Global electric vehicle sales dropped in January 2026, with a 3% decrease year-over-year and a 44% drop from December 2025. China and North America experienced significant declines due to policy changes and reduced incentives.

China, the world’s largest EV market, saw a 20% year-over-year and 55% monthly sales decrease. Policy changes include a 5% purchase tax on EVs and a less generous trade-in scheme, leading to a more market-driven environment for the EV sector in 2026.

Europe, on the other hand, showed resilience with over 320,000 EVs sold in January, marking a 24% increase year-over-year. The region continues to push for higher sales to meet EU emissions targets, with subsidies reintroduced in key markets like the UK, Germany, and France.

Outside major regions, EV sales nearly doubled, with South Korea, Brazil, and Thailand leading the growth. The expiration of federal EV tax credits in the U.S. also contributed to declining sales, with automakers adjusting strategies to navigate the changing market landscape.

Read more at Yahoo Finance: China Sales Slide 20%, US Sees Worst Month Since 2022