The global electric vehicle (EV) market has reached a milestone, with sales of 1.1 million units in February 2026, according to new data from Benchmark Mineral Intelligence. This represents a 11% year-over-year decline and an 11% drop compared to January's total. The global EV market is now showing increasingly sharp regional contrasts.
The main growth engine for the global EV market is Europe, where sales are surging. In contrast, North America is seeing a steep slowdown, with China adjusting to new policies at home. This regional divide is having a significant impact on the industry, with some countries experiencing rapid growth while others are struggling to keep up.
Europe's EV market rose 1% month-over-month in February and is now up 21% year-to-date. Germany and France are leading the region's growth, with EV sales in Germany increasing by 26% so far this year. The country's introduction of a new subsidy program at the start of 2026 has been a key factor in its rapid growth.
The Italian market is also seeing rapid growth, with EV sales jumping 23% month-over-month in February. This surge follows the Italian government's launch of a new subsidy program in October 2025, which aims to increase EV adoption. Households can receive up to €11,000 ($12,700) in incentives, while smaller businesses can get up to €20,000 ($23,200).
In contrast, North America is seeing a steep slowdown. The US is driving most of this year-over-year decline, with many automakers reporting sharp drops in battery-electric vehicle sales. Ford's BEV sales are down 70% so far this year, while Honda's have dropped 81%, and Kia's are down 52%. This slowdown is starting to ripple through the supply chain, with battery manufacturer SK On laying off 37% of its workforce at its Georgia factory.
Canada's EV market is also down 23% year-to-date after February 2026. The country is trying to revive demand through policy changes, including an agreement with China that allows Chinese-made EVs to enter Canada with a reduced tariff rate of 6.1%. This agreement has opened up new opportunities for Canadian consumers and businesses.
China's EV market fell 32% in February compared to the same month last year. The decline comes as China reintroduced an EV purchase tax for the first time since 2014 and adjusted its trade-in program. However, EV exports from China are surging, with Chinese automakers shipping more than half a million EVs overseas in the first two months of 2026.
The global EV market is becoming increasingly uneven depending on policy, incentives, and trade rules. The most interesting takeaway here isn't the headline number; it's the growing regional split. Europe's EV market is accelerating thanks to the return of subsidies and policy support, while North America is heading in the opposite direction as the Trump administration works to deliberately harm its own EV market.
As the global EV transition continues, it's clear that the industry needs to adapt to these changing regional dynamics. With many countries experiencing rapid growth, it's essential for policymakers and businesses to work together to create a level playing field for all regions. The future of the EV market will depend on this ability to navigate these complexities and find solutions that benefit everyone.
