Global electric vehicle sales declined at the start of 2026, as weaker demand in China and the United States offset growth in Europe and emerging markets, new industry data shows.
Global EV registrations dropped 3% year-on-year in January to nearly 1.2 million units, according to Benchmark Mineral Intelligence. The decline follows policy changes, including reduced subsidies and a new purchase tax in China, as well as shifting regulations and weaker demand in the U.S, News.Az reports, citing Reuters.
China, the world’s largest EV market, saw the sharpest drop, with registrations falling 20% to below 600,000 vehicles, the lowest level in almost two years. In North America, sales plunged 33% to just over 85,000 units, marking the weakest monthly performance since early 2022.
In contrast, Europe recorded growth of 24%, reaching more than 320,000 registrations, although this marked the slowest growth pace in nearly a year. EV demand surged in other global markets, rising 92% to nearly 190,000 units, supported by incentives in Thailand and strong expansion in South Korea and Brazil.
The slowdown comes as global automakers reassess EV strategies. Companies heavily exposed to the U.S. market have recorded around $55 billion in writedowns over the past year amid slower adoption, price competition in China and shifting demand patterns in Europe.
Industry analysts say Chinese manufacturers are likely to increase exports in 2026, targeting fast-growing regions such as Southeast Asia. At the same time, hybrid vehicles are gaining popularity as consumers seek a middle ground between fully electric cars and traditional combustion engines.
While governments continue to push electrification to cut carbon emissions, automakers warn that rapid transitions could pressure profits and threaten jobs, reinforcing a more gradual shift toward electric mobility.
