Electric car sales are falling – by 30% in the US

Electric vehicle sales in 2026 will grow at their slowest pace since the 2020 pandemic, which severely shocked the global economy, according to the Financial Times, citing research from Benchmark Mineral Intelligence.

The global transition away from internal combustion engines is facing new challenges. Analysts are recording slowing demand in China, weak growth in Europe, and a shrinking US market. Electric vehicle sales are forecast to grow by only 13% in 2026, reaching approximately 24 million units, compared to a growth rate of approximately 22% a year earlier.

Several factors have influenced the industry’s development. These include the Trump administration’s repeal of tax incentives for electric vehicles in the US, the EU’s easing of its ban on gasoline-powered cars from 2035, and the gradual cooling of the Chinese market. After several years of rapid growth, largely driven by China and fueling expectations of a rapid decline in gasoline-powered vehicles, the global market is shifting to a more moderate pace.

Decline in Global Electric Car Sales

In the US, experts estimate that electric vehicle sales could decline by 29% in 2026, to 1.1 million vehicles, after a record 1.5 million in 2025. In Europe, growth is forecast to be approximately 14%, to 4.9 million vehicles. In China, which remains the largest market, sales of approximately 15.5 million electric vehicles and plug-in hybrids are expected, which is still below the growth rates of previous years.

Chinese manufacturers, particularly BYD, actively stimulated demand last year with more affordable models, gradually displacing their European and American competitors. In 2025, BYD surpassed Tesla to become the world’s largest electric vehicle manufacturer.

Plug-in hybrids are gaining popularity

At the same time, hybrids and plug-in hybrids are gaining popularity in many markets. One of the reasons cited is the underdeveloped charging infrastructure for fully electric vehicles. As Ford CEO Jim Farley noted, partial electrification is now just as attractive as full electrification. Last month, Ford wrote down $19.5 billion after abandoning several electric vehicle models, including the F-150 Lightning, deciding to focus on more profitable hybrids and internal combustion engines.

Analysts expect the Chinese market to continue growing, albeit significantly slower than previously. UBS, in particular, forecasts an 8% increase in sales in China in 2026. Automakers emphasize that, as the industry transforms, the flexibility of model lines and the ability to quickly adapt to changing demand are key factors.