Global EV Sales Slip 3% to 4 Million Units in Q1, China Still Leads

Global electric vehicle sales reached 1.75 million units in March 2026, up 66% month-on-month and 3% year-on-year, bringing total first-quarter sales to 4 million units, down 3% from a year earlier, according to data from Benchmark Mineral Intelligence.

The global EV market saw a sharp rebound in March following a low base in February.

China, which had been impacted by the Lunar New Year holiday, experienced a rapid recovery in both production and consumption, driving the global uptick.

China’s market rebounded strongly month-on-month in March, with sales nearly doubling compared to February.

However, amid policy adjustments, domestic demand remained subdued, with first-quarter sales falling 21% year-on-year to 1.9 million units, accounting for nearly 50% of global EV sales.

Exports continued to shoulder growth momentum, but overseas registrations lagged behind export volumes, leading to rising inventory levels and indicating a growing mismatch between supply and demand.

In Europe, EV sales exceeded 500,000 units in March for the first time, rising 72% month-on-month and 37% year-on-year to a record high. First-quarter sales reached 1.2 million units, up 27% year-on-year.

The recovery was supported by the reinstatement of subsidies and rising fuel prices.

Markets including the UK, France, Italy, and Spain all recorded strong growth, while Chinese brands continued to expand their share in Europe’s battery electric vehicle segment.

Data from Dataforce shows that in the first quarter of 2026, Leapmotor captured nearly 30% of Italy’s BEV market. Combined with other Chinese brands, total market share approached 40%.

In contrast, the North American market continued to weaken. First-quarter EV sales fell 27% year-on-year to 320,000 units, with declines of 27% in the United States and 25% in Canada.

Although U.S. EV sales recovered to over 100,000 units in March, marking the highest level since the removal of tax credits in 2025, the overall downward trend has yet to reverse.

Automakers are also scaling back strategies. Honda has canceled its 0 Series EV program, while the Afeela project developed in partnership with Sony has also been terminated, signaling a slowdown in electrification efforts.

Other global markets continued to post strong growth from a low base. First-quarter sales rose 79% year-on-year to 600,000 units, with New Zealand recording a 263% year-on-year increase in March BEV registrations and Australia up 89%.