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EV Market Diverges: New Sales Slide as Fuel Shock Lifts Interest and Used Prices Fall

Expired incentives are curbing new‑EV demand in China and North America, with Europe still growing.

Tesla electric vehicles are parked in a storage lot outside a disused movie theatre in Scottsdale, Arizona, U.S. June 11, 2024.  REUTERS/Go Nakamura
An electric vehicle charges at a station Wednesday, March 11, 2026, in Lincolnwood, Ill. (AP Photo/Erin Hooley)
A Volkswagen ID. UNYX 08 electric vehicle (EV) sits on a production line at the Volkswagen Anhui factory in Hefei, Anhui province, China, February 4, 2026. REUTERS/Florence Lo
An electric vehicle charges at a station Wednesday, March 11, 2026, in Lincolnwood, Ill. (AP Photo/Erin Hooley)

Overview

  • Global EV registrations fell 11% in February, with China down 32% and North America down 35% to under 90,000, while Europe rose 21%, according to Benchmark Mineral Intelligence.
  • U.S. used EV sales reached 31,503 in January, up about 21% year over year, as the price premium over comparable gas cars narrowed to $1,376, Cox Automotive reported.
  • A spike in gasoline prices pushed shopper interest in electrified vehicles to 22.4% of Edmunds research activity in the week starting March 2, up from 20.7% the week prior.
  • Off‑lease returns, Tesla price cuts and Hertz fleet disposals are expanding affordable used EV inventory, with average used EV prices around $28,000–$29,000 in the U.S.
  • Policy shifts are reshaping China’s market, where Volkswagen regained the top sales spot as subsidies fade; Tesla bucked the downturn with a 91% February sales jump reported by Dongchedi.