In the first two months of 2026, global deliveries of battery electric and plug-in hybrid vehicles outside China totaled approximately 1.132 million units, marking an 18.4% year-over-year increase. This growth was driven primarily by sustained expansion in Europe and high-speed gains in Asian markets excluding China, while North America saw a double-digit decline.
Since 2017, the non-China global electric vehicle market has achieved a compound annual growth rate of 32.9%. Although regions such as North America are undergoing policy adjustments and demand realignments, the overall market continues on its long-term electrification trajectory.
Among automotive groups, Volkswagen led with 173,000 EV deliveries—a 9.5% increase from the same period in 2025. Models based on the MEB platform, including the ENYAQ and ELROQ, were key contributors, supported by a diversified brand portfolio spanning Volkswagen, Audi, Škoda and Porsche. Volkswagen’s strategy of unifying mass-market and premium brands on a common electrification platform has bolstered its competitiveness outside China.
BYD secured second place by rapidly expanding in non-Chinese markets, recording growth rates of 80.5% in Asia (excluding China) and 104.1% in Europe. The company’s success has been attributed to the development of local distribution networks, competitive pricing strategies, and the establishment of overseas assembly and production hubs. As brand awareness rises in Southeast Asia and Europe, BYD is reducing its dependence on domestic sales and strengthening its long-term growth foundation.
Tesla ranked third with 113,000 deliveries, a 1.1% decrease year-over-year. Declines of 13.1% in North America and 6.6% in Europe outweighed gains in Asia and other regions. Contributing factors included an aging model lineup, intensified competition, and policy uncertainties. Tesla has phased out older models to focus on the Model Y and advanced software-centric features, positioning the company to adapt to regional market shifts.
Regionally, Europe’s EV market remains on a stable expansion path underpinned by emissions standards and carbon regulations, bolstered by the rollout of new models and an increasing share of affordable small and mid-size vehicles. North America is experiencing a sharper adjustment phase following the early expiration of federal incentives and a broader OEM focus on hybrids and extended-range electric vehicles. In emerging markets across Asia and South America, policy support is shifting toward local production, parts procurement and supply chain integration rather than direct subsidies.
As the regulatory environment evolves in 2026, a region’s ability to adapt policy frameworks and restructure supply chains is emerging as a key determinant of its EV market performance.
Source: SNE Research
