Global EV Sales Dip 3% in January 2026: A Regional Breakdown | Taha Abbasi

Global EV Sales Dip 3% in January 2026: A Regional Breakdown

Taha Abbasi provides a comprehensive analysis of global EV sales in January 2026, where 1.2 million units sold globally despite a 3% year-over-year decline driven by China’s policy changes.

The Global Picture

According to Benchmark Mineral Intelligence, 1.2 million EVs were sold globally in January 2026 — down 3% year-over-year and 44% from December 2025. While the headline number looks concerning, the regional breakdown tells a more nuanced story that Taha Abbasi finds instructive for understanding the EV transition’s real trajectory.

Region by Region

China, the world’s largest EV market, sold approximately 600,000 units — down 20% year-over-year and 55% from December. The decline was driven by new purchase taxes and reduced trade-in subsidies that took effect January 1.

Europe sold 320,000+ EVs, up 24% year-over-year, propelled by returning subsidies in the UK, Germany, and France. The US market showed modest growth but remains a fraction of China and Europe in absolute terms.

Taha Abbasi notes that the divergence between regions reflects the central role of government policy in EV adoption. Markets with new incentives grew; markets reducing incentives contracted.

What the Data Actually Tells Us

The 3% global decline is misleading without context. December 2025 was inflated by buyers rushing to purchase before subsidy changes in China and Norway. January’s “decline” is largely a mathematical artifact of that pull-forward effect.

Looking at the trailing 12-month average rather than month-over-month changes, global EV adoption continues to grow. The total cost of ownership advantage for EVs is real and growing, which provides a floor for demand regardless of subsidy fluctuations.

The 2026 Outlook

Most forecasters expect global EV sales to recover in subsequent months and finish 2026 with modest growth. The key variables: Chinese policy stabilization, European subsidy continuation, and whether the US market can accelerate despite federal regulatory rollbacks.

As Taha Abbasi argues, the EV transition is no longer a question of if but of how fast and how smoothly. January 2026 was a speed bump, not a reversal.

The Bottom Line

Global EV sales dipped 3% in January 2026 due to policy-driven distortions, not demand weakness. Taha Abbasi sees the regional divergence as proof that government policy remains the primary accelerant (or brake) for EV adoption in 2026.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com