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Global EV Sales Slip in January After China Reinstates Purchase Tax

A reset of incentives created a short‑term demand trough at the start of 2026.

Overview

  • Worldwide EV deliveries totaled about 1.2 million in January 2026, down 3% year over year and 44% from December, according to Electrek data cited by Yahoo Finance.
  • China’s market weakened sharply with sales down 20% year over year and 55% month over month after a 5% purchase tax returned and trade‑in support was pared back, Benchmark Mineral Intelligence reported.
  • North American sales fell 33% year over year, with the U.S. logging its lowest monthly EV tally since early 2022 following the expiration of federal tax credits in September 2025.
  • Europe showed relative strength with more than 320,000 EVs sold, a 24% annual increase despite a month‑to‑month decline, helped by renewed subsidies and efforts to meet EU emissions targets.
  • Automakers including Ford, General Motors and Stellantis have adjusted plans and recorded sizable write‑downs as demand cooled, while smaller markets such as South Korea, Brazil and Thailand posted rapid growth.