The Honda Prelude continues to kick the Subaru BRZ’s butt as the former sold 318 hybrid coupes in May. That outpaced their more traditional rival, which only moved 255 units.

Thankfully, it wasn’t all bad news for sporty Subies as WRX sales soared 147.9% to 1,195 units. The company didn’t bother mentioning the low-volume sedan in their sales release, but the increase is hardly surprising given the fact that they slashed prices and brought back the entry-level variant.

More: WRX Sales Fell Off A Cliff, So Subaru Brings Back The Cheap One

Thanks to the changes, the 2026 WRX begins at $32,495 and that’s $5,255 less than last year’s model. Subaru also lowered the price of the WRX Premium by $3,755, while the WRX Limited was slashed by $3,685. Even the WRX GT and WRX tS got a $2,710 reduction.

Putting the fun stuff aside, overall Subaru sales were up 10.4% last month to 57,748 units. This was largely due to strong demand for the Crosstrek and Forester.

Subaru noted the Crosstrek achieved its best May ever, while hybrid sales hit a new monthly record. The Japanese automaker also posted its best-ever EV monthly sales of 3,094 units.

While the Solterra dropped 39.8%, the decline in sales was more than offset by the new Trailseeker and Uncharted. It’s worth noting the latter EV even outsold the aforementioned WRX.

As for the rest of the lineup, it wasn’t pretty and we’re not talking about the Outback. Sales of the aging Ascent continued their descent, while the Impreza plunged 35.8%. The zombie Legacy found 90 takers, but sales should fade quickly as a quick search suggests less than 100 new units remain in inventory.

Subaru May US Sales

The national average price of a gallon of regular gasoline is $4.29 and that’s up nearly $1.15 from a year ago. However, some states like California are paying over $6 per gallon.

Given the sky-high prices, it’s no surprise that customers are embracing hybrids and even showing renewed interest in EVs. That’s certainly the case over at Hyundai, where hybrid sales soared 90% compared to last year. Sonata Hybrid sales were up 250%, while the Santa Fe (30%), Elantra (29%), and Tucson (10%) hybrids also experienced gains.

More: Hyundai’s Best-Seller Gets Cheaper Hybrids And A New Blackout Model

Electric vehicles also bounced back following the elimination of the federal tax credit last year. In fact, the Ioniq 5 celebrated its best May ever as sales jumped 28% to 5,002 units. The model is now up 16% year-to-date as customers have snapped up 18,395 electric hatchbacks.

The Ioniq 9 is also doing okay as customers bought 1,145 last month. That’s not great, but it’s still a 279% increase from this time last year.

Overall, Hyundai sales were up 3% to 87,468 units. This was largely due to the Tucson, which found 20,581 buyers in May. The crossover was followed by the affordable Elantra, which was up 7% to 16,819 units. The Palisade is also proving popular as consumers snapped up 13,089 of them.

As for the losers, they’re not much of a surprise as Ioniq 6 sales fell 85% to 176 units. Of course, that’s hardly shocking as the company dropped the mainstream model and the high-performance N variant isn’t on sale in America yet.

The Santa Cruz plunged 41%, while the Venue fell 27%. The latter feels like a relic from a bygone era, while the unibody truck is expected to be living on borrowed time.

Hyundai May 2026 US Sales

Data from Edmunds suggests the shift from gas to electric is gaining momentum at the dealership level. In January of this year, 67.1% of new EV purchasers at dealerships traded in a gas car. In April of this year, that figure had jumped to 72.1%. And it’s not just a first-time fad. Repeat EV purchase data also show an increase.

Numbers for January 2026 show that 26.2% of buyers traded in an old EV for a brand-new one. That figure leaped to 35.4% in April. Worth noting: this uptick comes despite the removal of the federal $7,500 EV tax credit and several state-level incentives. So, is this a definitive trend, then?

Read: America’s Used EV Market Is Heating Up For One Simple Reason

Speaking to CNBC, Ivan Drury, Senior Director of Insights at Edmunds, says it’s too early to draw a concrete conclusion, or to say whether it’s just the effect of the Middle East War and its resulting runaway fuel prices. “Oil and gas prices started rising after the U.S. and Israel attacked Iran on Feb. 28. About three more months of high gas prices and elevated EV trade-in numbers will give a better indication of whether customers feel pinched enough at the pump to consider a switch…” says Drury.

Car Prices Are Rising, But Especially EVs

With auto prices rising across the board, whether you buy a brand-new car or a used one, the chances are you’ll be paying more for it now than you would have six months ago, and much more than in 2020.

