Global registrations of electric vehicles decreased by 3% in January compared with the same month a year earlier, falling to almost 1.2 million units, according to data published by Benchmark Mineral Intelligence (BMI). The dataset, which combines battery-electric and plug-in hybrid vehicles and is used as a proxy for sales, points to divergent regional patterns that left overall volumes lower despite pockets of strength.
The downturn was most marked in China and North America. Registrations in China dropped 20% to under 600,000 vehicles, marking the lowest monthly total for nearly two years. North America saw an even sharper contraction, with registrations down 33% to just over 85,000 units. The United States recorded its weakest monthly EV sales since early 2022.
By contrast, Europe expanded in January, with registrations rising 24% to more than 320,000 units. That growth rate, however, was the slowest for Europe since last February. Outside the three major markets, the rest of the world delivered the strongest percentage gain: registrations were up 92% year-on-year to just under 190,000, their highest level on record. BMI attributed the surge beyond the main markets to incentives in Thailand alongside robust increases in South Korea and Brazil.
The report highlights recent policy moves that have pressured EV demand. In China, the introduction of a purchase tax and reductions in EV subsidies contributed to the pullback. In the United States, policy changes have also been a headwind. Additionally, regulators in both the European Union and China have relaxed some rules previously designed to support electrification.
Those policy and market shifts have had financial consequences for automakers. Global carmakers with substantial exposure to the U.S. market have recorded around $55 billion in writedowns over the past year as they scale back electric vehicle plans amid a tougher U.S. market under President Donald Trump, intense pricing competition in China, and a more complex mix of vehicle types in Europe.
"We’ve seen a growing number of exports reported from China for the EV market. 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," said Charles Lester, data manager at BMI.
The industry debate over the pace of electrification is also reflected in consumer choices. Automakers and buyers have increasingly turned to hybrid vehicles as a middle ground between battery-electric models and conventional internal-combustion cars. While hybrids have gained popularity as a compromise, some experts cited in the report argue that the rise of "mild hybrid" models - which continue to rely largely on traditional fuels - offers only limited reductions in CO2 emissions.
The BMI data underscores a shifting and fragmented EV landscape: policy adjustments, subsidy rollbacks, and competitive pricing in major markets are reshaping demand patterns and prompting strategic reassessments by manufacturers. At the same time, stimulus measures and market development in several emerging and regional markets are lifting registrations to record levels outside the core markets.