Electric Vehicle Market: European Growth Continues Amid US Stagnation

Global Market Overview

The global electric vehicle (EV) market maintained a growth trajectory in October 2026. According to data from Benchmark Mineral Intelligence, 2.09 million electric vehicles were sold worldwide last month, marking an 8% increase year-on-year. While sales saw a 3% decline compared to September, the total for the first 10 months of the year reached 17.5 million units, a 5% increase over the same period last year.

Impressive Results in Europe

The European market was particularly active in October, with 510,000 EVs sold, representing a 36% annual increase. The battery electric vehicle (BEV) segment was especially notable, recording growth of 49%. Total EV sales in Europe for 2026 have now reached 4.5 million.

Germany, Europe's largest automotive market, saw the share of EVs in new car registrations rise to 45%, the highest level since December 2022. Furthermore, in Portugal, electric vehicles accounted for 55% of all new car sales in October, highlighting the positive momentum across the region.

North America: Illusory Growth

In North America, EV sales reached 130,000 units, marking the first annual growth (24%) of 2026. However, analysts are viewing this result with caution. October 2025 was the first month following the removal of federal tax credits in the US, which caused a sharp decline in sales at the time. Consequently, the growth in October 2026 reflects a comparison against a "low base" rather than a genuine recovery in demand. The market has stabilized, but at a significantly lower level than during the period of tax incentives.

China and Emerging Markets

In China, the world's largest EV market, sales fell by 12% year-on-year to 1.14 million units. Nevertheless, Chinese companies continue to export aggressively, shipping nearly 600,000 vehicles abroad in October, a record figure. This sector faces future challenges as the European Union imposes restrictions on hybrid vehicle imports, and China prepares to reduce VAT subsidies for exports starting in April 2027.

Outside of Europe, China, and North America, EV sales grew by 85%. Australia and Brazil have been particularly prominent. However, in the case of Brazil, the growth is partly driven by temporary factors, such as a fuel crisis and imports made ahead of tariff changes. The global transformation of electric mobility continues, though the process in each region is shaped by local political and economic factors.