According to Cox Automotive, their Manheim Used Vehicle Value Index is approximately 4% higher than at the same time last year. And they’ve seen EVs leading the charge, with price increases notably higher than regular gas-powered vehicles.

“Additionally, we continue to see EV prices rising faster and holding higher than non-EVs. Three-year-old EV prices have outpaced non-EVs for six weeks in a row and are 11% higher than they were at the start of the year. The longer gas prices remain elevated, the more we expect consumers to turn to fuel-efficient vehicles.

“As EV lease maturities continue to increase throughout the summer, it will be critical to follow EV price trends—especially if the Middle East conflict remains unresolved.” says Jeremy Robb, Chief Economist at Cox Automotive. So, it seems that buyers are willing to pay more upfront if it means lower running costs, which EVs have offered for quite some time now.

Unsurprisingly, ICE SUVs Have Appreciated Least

It’s no surprise to see that out of all the categories analyzed by Cox Automotive, used gas-powered SUVs and CUVs have appreciated by just 0.3% on average since last year. Given their gas-guzzling tendency and resultant tugging at pocket strings, it’s to be expected.

Equally unsurprising is the fact that compact cars, a relatively fuel-efficient segment in the internal combustion engine class, saw the second-highest increase, at 7.6%. As Drury would likely agree, the data points in an interesting direction — but it’s still too early to call it a structural shift rather than a gas-price reaction.

By Rebecka Pieder/Medill News Service

WASHINGTON – In a deal that could provide a major trade boost for American farmers, the White House said that during the recent summit, China committed to buying at least $17 billion in additional U.S. agricultural products annually for three years. 

But Beijing has not confirmed the figure and farm groups expressed skepticism that the deal would materialize.

“I think we are cautiously optimistic when it comes to these things because we’ve been on both sides of this equation. You know, the first time we went through the tariff crisis, we lost 20% market share,” said Todd Main, director of market development at the Illinois Soybean Association.

President Donald Trump visited Beijing in May for talks. Two days after the U.S. delegation returned, the White House shared a list of achievements reached between the two countries. 

This included a commitment that China would increase U.S. beef imports and buy at least $17 billion per year in additional U.S. agricultural products over the next three years. In a statement to Medill News Service on May 20, the Chinese Embassy in Washington did not confirm the $17 billion or the time frame. However, it discussed progress on the trade of beef and other agricultural products. 

Tariffs hit hard

American farmers have been caught in a cost pinch for years. Grain prices are down, and the costs of machinery and fertilizer are up, making it harder for farmers to break even. 

Last year, these pressures were exacerbated as the Trump administration placed high tariffs on Chinese imports, sparking Beijing to retaliate by halting imports of U.S. agricultural products. 

China is the world’s largest importer of agricultural products. This hit Midwestern farmers particularly hard. Iowa and Illinois produce the most soybeans in the United States, and China is their largest market by far.

If Beijing were to follow through on the commitments announced by the White House, it would increase total U.S. farm exports to China to $28 billion to $30 billion a year, according to Reuters. While this would be below the $38 billion exported in 2022, it would be higher than the $24 billion in 2024 and much higher than last year’s $8 billion. 

A return to predictable trade relations between the U.S. and China would benefit farmers, said Chris Chinn, Director of the Missouri Department of Agriculture.

“This announcement is a great first step in what we hope is a full commitment to purchasing American products,” he said.

Jerry Costello II, director of the Illinois Department of Agriculture, echoed this sentiment while expressing doubts at the likelihood of the deal panning out.

“If China truly committed to purchasing an additional $17 billion in U.S. agricultural products for three years and followed through on the purchases, it would provide meaningful support for Illinois farmers,” he said. “Unfortunately, it’s not that simple.”

When asked to confirm the $17 billion number, a spokesperson for the Chinese embassy notably omitted any mention of the figure or the time frame. 

“It is hoped that both sides will create favorable conditions for two-way agricultural trade by jointly reducing tariffs, removing non-tariff barriers, and expanding market access, so as to promote the recovery and continuous expansion of cooperation in agricultural trade,” the spokesperson said. 

China also resumed registration of U.S. beef suppliers after the summit, according to the spokesperson.

Soybean imports cut off

After the Trump administration imposed sprawling tariffs on China last year, China halted imports of U.S. soybeans for several months. In November, the U.S and China reached a trade agreement in which China committed to purchasing 12 million metric tons of soybeans by the end of February. The order represented a sharp decrease from 2024 levels.

