It has been no secret that U.S. demand for electric vehicles has taken a sharp downturn since the government allowed the $7,500 tax credit for new EVs and the $4,000 credit for used EVs to expire last September. U.S. EV market share fell to 5.7% in the fourth quarter of 2025, down from 8.7% a year prior and 10.5%, the all-time high hit during the third quarter, according to CarEdge.Globally, battery electric vehicles are more popular than ever, thanks to consumers in the European Union and China.But now, even China is starting to lag amid a downturn in its entire auto industry that is affecting more than just EVs. So the EU has had to pick up the slack, and despite being weighed down by the U.S. and China, global EV sales are rising, thanks to buyers across the pond.EU leads global EV sales higher as China, U.S. sputterEuropean Union car buyers are choosing electric vehicles by the millions, leading global demand for EVs to tick higher for the fourth consecutive month, despite headwinds from China and the U.S., which are two of the three biggest car markets in the world. According to Benchmark Mineral Intelligence (BMI), which specializes in EV and battery supply chain research, 2 million electric vehicles were sold globally in June, bringing year-to-date EV sales to 9.6 million. EV sales increased by 7% year-over-year and by 11% month-over-month.”The global EV market’s regional divergence continued in June 2026. Europe remains the main engine of growth after another record month for EV sales, bringing year-to-date growth up to 27% compared to the same period in 2025,” said George Whitcombe, BMI senior EV analyst. According to Whitcombe, the growth is being helped by subsidies and elevated fuel prices, but the real secret ingredient is the increasing number of “small segment EVs” from European car makers. “With these small EVs strongly supported by legislation in the region, they are an area to watch in terms of supporting growth in the coming months and into next year,” Whitcombe said. Battery electric vehicle sales accounted for 42% of sales in China in May, about 8x higher than the U.S. market share, reported CleanTechnica. And while the Chinese government hasn’t fully abandoned its incentive program, it is offering fewer incentives.China’s EV market share was achieved in large part because gas-powered vehicles took such a large dip that month, with sales falling 39% year over year and hybrid electric vehicle sales falling 25% in the month, GlobalData shared.BEV sales rose 4% that month, but that has been an outlier month for China. So far this year, EV sales in 2026 are down 14% year-over-year in China, and were down 11% year-over-year in June, Electrek noted.That decline in China is helping spur the growth in Europe as Chinese automakers look to increase their exports into the market. Chinese OEMs exported a record almost 500,000 units in June, according to CnEVPost.Meanwhile, in North America, EV sales are down 20% year to date, ElectricCarsReport noted.”The North American EV market remains hampered by weaker legislative drivers and a lack of subsidy support in the U.S.,” Whitcombe said. “Overall, the global EV market continues to be defined by its mixed trajectory amid changing policy environments and China’s EV export push.”
Battery electric vehicle sales accounted for 42% of sales in China in May, about 8x U.S. market share.Tashdique Mehtaj Ahmed / Getty Images
EVs have extra costs ICE vehicles don’tIt’s not as if Americans are completely against electrified vehicles. When combined with plug-in hybrids, electrified vehicle sales represent 20% of the total market, according to Edmunds. While that pales in comparison to the 69% market share in the EU, one in five isn’t a bad ratio.But one of the biggest issues with EVs is that they get old fast. Much faster than gas-powered vehicles.The average 5-year depreciation cost across all vehicle types is around 46%, according to Recharged, but recent studies show EVs lose around 60% of their value over that time period. Purely gas vehicles typically lose between 40% and 50% in the first five years.However, the financial ramifications of that depreciation are somewhat offset by studies showing that EVs typically cost between 35% and 50% less in routine maintenance since there is no need for oil changes, exhaust repairs, or any of the multitude of other issues that come with internal combustion engines.EV owners typically spend only between $150 and $300 a year on basic service, compared to between $900 and $1,800 for gas-powered vehicles.One of the biggest causes of depreciation for EVs is rapid tech turnover. With all of the technology powering them, EVs become outdated faster.EVs are also 20% more expensive to repair after a collision than gas-powered vehicles.Related: China is about to repeat an EV move that blindsided U.S.