Global EV Sales Hit 1.8 Million in May, Europe Leads While China’s Exports Set New Record

According to the latest data from Benchmark Mineral Intelligence, global electric vehicle (EV) sales reached 1.8 million units in May 2026, with cumulative sales for the first five months totaling 7.5 million units — up 0.9% year-on-year. While overall growth remains modest, regional divergence is intensifying: Europe posted strong gains, North America continued to face headwinds, and while China’s domestic market remains sluggish, its export performance repeatedly shattered records.

Europe Emerges as Largest Growth Engine

In May, European EV sales hit 420,000 units — up 23% year-on-year and up 2% month-on-month; cumulative sales for the first five months totaled 2 million units, a 26% increase YoY. Policy incentives and persistently high fuel prices provided dual support — especially amid ongoing Middle East tensions, where gasoline and diesel price trends will remain a key variable over the coming months.

Notably, despite the EU’s imposition of anti-subsidy tariffs on Chinese battery-electric vehicles, Chinese brands continue accelerating market penetration. So far this year, 32% of all EVs sold in the UK were manufactured in China; the figures stand at 14% in Germany and 10% in France. A deeper trend is “local production”: Stellantis confirmed it will begin manufacturing the Leapmotor B10 at its Zaragoza plant in Spain in H2 2026, with plans to introduce three additional Leapmotor models later; SAIC-MG announced construction of a new factory in Spain with an annual capacity of 120,000 units (scheduled to reach full output by 2028); BYD’s Hungarian plant is expected to commence operations by year-end, while its Turkish factory plan has been postponed.

North America Remains Weak; Canada Emerges as New Breakthrough Market

The North American market continued its downward trajectory: May sales totaled just 120,000 units — down 26% YoY — and cumulative sales for the first five months stood at 580,000 units, down 25% YoY. Key drivers include automakers scaling back EV investments, the expiration of the U.S. federal EV tax credit in September 2025, and weakening overall policy support.

Against this backdrop, Canada has emerged as a vital growth market. The country has reached a tariff quota agreement with China, allowing up to 49,000 Chinese-made EVs per year to enter at preferential rates. BYD announced it will officially launch in Canada by end-2026, opening over 20 stores across Toronto, Vancouver, Montreal, and Calgary, with initial models including the Atto 3, Seal, Dolphin, and Seagull.

China: Weak Domestic Demand, Strong Exports — Clear Structural Upgrade

China’s domestic market saw 990,000 EV sales in May — down 9% YoY — and 3.9 million units for the first five months, down 15% YoY. Battery demand, however, proved more resilient: driven by the new NEV purchase subsidy policy launched earlier this year, consumers are increasingly opting for models with larger battery packs, pushing average battery pack capacity upward.

In stark contrast, exports exploded: China exported nearly 450,000 new energy vehicles in May — another monthly record. Both battery-electric and plug-in hybrid segments grew strongly, led by BYD, followed closely by Chery and Geely; Tesla’s Shanghai Gigafactory remains a critical export hub.

“The widening gap between China’s soft domestic market and its surging exports — what we call the ‘scissors effect’ — has become the most defining structural feature of the global EV industry in 2026,” said Charles Lester, Data Manager at Benchmark.