Global electric-vehicle sales lost momentum in early 2026. According to PwC, across 43 key markets, first-quarter sales dipped just under 2.7 million units—a 1 percent decline versus the same period in 2025.

For a segment accustomed to double-digit growth, this marks a noticeable slowdown. EVs had been on a tear, with full-year 2025 sales jumping nearly a third. Now the picture is different: the market hasn't crashed, but for the first time in a long while it has shown global weakness.

The chief culprit is China. As the world's largest EV market, its performance has an outsized impact on the overall numbers. PwC tallied 1.32 million electric cars sold there in Q1, down 20 percent year-on-year. In the United States, the percentage decline was even steeper at 23 percent, to roughly 233,000 vehicles.

Europe, by contrast, posted gains. In the EU plus the UK, Iceland, Liechtenstein, Norway and Switzerland, EV sales rose 26 percent to nearly 724,000 cars. Germany and France were cited as key drivers, with strong electric model demand bolstering the regional figures.

Yet the dip in absolute numbers doesn't mean EVs are losing ground. In fact, their global market share hit 16 percent—a first-quarter record. The reason is straightforward: sales of pure internal-combustion vehicles fell even harder, by 8 percent. So while electric car volumes slipped, they became more prominent relative to the overall market.

PwC attributes China's decline largely to one-off factors, including subsidy cuts. The firm expects EV sales to rebound as early as the second quarter, given that underlying demand in China remains solid.

PwC partner Harald Wimmer acknowledged that the situation remains challenging, but noted European manufacturers have managed to narrow the gap. He pointed out that their new models are technologically mature and appeal to customers. On home markets this is already translating into higher sales volumes, which could be further supported by a potential surge in demand triggered by current fuel prices.

For European brands, the numbers are encouraging but don't answer the bigger questions. They still need to cut costs and accelerate technology updates, especially in the face of Chinese rivals that are adept at launching new models rapidly and competing aggressively on price.