Electric car sales return to growth, but demand falls in China
Global sales of electric and plug-in hybrid vehicles reached 2.09 million in October, up 8% from a year earlier. The market returned to growth after September’s decline, but regional differences remain significant. Sales rose by 36% in Europe while falling by 12% in China. Exports by Chinese carmakers are playing an increasingly important role in offsetting weakness in their home market.
Europe outpaces the global market
According to research firm Benchmark Mineral Intelligence, global sales of electric cars and plug-in hybrids reached 17.5 million vehicles in the first ten months of 2026, up 5% on the same period last year.
October sales rose by 8% year on year but were 3% lower than in September. The figures cover both fully electric cars and plug-in hybrids, not just battery-electric cars.
Sales of electric and plug-in hybrid vehicles in Europe reached 510,000 in October, up 36% from a year earlier. Fully electric car sales rose by as much as 49%, while plug-in hybrid sales increased by 7%.
In Germany, electrified vehicles accounted for more than 45% of new car sales, while fully electric car sales rose by nearly 80% to more than 95,000 vehicles.
In the UK, sales of electric and plug-in hybrid vehicles increased by 30%. Growth is supported by an expanding model range, purchase incentives, fuel prices and European emissions requirements.
China’s sales fall, but exports set records
China remained the world’s largest electric car market in October, with 1.14 million vehicles sold. However, sales fell by 12% year on year.
It is important to note that China’s overall passenger car market is shrinking even faster. As a result, electric cars are increasing their share of new vehicle sales despite falling sales volumes in absolute terms.
Chinese manufacturers are offsetting weakness in their home market through exports. Nearly 600,000 new-energy passenger cars were exported from China in October, setting a new monthly record.
This is intensifying competition in Europe. BYD, Geely, Chery and other Chinese groups are seeking new sales opportunities in regions where demand for electric cars is growing.
For European manufacturers, this means greater price pressure, but for buyers it means more choice.
US sales growth is statistically misleading
Sales of electric cars and plug-in hybrids in North America rose by 24% in October to 130,000 vehicles.
Despite appearing strong at first glance, the result does not mean demand has fully recovered.
The US ended its federal electric car purchase incentive at the end of September 2025. The subsequent sales decline made October 2025 an exceptionally low comparison base.
This year’s growth therefore partly reflects a statistical rebound rather than a new buying boom.
Sales in North America over the first ten months of the year remain 21% below last year’s level.
Benchmark estimates that the US electric car market has stabilised at a lower level following the withdrawal of incentives.
Chinese carmakers increase sales in new markets
Outside China, Europe and North America, sales of electric and plug-in hybrid vehicles rose by 85% in October to 300,000 cars.
The Australian and Brazilian markets are growing particularly quickly. Sales in Australia increased by more than 200% year on year.
The rapid expansion of Chinese carmakers is partly driving this growth. At the same time, the increasing number of car brands is putting pressure on dealer profitability.
In Brazil, electric car sales are supported by higher fuel prices, changes to import tariffs and the expansion of BYD’s local production.
These factors show that growth in the global electric car market no longer depends solely on China, Europe and the US. Countries where electric cars have so far accounted for a smaller share of the market are becoming increasingly important.
Both an opportunity and a threat for Europe’s car industry
October’s results confirm that global electric car sales are still growing, but the market is developing at very different rates across regions.
Europe is currently one of the main drivers of growth. This creates opportunities for Volkswagen, Renault, BMW and other European manufacturers, but also attracts an increasing number of Chinese competitors to the market.
The biggest challenge for Europe’s car industry is no longer simply to increase demand for electric cars, but to produce them at a competitive price. If China’s domestic market remains weak, exports to Europe could increase further.
For buyers, international competition primarily means a wider choice of models. However, demand for electric cars continues to depend on purchase prices, charging options and running costs.
One successful month of sales does not prove a sustained recovery across the global market, but Europe’s strong growth shows that electrification has by no means stalled.
