EV Sales Growth at Slowest Rate Since February 2024 as Policy Shifts Reshape Global Market

Global electric vehicle (EV) registrations expanded by 20 per cent over the past year but are likely to lose momentum in 2026, data revealed on Wednesday, amid a deceleration in China and a softening of electrification objectives globally that resulted in December recording the smallest sales increase since February 2024. Monthly registrations of EVs, including battery electric and plug-in hybrids, declined further in the US following the end in October of an EV tax credit scheme, according to consultancy Benchmark Mineral Intelligence (BMI), news agency Reuters reported.

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Policy Change Reshapes Market Landscape

Big policy transformations, including US President Donald Trump's reversal on electrification and a relaxation of emission standards in the European Union (EU), disrupted the global EV market in 2025 into a "virtually unrecognisable landscape", according to BMI data manager Charles Lester.

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Intensifying competition in Europe and weakening demand in China are likely to amplify the discussion between electrification advocates who stress the necessity to reduce planet-warming CO2 emissions, and vehicle manufacturers who contend a rapid transition jeopardises employment and profitability.

December Figures Show Marked Regional Variations

Global EV registrations, a measure for sales, increased by 6 per cent to almost 2.1 million units in December, achieving 20.7 million vehicles in 2025, the data further added.

China Records Lowest Growth Since Early 2024

Registrations advanced by 2 per cent in China to more than 1.3 million, the lowest year-on-year expansion since February 2024, contributing to a 17 per cent increase to 12.9 million units in 2025. The nation manufactured 71 per cent of EVs sold worldwide.

US Market Contracts After Tax Credit Expiry

The US registrations declined by 39 per cent to just over 100,000 cars sold, following similar reductions in October and November at the conclusion of US tax credits. They were down 4 per cent for the entire 2025.

European Market Shows Robust Growth

Europe registered growth of 34 per cent in December to over 450,000 registrations and by 33 per cent across the year, whilst in the remainder of the world sales increased by 41 per cent to over 160,000 units in December, and by 48 per cent in 2025.

2026 Outlook

BMI projects 23.9 million EVs will be sold globally this year, which is a 15.7 per cent increase, with growth sharply accelerating in China to 21 per cent and moderating in Europe and the rest of the world to 15 per cent and 26 per cent, respectively.

The consultancy firm forecasts a more pronounced decrease of 23 per cent in the US due to a 29 per cent slump.