Global Electric Vehicle Sales Dip in January Amid China, US Policy Shifts
Global electric vehicle registrations decreased 3% in January, according to data from consultancy Benchmark Mineral Intelligence. This decline was attributed to a new purchase tax and reduced electric vehicle subsidies in China, alongside policy adjustments in the United States.
Global carmakers with significant exposure to the United States market have recorded approximately USD 55 billion in writedowns over the past year. This adjustment reflects a challenging United States market under President Donald Trump, price competition in China, and a more complex range of vehicle types in Europe.
The European Union, along with China, which is the world’s largest electric vehicle market, also loosened regulations previously designed to support electrification.
Global electric vehicle registrations, serving as a proxy for sales, fell 3% year-on-year to nearly 1.2 million units in January. This figure includes both battery-electric and plug-in hybrid vehicles.
Registrations in China dropped 20% to less than 600,000 units, marking the lowest level in almost two years. North America saw a 33% decline, with just over 85,000 electric vehicles sold.
The United States recorded its fewest electric vehicle sales since early 2022 during the month. In contrast, European sales increased 24% to over 320,000 registrations, representing the slowest growth rate since last February.
Sales in other parts of the world rose 92% to just under 190,000 units, reaching their highest recorded level. This growth was supported by incentives in Thailand and robust expansion in South Korea and Brazil.
Charles Lester, data manager for Benchmark Mineral Intelligence, noted a rising number of electric vehicle exports reported from China. Lester anticipates this trend will persist, leading to a strong year for electric vehicle exports over 2026.
He indicated these exports would target various regions, including Southeast Asia, where significant growth has been observed in recent months.
Supporters of electrification stress the necessity to reduce planet-warming carbon dioxide emissions. However, carmakers contend that a rapid shift poses risks to employment and profitability.
Consequently, hybrid cars, viewed as a middle ground between battery-electric and combustion engine vehicles, have gained popularity among consumers. Some experts, however, suggest that mild hybrid cars, which predominantly use traditional fuels, only minimally contribute to emission reduction.
Global electric vehicle registrations decreased 3% in January.
The decline was linked to new taxes and reduced subsidies in China, and policy changes in the United States.
Carmakers recorded USD 55 billion in writedowns due to market challenges.
Source: REUTERS
