Electric vehicle sales set to experience slowest growth since the pandemic
Electric vehicle sales are set for their slowest annual growth since the pandemic damaged sales in 2020, as demand for the vehicles weaken.
First reported by the Financial Times, electric vehicle (EV) sales are expected to reach just 13 per cent to 24m in 2026, down from an estimated 22 per cent increase last year, according to research firm Benchmark Mineral Intelligence.
The Trump administration’s decision to scrap incentives for EVs, coupled with the EU weakening a ban on petrol cars set to take effect from 2035 and a cooling of demand in China will shape the industry’s 2026 performance according to analysts and executives.
The fall in sales outlook follows years of surging China-led demand, that appeared to be leading the demise of petrol based cars.
Chinese market
According to Benchmark, US sales will tumble 29 per cent to 1.1m vehicles in 2026, after reaching a record breaking 1.5m in 2025.
Sales in Europe are predicted to rise 14 per cent to 4.9m, following a an estimated 33 per cent increase last year, while China, the largest EV market, are forecast to see sales hit 15.5m, up from 13.3m in 2025.
The projected growth in China is below that recorded in the five years leading to 2025, when sales, including those of plug-in hybrids, rocketed from 1.1m to over 13m.
Chinese manufacturers, led by electric vehicle and rechargeable batteries specialist BYD, also helped spur sales in Europe, through the rollout of cheaper models, undercutting both European and US carmakers.
According to figures released this week, BYD overtook Tesla as the world’s biggest electric-car maker in 2025, as the Chinese group continued to take up more space in overseas markets.
Hybrid sales
Despite the expected drop in overall EV sales, executives expect a continued pick-up in sales of hybrids and plug-in hybrids, which have grown more popular as poor charging infrastructure turned consumers away from purchasing completely electric vehicles.
Ford chief executive, Jim Farley, told the Financial Times: “Both markets are learning that partial electrification is as interesting as full electrification.”
Farley added that EV’s share of the new car market in the US could fall from the approximate 10 per cent recorded last year to five per cent in the near term.
In contrast to the struggling US market, executives expect the Chinese market to continue to grow in 2026, but slower than recent years.
UBS also predicts sales in China will inch up eight per cent this year.