Global EV Sales Drop 11% in February; China Retreats While Europe Boosts the Market

Worldwide electric vehicle sales totaled 1.1 million in February 2026, with an annual and sequential drop, while Europe grows supported by subsidies.

Global electric vehicle sales reached 1.1 million in February 2026, an 11% drop compared to January 2026 and the same month in 2025, according to Benchmark Mineral Intelligence (BMI).

In the first two months of the year, the global picture shows a clear regional distribution: China accounted for 1.1 million of the 2.2 million EVs sold globally, meaning half of the total. Europe stood at 0.6 million, Rest of World at 0.37 million, and North America at 0.17 million.

China: Steep Decline Due to Internal Policies

The policy revolution in China was reflected in a 32% drop in February 2026 sales compared to February 2025. BMI points to the reintroduction of a purchase tax for EVs, for the first time since 2014, and adjustments to the vehicle trade-in scheme as key factors in this change.

Europe Maintains Pace, North America Retreats

In Europe, sales grew month-over-month in February 2026, with a 1% increase and an accumulated growth of 21% for the year. Active subsidies in France and Germany contributed 30% and 26% respectively, amplifying the existing regional shock in the market.

According to BMI, Europe continues to be the growth engine, while North America gains less traction and China adjusts to internal policy changes, even as exports advance.

Challenges in North America and Signs in the Battery Sector

BMI also points to falling sales among major manufacturers in the region: Honda, Ford, and Kia recorded accumulated drops of 81%, 70%, and 52% respectively. In December, Ford announced plans to reduce EV capacity after losses approaching US$ 20 billion.

Another highlight in the sector is the retreat of SK On, the battery unit of SK Innovation, which laid off more than a third of its workforce in Georgia. Even with the termination of the BlueOval SK JV—which involved a factory in Tennessee and operations in Kentucky—weak EV demand in the American market was cited as the motivation for the separation.

Declines and Technological Advances on the Radar

Despite the challenging scenario, there is an optimistic tone for the battery supply chain. The solid-state battery sector is receiving positive attention from BMI, with analyst Xin Yen highlighting the integration of solid-state batteries as early as 2027 and the possibility of large-scale production around 2030.

These trends arrive amidst data showing regional dynamics: Europe firmly as the engine, China undergoing regulatory reorganization, and North America struggling to regain momentum amid high policies and costs.

Final Stage: Reader Participation

Which set of public policies do you think will have the greatest impact on maintaining the momentum of EV sales in the coming months? Leave your comment below and share your perspective on what could change this global panorama.