George Whitcombe

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.

With the abrupt end of Canada’s initial electric vehicle (EV) subsidy scheme, the iZEV program, in January 2025, as well as the deterioration of its trading relationship with the US throughout that year, EV sales in the country declined 38% compared to 2024. In the opening months of 2026, however, Canada has sought to reinvigorate its EV market. First, it has struck an agreement with China to allow up to 49,000 Chinese-made EVs into the country at a tariff rate below 100% for the first time since 1 October 2024. More recently, it has launched its new EV subsidy scheme, the ‘Electric Vehicle Affordability Program’.

Interest in EVs rose globally in March 2026 amid higher fuel prices due to the ongoing conflict in the Middle East and the closure of the Strait of Hormuz. A significant number of markets around the world experienced greater EV sales growth after the conflict broke out than before. Sales of passenger car and light duty EVs in Europe were up 33% year-on-year in March, having grown just 19% year-on-year in the first two months of the year.   China-made EVs have been a major driver of rising global demand and have benefited the most from the surge, with sales in Europe increasing 78% year-on-year in March, up from 39% growth recorded over the first two months of the year. Translating to a boost in their European EV market share, which rose from 20% in January and February to 24% in March.

The import of passenger car and light duty EVs (PC & LDV EVs) into Mexico increased to record levels in December 2025, with over 50,000 units imported. The spike in imports was driven by Mexico raising tariffs on vehicles from 20% to 50%, effective from January 1 2026. The move to raise tariffs was in part due to pressure from the US government to curb China’s growing presence within the Mexican economy.

The share of range extended electric vehicles (REEV) share in China’s EV market sales has risen from nothing in 2019 to over 12% in the first two months of 2026. This growth has been supported by investment into model development, resulting in over 40 models now being available in China. In Europe and the US, the powertrain remains a largely unexplored technology, with just six models ever being released by a non-Chinese brand and an EV market share of less than 0.5% in both markets.

Total battery demand from EVs grew 4% in the January and February 2026 compared to the same two-month period last year, despite sales of EVs themselves falling by 8%.  The contraction in EV sales has been offset by a growing average battery pack size, resulting in a rise in battery demand for EV applications. Pack sizes have been growing in passenger cars and light duty electric vehicles (PC and LDV EVs). This trend has been supplemented by growing sales of electric buses and trucks, which have pack sizes several times larger than those for PC and LDVs.

South Korea’s passenger car and light duty electric vehicle (PC & LDV EV) market more than tripled month-on-month to over 37,200 EV sales in February 2026.

EV-only manufacturers performed poorly relative to their expectations in 2025, with Xiaomi and Xiaopeng Motors the only notable exceptions.

Norway’s passenger car and light duty electric vehicle (PC & LDV EV) sales dropped 71% in January 2026 compared to the opening month of 2025 to just over 2,800 units.

Thailand’s electric vehicle (EV) sales (passenger car and light duty vehicles) more than tripled year-on-year to over 44,000 units in January 2026, a record month for the country

Production of the Model S and Model X will cease at the end of Q2 2026, with Tesla to repurpose the floor space at its Fremont production facility for Optimus, its humanoid robot, assembly.