George Whitcombe

While countries including the US, Turkey, and Mexico have been ramping up tariffs on electric vehicles (EVs) made in China, EV imports from China into the UK have continued to face a standard 10% import duty. The UK’s largest trading partner, the EU, introduced tariffs on China-made BEVs in 2024. In 2023, the last year when EVs made in China did not face additional tariffs from the EU, they accounted for 17% of total EV sales within the bloc. They broadly maintained this share until 2026, when over the first eight months of the year that share increased to 22% as Chinese automakers push into overseas markets against the backdrop of their subdued domestic environment. In comparison, China-made EVs accounted for 19% of EV sales in the UK in 2023, with that figure rising to 33% so far in 2026.

The European Union has asked China to voluntarily reduce its exports of hybrid electric vehicles into the bloc in a bid to improve the competitiveness of its domestic vehicle market. Chinese electric vehicle (EV) exports have reached new highs in 2026, with consistent monthly records set between March and July this year.

Tesla sold just over 6,500 EVs in Europe in July 2026, its lowest monthly level in the region since October 2022. Its sales in the region fell 53% year-on-year, with Germany and the UK, the region’s two largest automotive markets, registering just 367 and 512 Teslas, respectively.  Tesla’s heavy sales decline in July contradicts the strong performance it had in the region across the opening six months of the year, with sales rising 39% compared to the opening six months of 2025. However, following a weak July, its year-to-date growth in the region has dropped to 30%.   "While Tesla’s deliveries in Europe were unusually low in July, it followed a very strong end to Q2 where Tesla will have concentrated its efforts on maximising deliveries before the end of the quarter. Tesla had a strong opening six months of the year in Europe and there as signals that this is expected to persist despite the drop in July," said George Whitcombe, Benchmark's senior EV analyst.

Much of the attention on South & Central America’s transition to electric vehicles (EVs) focuses on Mexico and Brazil owing to their large total vehicle markets and automakers establishing EV production capacity in both.  However, it is Uruguay that has quietly risen to lead EV adoption in the region. It achieved a penetration rate of 40% over the first seven months of the year, surpassing numerous European countries, including France, Germany and the UK.  "Uruguay is a testament to how tax policy can be a really effective tool to create quick change regarding EV adoption in a relatively short period of time under the right market and economic conditions,” said Benchmark EV analyst George Whitcombe. 

Benchmark Mineral Intelligence, specialising in EV and battery supply chain research and insights, reports that 1.85 million electric vehicles (EVs) were sold globally in July 2026, bringing year-to-date (YTD) 2026 EV sales to 11.5 million. In July 2026, EV sales increased by 9% year-on-year (y-o-y). 

Geely electric vehicles (EVs) will begin production at Ford’s facility in Valencia, Spain, in 2028. The two automotive brands have formed a Europe-focused joint venture that seeks to revitalise Valencia amid growing cost pressures and competition. The new partnership will manufacture two electric Geely SUVs as well as a new multi-powertrain Ford crossover. While Chinese automakers are increasingly looking towards overseas EV markets for growth against a backdrop of a subdued domestic EV market, the expansion of Geely’s Chinese EV brands into Europe has been much less pronounced than BYD and Chery.

VW Group plans to halve its model lineup as part of an upcoming restructure where it aims to cut costs by 20% and to keep the group competitive in a shifting automotive industry. Although an initial proposal to close production facilities as part of the restructure was rejected by the board, it has been reported that four facilities in Germany remain under consideration for closure due to high costs. The four sites, all of which produce electric vehicles (EVs), include an Audi site in Neckarsulm, as well as Volkswagen plants in Zwickau, Emden and Hanover.

Benchmark Mineral Intelligence, specialising in EV and battery supply chain research and insights, reports that 2.0 million electric vehicles were sold globally in June 2026, bringing YTD 2026 EV sales to 9.6 million. In June 2026, EV sales increased by 7% year-on-year (y-o-y) and by 11% month-on-month (m-o-m).

The European Commission is looking to impose additional countervailing duties on PHEVs made in China, with an anti-subsidy investigation reportedly underway. Chinese BEVs have been subject to countervailing duties since late 2024 at differing levels by firm, prompting several Chinese vehicle manufacturers to turn to PHEVs for sales growth in the region. In 2025, sales of PHEVs made in China increased more than four-fold compared to 2024 in the EU and sales have risen significantly again in 2026, with a threefold increase in the opening four months of the year compared to same period in 2025.

VW Group has started series production of its ‘Electric Urban Car Family’ series with the Volkswagen ID.Polo and Cupra Ravel in Martorell, Spain. Assembly of the Skoda Epiq started just days later at the automaker’s facility near Pamplona, Spain, the same site that will also produce the Volkswagen ID.Cross from later this year. While other European vehicle manufacturers have launched several small segment EVs, such as the Renault 5 and Citroen eC3, over the past two years, this is the first time the lineup of the region’s largest automotive group has offered vehicles in this segment since the all-electric Volkswagen UP! was discontinued in 2023.

Battery cells made in Europe met 48% of the battery demand from new passenger car and light duty EVs (PC & LDV EVs) sold in EU & EFTA & UK in the opening four months of 2026. Cells made in China accounted for 47% of battery demand from new PC & LDV EVs sold in the region, while 5% came from other countries in Asia. Benchmark’s EV & Battery Database contains a new column outlining the cell production location for each EV model. This update provides increased granularity on the trade flows for battery cells, tracking where they are produced, assembled within an EV, and where that EV is sold.

BYD is negotiating with European vehicle manufacturers including Stellantis to utilise their underutilised production facilities in Europe, including in Italy. It follows an agreement between Stellantis and Leapmotor, struck earlier in May, for the latter to utilise Stellantis factories. BYD’s sales of passenger car & light duty EVs (PC & LDV EVs) more than doubled in Europe in the first three months of 2026 compared to the same period in 2025. This growth has been supported by the ramp-up of PHEV deliveries as well as new model launches.