Global EV registrations decline as China and U.S. adjust policies

EV registrations worldwide declined by 3% in January as policies take shape in China and the U.S. Global car manufacturers with significant exposure to the U.S. market are pulling back on advancements in their Electric Vehicle ambitions, citing challenging market conditions under Trump’s administration.

The number of electric vehicle registrations worldwide, measured by registrations, dipped by 3% in January, settling at 1.2 million units, including battery-powered electric vehicles and hybrid cars. The decline is primarily due to policy changes in both China and the United States. 

EV registrations drop by 20% in China and 33% in the U.S., BMI data shows

According to data from Benchmark Mineral Intelligence (BMI), the EV sector corrected following the introduction of a purchase tax and lower EV subsidies in China, as well as regulatory shifts in the U.S.

The data shows that the numbers declined by 20% in China to below 600,000 units, the lowest numbers in the last two years. In North America, the decline was much steeper, dropping 33% to just over 85,000 units. In January, the U.S. sold the fewest electric vehicles since early 2022.

Global car manufacturers that heavily rely on the U.S. market have scaled back advances in the EV sector after they recorded $55 billion in writedowns in 2025 as market conditions toughened. The car makers cited increased trade wars between China and the U.S., as well as a complex mix of vehicle types in Europe, as the main reasons for scaling back on Electric Vehicles.

As electric registrations dip in China and the U.S., Europe showcased a different story. Electric car Sales in Europe grew by double digits to over 320,000 units, logging a 24% month-over-month increase. However, the growth rate was the slowest since last February, according to BMI data. The rest of the world racked up their purchases, pushing EV registration numbers to just under 190,000, representing a 92% surge. Major buyers resided in Thailand, South Korea, and Brazil.

BMI data manager Charles Lester said that the growing number of EV exports from China is likely to continue throughout the year. He also noted that more exports will likely flow to Southeast Asia, where growth has been concentrated.

Honda’s third-quarter profit declines by 61% following Trump’s tariff changes 

As the EV sector stabilizes, car manufacturers are feeling the impact. Japanese car manufacturer Honda reported that its third-quarter profit declined 61% to ¥153.4 billion (about $1 billion). Cryptopolitan’s previous coverage highlighted that the company incurred heavy losses on units exported to the U.S. market due to Trump’s tariffs, which hit its business hard. 

The company also saw a significant decline in sales revenue, which fell from ¥16.33 trillion ($107 billion) to ¥15.98 trillion ($102.6 billion), while the operating profit sank from ¥1.14 trillion ($7.4 billion) to ¥591.5 billion ($3.86 billion). The profit before income taxes declined 37% to ¥771.7 billion ($5 billion) while the operating margin slid to 3.7% from 7.0%.

Competition in the Electric Vehicle sector has also grown significantly in recent years. Recently, South Korean carmaker Hyundai announced it was preparing to roll out five new electric and hybrid vehicles over the next 18 months to challenge Chinese rivals in Europe. According to the report, the company aims to electrify all Hyundai models by next year to meet the EU’s emissions rules. The rules require car manufacturers to reduce their carbon emissions by selling more electric cars or buying carbon credits, or face massive fines.

As the EV sector continues to develop, electric car owners in the U.S. have unlocked a new way of using their cars besides driving. According to a recent report by Cryptopolitan, U.S. users have been using their electric vehicles to power their homes amid ice storms, freezing temperatures, and blackouts.

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