Quick Highlights:
- Global EV registrations declined 3% year-on-year to 1.2 million units in January 2026.
- China’s EV market dropped 20%, while North America fell 33%, marking the US’s weakest performance since early 2022.
- Europe grew 24%, and the rest of the world surged 92% to a record high.
- India’s electric passenger vehicle sales jumped 51% year-on-year to 18,042 units.
Global EV Sales Slip 3% in January 2026 as US Falls Behind
The global electric vehicle (EV) market began 2026 on an unexpected weak note, with registrations declining 3% year-on-year to around 1.2 million units in January, according to data from Benchmark Mineral Intelligence, as reported by Reuters.
In my view, this slowdown is more than just a monthly fluctuation — it signals a transitional phase for the EV industry, where policy recalibrations and shifting consumer preferences are reshaping momentum across major markets.
China Sees Sharp 20% Drop
China, the world’s largest EV market, experienced a 20% decline, with registrations falling below 600,000 units, marking its lowest level in nearly two years.
The downturn followed the introduction of a purchase tax and reductions in EV subsidies. For years, China’s generous policy support powered explosive EV growth. With that support tapering, demand appears to be adjusting to more market-driven conditions.
However, Chinese manufacturers are not retreating. Instead, they are ramping up exports. According to BMI data manager Charles Lester, exports are expected to strengthen through 2026, particularly targeting Southeast Asia and other high-growth regions.
North America Records Steep 33% Fall
North America saw a dramatic 33% decline to just over 85,000 registrations, with the United States recording its lowest monthly EV sales since early 2022.
The slump comes amid policy shifts under President Donald Trump, which have created uncertainty in EV incentives and regulatory direction. Automakers with heavy exposure to the US market have reportedly taken nearly $55 billion in writedowns over the past year as they scaled back ambitious EV targets.
Personally, I see this as a reality check for automakers that aggressively expanded EV capacity without stable long-term policy backing.
Europe Posts Moderate Growth
Europe provided some relief to the global numbers, with registrations rising 24% year-on-year to over 320,000 units.
While still positive, this marked the slowest growth rate since February of last year. Interestingly, both the European Union and China have relaxed certain regulations that were previously designed to accelerate electrification, suggesting a broader shift toward a more balanced mobility strategy.
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Emerging Markets Hit Record High
The rest of the world recorded an impressive 92% surge to nearly 190,000 registrations, a record high.
Growth was largely driven by incentives in Thailand and strong performance in South Korea and Brazil. These markets are increasingly becoming key battlegrounds for global EV manufacturers seeking fresh demand pools.
India’s EV Momentum Continues
Amid global volatility, India stood out with robust growth.
In January 2026, India’s electric passenger vehicle segment recorded 18,042 units in sales, marking a 51% year-on-year increase from 11,909 units in January 2025.
While India remains far behind China, Europe, and the US in total volumes and innovation capacity, I believe the momentum shift is meaningful. Younger car buyers appear far more open to electric mobility, and that mindset change could prove decisive over the next decade.
Check out who the top players were!
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Hybrid Vehicles Gain Ground
As EV growth slows in certain regions, hybrid vehicles — especially plug-in hybrids — are gaining traction. Many consumers view them as a practical middle ground between traditional combustion engines and full battery-electric vehicles.
However, some experts continue to question the environmental benefits of “mild hybrids,” which rely heavily on conventional fuels.
Industry at a Crossroads
January’s numbers highlight a pivotal moment for the EV industry. The era of subsidy-driven hypergrowth appears to be transitioning into one defined by policy recalibration, export strategies, and consumer pragmatism.
While short-term sales dips may raise concerns, I see this phase as a necessary correction that could ultimately lead to a more sustainable and competitive global EV ecosystem.
Frequently Asked Questions — FAQs
Q. Why did global EV sales decline in January 2026?
- Global EV registrations fell 3% year-on-year due to policy changes in China and the United States, including reduced subsidies and regulatory uncertainty.
Q. Which country saw the biggest EV sales drop?
- North America recorded the steepest decline at 33%, with the United States experiencing its lowest monthly EV sales since early 2022.
Q. How did China perform in January 2026?
- China’s EV registrations dropped 20%, falling below 600,000 units following new purchase taxes and reduced incentives.
Q. Which regions showed strong EV growth?
- Europe grew 24%, while the rest of the world surged 92%, reaching a record high driven by markets like Thailand, South Korea, and Brazil.
Q. How is India performing in the EV market?
- India’s electric passenger vehicle sales rose 51% year-on-year, reaching 18,042 units in January 2026, indicating growing consumer acceptance of electric mobility.
Q. Are hybrid vehicles replacing EVs?
- Hybrids are gaining popularity as a transitional option, but they are not replacing EVs entirely. Instead, they offer consumers flexibility amid infrastructure and policy uncertainties.
