer attention to the lower running costs of electric vehicles, the report said, and would help them reach 23 million sales in 2026, representing 28 per cent of all car sales.

Australian motorists were hit particularly hard by rising fuel prices – up by 34 per cent in April compared with 2025 – which meant they could save an additional $US490 a year ($688) by swapping a petrol car for a battery-powered model.

The figures showed low-emission cars were becoming an even better investment, Electric Vehicle Council policy head Aman Gaur said.

“People around the world are making the sensible decision to step into EVs, which are cheaper to run and aren’t dependent on expensive, foreign fuels,” he said.

But growth in electric cars could be affected by further fuel excise cuts, the report noted, and also by rising electricity prices.

Australians bought more than 15,400 electric cars in April, according to figures from the Federal Chamber of Automotive Industries and Electric Vehicle Council, representing 16.4 per cent of all new car sales.

Source: AAP

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We were impressed as soon as we drove the 718 Boxster, and then Porsche introduced a six-cylinder version that was even better. Now the Boxster Mk4 has been axed, but its desirability isn’t diminished, so here’s what you need to know to buy your perfect example.

History

The fourth-generation Boxster was launched in January 2016, two decades after the original model was unveiled. The 296bhp Boxster had a turbocharged 2.0-litre four-cylinder engine, while the 345bhp Boxster S version came with a turbocharged 2.5-litre engine.

Launched in October 2017, the Boxster GTS had a 360bhp 2.5-litre engine, while the 296bhp Boxster T that arrived in December 2018 was a driver-focused entry-level variant that was lighter than standard, sat 20mm lower and was fitted with adaptive dampers.

The Boxster Spyder that was introduced in September 2019 packed a 414bhp 4.0-litre naturally aspirated six-cylinder engine; this same powerplant was fitted to the Boxster GTS 4.0 that was launched in January 2020, in 388bhp form. The Boxster 25 Years that arrived in January 2021 marked a quarter of a century of production and was based on the GTS 4.0; it was limited to 1,250 units worldwide.

On the road

There are many reasons why you want a Boxster, but this is the key one. Any correctly maintained and properly set up Boxster is fabulous to drive, from the weighting and feedback of the controls to the scintillating performance. Ride comfort is amazing considering how sharp the handling is, too.

The six-cylinder engines are smooth and sound superb, while the four-cylinder units are torquey, frugal and lighter. So both engines have their pros and cons and it’s the same for the transmissions; both manuals and autos are ultra-slick, and chosen purely based on personal preference.

Which one should I buy?

Even the slowest Boxster, the 2.0-litre edition, can crack 170mph and do 0-62mph in 5.1 seconds, while the Spyder can do 187mph and 0-62mph in 4.4 seconds. The six-cylinder versions are glorious, but the 2.5-litre S model has the perfect balance of poke and poise, even if it doesn’t sound as lovely as a  4.0-litre edition (for which you’ll pay a very hefty premium).

CUPRA and sibling-brand SEAT have reported record sales and revenue but almost no profit in 2025 as tariffs, competitive pressure and substantial capital expenditure associated with converting key plants to build low-cost electric vehicles (EVs) wiped out earnings at the Volkswagen Group (VAG) subsidiary.

 

Operating profit at Cupra plunged to 1 million euros in 2025 ($A1.63 million), down from 633 million euros in 2024 ($A1.03 billion) despite posting record sales of 657,400 vehicles and record turnover of 15.3 billion euros ($A24.9 billion).

 

Executives told media including GoAuto that the decline reflected a deliberate investment phase as the business prepares to launch affordable BEVs while reshaping its production network.

 

“Let’s be clear: our results are not where we want them to be,” Cupra chief executive officer Markus Haupt said.

 

“They are also not unexpected. They reflect exactly the phase that we are in—an investment phase.”

 

Chief financial officer Patrik Mayer said profitability was squeezed by several factors, including a 20 per cent tariff levied by the European Union on the China-built Tavascan BEV, high production costs, and aggressive competition from Chinese carmakers.

 

Investment weighed heavily on the balance sheet as the company poured 1.3 billion euros ($A2.1 billion) into capital expenditure and R&D while transforming its Martorell and Pamplona factories for BEV production—as well as production of batteries at the former location.

 

As a result, net cash flow fell to –431 million euros (–$A701 million), highlighting the financial strain of electrification before new models hit the market.

 

However, Cupra says several factors should improve its financial performance this year.

 

A boost has already been secured in the removal of countervailing tariffs on the Tavascan, after VAG reached an undertaking agreement with EU regulators.

 

“The relief on the Tavascan is a big step forward,” said Mr Mayer.

 

Cupra’s big bet is the Raval, an affordable BEV hatchback set to launch in Europe this year. An Australian release is on the cards for 2027 or 2028.

 

Priced from 26,000 euros ($A42,000), the Raval will debut the new MEB21 platform, which underpins a family of small BEVs being built by SEAT/Cupra on behalf of multiple VAG brands.

 

Haupt described the Raval as “the backbone of our EV strategy”, saying the hatch is designed to democratise electric mobility while improving BEV margins by lowering costs.

 

Finance vice-president Mayer added that profitability for Cupra BEVs should improve as the new platform scales.

 

“Our margin on BEVs will look completely different with the Raval, and any other car that might come on this platform, than what we currently have in our portfolio,” he said.

 

VAG has now confirmed that SEAT/Cupra will take on long-term responsibility for upgrading MEB21 in future.

 

Despite its push into lower-cost BEVs, Cupra has confirmed it will maintain petrol and plug-in hybrid models alongside BEVs during the industry’s transition period.

 

“For us, it is super important to stay flexible during the next years, because the speed of acceptance of EVs, and the speed of infrastructure for charging, is different between countries.

 

“We are betting still on combustion for some countries…and we have plug-in hybrids as a very good transition technology.”

 

That strategy is relevant for Australia, where PHEVs help carmakers meet New Vehicle Efficiency Standard (NVES) limits while offering customers long driving range and the practicality of filling up at the bowser.

 

Cupra executives confirmed the brand is also examining additional hybrid technologies, including a range-extender electric vehicle (REEV) powertrain previewed by the Tindaya concept.

 

“Range extenders are being discussed,” said Mr Haupt.

 

“We need to take a very detailed look at the trend, and we need to make these decisions on a group level to ensure we have the right powertrains for the future.”

 

At the same time, Cupra is planning to continue its expansion into new markets—but the crown jewel of this strategy remains on hold.

 

In 2024, Cupra announced ambitions to launch in the United States by 2030, with a range of electric and hybrid vehicles, but the US plan was put on hold last year.

 

Executives say the project remains frozen due to geopolitical uncertainties. The US market has seen major shifts in EV purchase incentives and local vehicle production policies in recent years.

 

“We took a very bold decision to freeze the plans to enter the US,” Mr Haupt told GoAuto.

 

“We were convinced it was not the right time to take a decision that requires a big investment in that changing environment.”

 

For now, Cupra says its focus remains on stabilising profitability while retaining combustion and hybrid models for some markets and expending its electrified portfolio for others.

 

A target of six per cent return on sales has been set for 2030, with executives confident of gradually moving towards that margin goal over the next four years.