German Media: Global EV Sales Drop Unusually in First Quarter, Weak Demand in China and U.S.

The global electric vehicle (EV) market, long characterized by sustained growth, hit the brakes in the first quarter of 2026. According to a PwC analysis of 43 major markets, global sales declined by 1% year-on-year, with particularly sharp drops observed in China and the United States. Nevertheless, EVs achieved an all-time high market share for this period. Amid adjustments to subsidy policies and geopolitical factors influencing oil prices, European automakers are striving to regain ground through new model launches.

Signs of weakness emerged in global EV sales during the first quarter. Data from consulting firm PwC, based on analysis of 43 key markets, revealed a year-on-year decline of 1%, with sales slightly below 2.7 million units. PwC noted that given the consistent growth the EV market had previously experienced—achieving nearly a 30% increase in 2025—this current downturn is exceptionally rare.

Significant Decline in Demand in China and the U.S.

The decisive factor behind the weak data was the sluggish demand in the world’s largest market—China. According to PwC statistics, China’s EV sales in the first quarter reached 1.32 million units, down 20% year-on-year. The decline in the U.S. was even steeper, falling by 23% to just under 233,000 units.

Although growth in other regions of the world failed to fully offset this trend, the European market—including the EU, UK, Iceland, Liechtenstein, Norway, and Switzerland—recorded a 26% increase in sales, reaching nearly 724,000 units. Strong sales performances in Germany and France were the primary drivers of this regional growth.

Market Share Reaches All-Time High

Despite the drop in absolute sales volume, the significance of EVs globally continues to rise. This is mainly due to an even sharper decline in pure internal combustion engine (ICE) vehicle sales, which fell by 8%. PwC reported that EV market share reached 16% in the first quarter—the highest level ever recorded for this period in history.

PwC believes the downturn in the Chinese market is largely attributable to one-time effects such as reduced subsidies, and the market trend has now begun to rebound. The consultancy expects pure EV sales to recover again in the second quarter.

European Manufacturers Accelerate Catch-Up

PwC partner Harald Wimmer stated that despite challenging conditions, European manufacturers have already caught up. He believes new models launched by European automakers align well with consumer preferences.

Wimmer pointed out that this trend is reflected in increased sales within Europe’s domestic market. Additionally, high fuel prices driven by the ongoing Iran conflict may further boost demand for EVs. However, the expert also cautioned that European automakers still need to take action in cost control and innovation speed.

Source: DW

Original Article: toutiao.com/article/1864219895161856/

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