China's purchase tax introduction and reduced US subsidies contribute to worldwide electric vehicle registration decline.
13 Feb 2026 | 1 Views | By Shristi Ohri
Global electric vehicle registrations declined 3% year-on-year in January, reaching approximately 1.2 million units, as policy changes in China and the United States dampened demand, according to data released Friday by consultancy Benchmark Mineral Intelligence (BMI) and reported by Reuters.
The decline marks a significant shift in the EV ...
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Global electric vehicle registrations declined 3% year-on-year in January, reaching approximately 1.2 million units, as policy changes in China and the United States dampened demand, according to data released Friday by consultancy Benchmark Mineral Intelligence (BMI) and reported by Reuters.
The decline marks a significant shift in the EV market's growth trajectory, with China—the world's largest EV market—experiencing a 20% drop to fewer than 600,000 registrations, its lowest level in nearly two years. The downturn followed the introduction of a purchase tax and reduced EV subsidies in the country.
North American registrations fell 33% to just over 85,000 vehicles, with the United States recording its lowest monthly EV sales since early 2022. The slump comes amid policy changes under President Donald Trump's administration.
Europe provided a bright spot with 24% growth to over 320,000 registrations, though this represented the slowest growth rate since February of the previous year. The rest of the world saw 92% growth to nearly 190,000 registrations—a record high—driven by incentives in Thailand and strong performance in South Korea and Brazil.
The data, which encompasses both battery-electric and plug-in hybrid vehicles, reflects broader challenges facing the global automotive industry. According to Reuters, carmakers with significant U.S. market exposure have recorded approximately $55 billion in writedowns over the past year as they scaled back EV ambitions amid difficult market conditions.
Charles Lester, BMI data manager, told Reuters that Chinese manufacturers are increasingly focusing on exports. "We've seen a growing number of exports reported from China for the EV market," Lester said. "We're expecting that to continue, trying to have a strong year of EV exports over 2026, targeting many different regions, including the likes of Southeast Asia, which is where we've seen a lot of growth over the past few months."
The slowdown occurs as both the European Union and China have relaxed regulations previously designed to support electrification. Meanwhile, hybrid vehicles—viewed as a compromise between traditional combustion engines and battery-electric powertrains—have gained popularity among consumers, though some experts question their environmental impact, particularly "mild hybrid" vehicles that predominantly use conventional fuels.