Global EV Market Slows as China and U.S. Demand Weakens

The global electric vehicle (EV) market recorded a decline in January, with total registrations falling 3% year-on-year to about 1.2 million units. The figures, released by consultancy Benchmark Mineral Intelligence and reported by Reuters, point to policy changes and weakening demand as the primary drivers behind the slowdown.

In China the world’s largest EV market registrations dropped 20% to below 600,000 units, marking the lowest level in nearly two years. The decline followed the introduction of a purchase tax and reductions in government subsidies, which directly impacted consumer demand.

North America also saw a significant downturn, with registrations falling 33% to just over 85,000 vehicles. In the United States, EV sales reached their lowest monthly level since early 2022. The slowdown comes amid policy changes during the administration of Donald Trump.

In contrast, the European Union recorded 24% growth, with registrations exceeding 320,000 units, although the pace of expansion was slower compared with the previous year. Emerging markets in Asia and other regions also posted record growth, supported by government incentives and rising consumer adoption.

Industry experts say the global automotive sector is now adjusting its strategy, with Chinese manufacturers increasingly focusing on exports. Meanwhile, hybrid vehicles are gaining popularity among consumers as a practical alternative between conventional fuel-powered cars and fully electric models.