Key Points:
- Global electric vehicle registrations fell by 3% in January.
- Sales in China dropped 20% due to new purchase taxes.
- North American sales plunged 33% to levels not seen since 2022.
- European markets grew by 24% but showed signs of slowing down.
Global sales of electric vehicles (EVs) hit a speed bump in January. According to new data from consultancy Benchmark Mineral Intelligence, total registrations fell by 3% compared to last year. This decline happened because major governments, specifically in China and the United States, changed the rules on subsidies and taxes.
The numbers in the world’s biggest markets paint a tough picture. In China, sales dropped by 20% to less than 600,000 units. This is the lowest number the country has seen in almost two years. The drop came after the government introduced a new purchase tax and lowered the financial help available for buyers.
The situation in North America is even steeper. Sales there fell by 33%, with just over 85,000 vehicles sold. In the United States specifically, monthly sales hit their lowest point since early 2022. Carmakers are struggling with a tough market under President Donald Trump, facing policy changes that make selling EVs harder. Because of these challenges, major auto companies have lost about $55 billion in value over the past year as they scale back their electric ambitions.
Europe managed to stay positive, but the momentum is fading. Sales grew by 24%, reaching over 320,000 vehicles. However, this was the slowest growth rate the region has recorded since last February.
The bright spots in the industry came from unexpected places. In the “rest of the world” category, sales skyrocketed by 92%. Countries like Thailand, South Korea, and Brazil are seeing a massive boom in electric cars, largely driven by government incentives.
Charles Lester, a data manager at BMI, noted that China is responding to its domestic slowdown by shipping cars elsewhere. He expects Chinese manufacturers to aggressively export EVs to Southeast Asia throughout 2026.
Meanwhile, many drivers are compromising by choosing hybrid cars. These vehicles mix gas engines with batteries and are becoming popular as a bridge technology. While carmakers say this protects jobs, environmental experts warn that some hybrids do little to lower actual emissions.
