Global electric vehicle (EV) registrations declined by 3% in January as new taxes, reduced subsidies in China, and policy changes in the United States affected sales, according to data released on Friday by consultancy Benchmark Mineral Intelligence (BMI), The Economic Times reported.
Carmakers with significant exposure to the U.S. market have recorded about $55 billion in writedowns over the past year as they scale back EV plans. The industry is facing a challenging U.S. market under President Donald Trump, intense price competition in China, and a more complex range of vehicle options in Europe.
Regulations designed to encourage the shift to electric vehicles were also eased in both the European Union and China, the world’s largest EV market.
Global EV registrations, which are considered an indicator of sales and include battery-electric and plug-in hybrid cars, fell year-on-year to nearly 1.2 million units in January.
China saw registrations drop by 20% to fewer than 600,000 vehicles, marking the lowest level in almost two years. North America recorded a sharper decline of 33%, with just over 85,000 vehicles sold. The United States posted its lowest monthly EV sales since early 2022.
In contrast, Europe reported a 24% increase in registrations to more than 320,000 vehicles, although this was the slowest growth rate since last February.
Registrations in the rest of the world surged by 92% to just under 190,000 units, the highest level on record. The growth was supported by incentives in Thailand and strong demand in South Korea and Brazil.
BMI data manager Charles Lester said exports from China are increasing and are expected to remain strong through 2026, targeting several regions, including Southeast Asia, where demand has grown in recent months.
Supporters of vehicle electrification stress the importance of reducing carbon dioxide emissions, but carmakers warn that a rapid shift could threaten jobs and profitability.
As a result, hybrid vehicles are gaining popularity as a middle ground between fully electric and traditional combustion engine cars. However, some experts argue that “mild hybrid” models, which largely rely on conventional fuels, offer only limited reductions in emissions.
