[DigitalToday reporter Yoonseo Lee] The global EV market showed a sluggish trend in January 2026. EV sales fell as tax incentives in China and the United States were reduced or ended, but growth continued in Asia and some emerging markets, underscoring clear regional differences.

Cleantechnica on Wednesday cited a January EV sales trend report as saying plug-in vehicle registrations fell 6% from a year earlier to about 1.2 million units. Battery electric vehicles fell 4% and plug-in hybrids dropped 8%. It is unusual for both categories to decline, a trend seen as reflecting the impact of reduced incentives in the United States and China. Excluding China and the United States, EV sales rose instead, an analysis said, suggesting policy shifts in major markets had a bigger impact than a broad global slowdown.

By market share, plug-in vehicles accounted for 18% of the global auto market in January 2026, with BEVs at 12%. Growth was particularly strong in less-scrutinised countries. Among markets with more than 1,000 registrations in January, many Asian countries including India, Indonesia, Malaysia, the Philippines, Singapore and South Korea posted growth of more than 100%. Azerbaijan, Belarus, Poland and Uruguay also showed strong increases.

Chinese companies' expanding exports are also influencing changes in market structure. As Chinese automakers accelerate overseas expansion to make up for low profitability at home, price competition is intensifying in export markets and EV choices are widening. This is also increasing the burden on established automakers centred on internal combustion vehicles, and in some markets Chinese companies are also taking overwhelming market share.

What about actual sales volumes? By model, Tesla's Model Y stayed in first place with 53,074 units sold. That was down 7% from a year earlier. Even so, the gap with second place was about 15,000 units, keeping a comfortable lead. Xiaomi's YU7 rose to second in a surprise move, and Geely's Xingyuan (EX2) took third with about 31,000 units sold.

Tesla's Model Y stronghold does not appear to be immediately threatened. Xiaomi's YU7 is currently sold effectively only in the China market, and Geely's Xingyuan is also only at a stage where exports are just beginning to ramp up. If Chinese EVs expand overseas, a more full-fledged competitive landscape could form.

Tesla's Model 3, by contrast, showed a pronounced slump. January sales were below 15,000 units, a 47% drop from a year earlier. That was the lowest level since April 2020, when the COVID-19 shock was severe. The Model 3's ranking fell to 10th as a result.

In the upper ranks, advances by large Chinese EVs also stood out. The AITO M7 ranked fourth, while BYD's Song, which was second last year, slipped to fifth. BYD Song's January sales were 26,608 units, down 44% from a year earlier. Its overseas sales share rose to as high as 66%, and an analysis said it is still maintaining competitiveness outside China.

Other new models from Chinese automakers including the NIO ES8, Fang Cheng Bao Tai 7 and Li Auto i6 also entered the top ranks in large numbers. In particular, the presence of startup models grew significantly in the top tier in January this year. In the same period last year, only 1 startup model accounted for half of the top tier, but this year that number increased to 5.

Falling sales in the China market, meanwhile, provided European brands with a temporary chance to rebound. The BMW X1 PHEV/iX1, Skoda Elroq and Renault 5/Alpine A290 entered the top 20, and in Japan Toyota's BZ4X performed strongly, ranking 13th with 10,738 units sold.

Ultimately, an analysis says the global EV market in January this year went through a short-term adjustment due to policy changes in the United States and China, but it is hard to say the overall growth engine has been derailed. With growth in Asia and emerging markets, expanded exports by Chinese companies and advances by startup brands overlapping, competition in the EV market is expected to intensify further.