China's January EV Sales Fall 20% as US Experiences Worst Month Since 2022

January Global EV sales experience steep declines in both Chinese and US markets.

Wayne Gerdes – CleanMPG – Feb. 12, 2026

BYD Han L EV

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Global EV sales in January 2026 reached 1.2 million units, marking a 3% decrease year-over-year and a 44% drop from December 2025. North America EV sales by themselves experienced a 33% year-over-year hit.

China's decline was foreshadowed as a 5% purchase tax credit on EVs was abandoned similar to how the US' $7,500 Fed Tax Credit was pulled.

These factors contributed to a smaller market-driven environment for China, the worlds largest EV global sales sector, in 2026.

This follows a challenging year for Tesla in China and the US, where the company faced its first annual year over year sales decline in 2025.

Europe and Parts of Asia Buck the Trend

Europeans purchased more than 320,000 EVs in January, a 24% increase year-over-year. The region continues to push for higher sales to meet EU emissions targets, with purchase subsidies reintroduced in the UK, Germany, and France. Europe, EV market share on the continent surpassed gasoline powered vehicles in 2025.

EV sales nearly doubled in South Korea, Brazil, and Thailand.