Global EV Registrations Post Second Consecutive Monthly Decline in February

Reuters reported that global electric vehicle registrations fell 11% year-on-year in February, marking the second consecutive monthly decline and bringing total worldwide sales to just over one million units. The figures, drawn from data published by consultancy Benchmark Mineral Intelligence (BMI), represent the weakest monthly performance since February 2024. For the first two months of 2026 combined, global EV sales reached 2.2 million units, down 8% compared to the same period last year.

China's EV market fell 32% year-on-year in February, as the country's new EV purchase tax — introduced for the first time since 2014 — and a less generous trade-in subsidy scheme continued to weigh on consumer demand. The drop, Reuters noted, was the steepest recorded since the early months of the COVID-19 pandemic.

Total registrations came in at fewer than 500,000 vehicles for the month. BMI data manager Charles Lester attributed the trend to heightened price sensitivity among buyers, following years of government-backed incentives that had previously shielded consumers from the full cost of switching to electric. Analysts have described the decline as a deliberate policy correction rather than a structural reversal — Beijing's move to phase out subsidies is widely seen as an effort to transition the sector toward market-driven competition after a prolonged period of state support.

North America fared no better, with registrations falling 35% to under 90,000 units — a fifth straight monthly drop. The sustained decline follows the expiry of federal EV tax credits in the United States last September and the Trump administration's subsequent push to roll back CO₂ emission standards.

These shifts have materially affected automaker strategy: companies with heavy U.S. exposure have collectively absorbed more than $70 billion in asset writedowns. Ford, General Motors, and Stellantis are among those that have revised their North American EV targets. Canada's EV market is also down 23% year to date, though the country is attempting to stabilise demand through a new arrangement with China that allows Chinese-made EVs to enter at a reduced tariff rate of 6.1%, with the first import permit window opening on March 1.

Europe stood apart from the global trend. EV sales in Germany are up 26% so far this year, following the introduction of a new subsidy programme, while France's market is up 30%, supported by its existing incentive scheme. Italy recorded a particularly notable jump, with February marking the country's strongest month ever for EV sales — up 98% year to date — following the October 2025 launch of a national subsidy programme funded through the EU's Recovery and Resilience Facility, which offers households up to €11,000 in incentives. Overall, European EV registrations rose 21% in February, even as the continent's emissions targets were modestly softened last year.

Beyond the three major blocs, the picture was one of growth. Registrations in the rest of the world rose 78% year-on-year to over 180,000 vehicles. South Korea was a standout performer, with EV sales more than tripling month-on-month to over 37,200 vehicles — the first time the country's monthly total has exceeded 30,000 units — following the launch of a new national subsidy programme focused on smaller, more affordable models. Chinese automakers have been a significant driver of expansion across this grouping, accelerating exports to Southeast Asia, Australia, and Europe as they seek to offset intensifying domestic competition.

The February data reinforces a pattern that has become increasingly visible since the start of 2026: the trajectory of EV adoption is closely tied to the presence or absence of government support, and divergence between regions is widening. Markets that have maintained or introduced incentive frameworks are growing; those that have withdrawn them are contracting. The uneven global picture underscores how deeply intertwined EV adoption is with government policy — and how quickly momentum can reverse when those incentives disappear.