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U.S. EV Sales Off Global Trend

Worldwide deliveries rose 20% in 2025, but American demand dropped sharply in the fourth quarter when a federal incentive ended, cutting sales 4% year-over-year.

January 15, 2026
man holding up sales report and pointing with pencil

EV sales in the U.S. are expected to decline by 29% in 2026, according to Rho Motion.

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2 min to read


Global electric-vehicle sales jumped 20% in 2025 with nearly 21 million units sold, reported Rho Motion based on data from Benchmark Mineral Intelligence. But North America didn't join in the upswing, instead declining by 4% year-over-year. 

“In North America, it will come as no surprise that the year has been tumultuous for the region,” said Benchmark Mineral Intelligence Data Manager Charles Lester. “A year on from (U.S. President Donald) Trump’s inauguration, he has delivered on many of the promises he made to roll back the EV buying incentives and is attempting to domesticate manufacturing.”

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August and September saw record EV sales in the U.S. as consumers raced to take advantage of the federal tax credit that expired on Oct. 1 The following fourth-quarter sales decline was therefore expected, and as a result U.S. EV sales grew by just 1% over the course of the year. The Canadian EV market also fell after the removal of subsidies in early 2025, resulting in a 41% drop in sales over the year. 

The future of the U.S. EV market looks weak, according to the report, with sales expected to decline by 29% in 2026. Over the next few years, several range-extended electric vehicles, or REEVs, are slated to enter the U.S. market and “are well aligned with North American consumer preferences for larger vehicles and reduce[d] reliance on charging infrastructure by not operating solely on electricity.” Plug-in hybrid electric vehicle interest is also waning. Stellantis, for instance, is planning to cut its entire PHEV lineup this year. 

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