“The ag industry has heard big promises before, but the actual trade commitments have often failed to materialize,” Costello said. “During previous trade agreements, China fell well short of its pledged purchases, leaving farmers to suffer the economic impact.”

Lance Muirhead, a seventh generation farmer in Macon County, Illinois, has felt the costs of the trade war first hand. As a direct result of ongoing trade disputes, he has had to tighten the budget on the farm he operates together with his family, he said.

“It has put a halt on us buying any new equipment we might have been in the market for,” Muirhead said. “I run a 16-year-old combine that I’d like to upgrade to a slightly newer model, but that’s just not in the budget the way commodity prices have been.”

He is “skeptically optimistic” about the new proposed trade agreement. While a tweet or a promise can have positive effects on the market, that hype is short-lived unless commitments are followed through with concrete purchases the way they were last fall, he said.

“I think the proof will be in the pudding and only time will tell, but I sure hope the agreement is executed,” he said. “When China has that big of a basket, it’s hard not to want to put all of your eggs, or soybeans, into it.”

‘Just fluff’?

Senator Adam Schiff, D-Calif., also expressed skepticism.

“There’s a long history of the president coming back and misrepresenting what he’s achieved. My first question is, are any of these commitments real or are they just fluff?” Schiff, a member of the Senate Agriculture Committee, told Medill News Service.

When China halted imports last year, it was a massive blow to U.S. soybean exports, said Main, of the Illinois Soybean Association. It’s a market that has been built up over the last 30 years, and establishing new markets takes time. 

Even if the deal were to pan out, soybean farmers still should diversify their buyers so they are no longer so reliant on China, he said.

“If you look out a decade or so, we know that long-term China is not going to be the dominant buyer that it once was,” Main said. “And so we have to pivot.” 

Medill News Service articles are reported and written by graduate student journalists in the Washington program of the Medill School at Northwestern University.

Canada may not be the first country you’d back to lead an electrified car revolution, but it seems that the tides are changing, with buyers snapping up 21,574 new ZEVs (Zero Emission Vehicles) in March 2026 alone, according to a Statistics Canada report. That’s a 74.7% increase over March 2025 figures.

ZEVs cover any vehicle that can produce zero tailpipe emissions, which includes PHEVs or Plug-in Hybrid Electric Vehicles, which can achieve this when operating in purely electric vehicle mode. In fact, new ZEVs accounted for 12.2% of all new vehicles sold in March 2026, compared to 6.6% the same month last year.

Read: Canada’s China Deal Promised Affordable EVs, But $100,000 SUVs Are First Off The Boat

Huw Williams, Canadian Automotive Dealers Association spokesperson, believes that this uptick in electrified demand is a sign of things to come. “We can see it on the ground (at dealerships) the surge in gas prices and the return of federal (EV) incentives is working to drive the sales. One of the other fundamentals working to drive sales is consumers see their neighbors with EV’s, they’re trusting them more each day,” he told CTV News.

This drive is also backed by the federal government, which introduced a new five-year EV incentives program. Rolled out in February 2026, the program offers rebates of up to $5,000 and covers hybrid vehicles, too.

Toyota & Honda Thrive, Chinese EVs Are Coming

Brendan Sweeney, President of the Pacific Manufacturing Association of Canada, points out that electrification is already being accepted at a great pace in Canada. “The majority of Honda and Toyota’s vehicles that are made in Canada are electrified; they reduce tailpipe emissions by 25 percent to 30 percent, and we know those are in high demand, so is there a future for electrified vehicles in Canada,” he said.

Plus, Canada is now preparing to welcome up to 49,000 Chinese EVs per year, rising to as high as 70,000 per year by 2030. Williams says, “We’re also hearing about interesting joint venture projects with Chinese companies coming to North America, we’re also hearing about exciting hybrids in the pipeline and a variety of consumer choice that’s going to be coming from all over the world.”

Charging Stations Need To Be More Prevalent

Of course, Canada’s road to electrification isn’t as smooth as you’d hope just yet. One major stumbling block is the proliferation of charging stations. While there’s a pretty decent number out there, they’ll need to become even more prevalent as more EVs take to the roads.

In short, you’ll need to have more EV charging bays in closer proximity to each other, given that cold weather can cause notable range reduction. Williams highlights this, saying, “We have to focus on reducing the charging anxiety, that means charging stations that work, charging stations that are reliable, and charging stations that are in the places that consumers need them most.”

The global plug-in market keeps tilting in odd directions. Demand for battery-electric and plug-in hybrid cars is up worldwide, almost entirely on the back of Europe, while the two markets that used to lead the charge are losing altitude.

According to data released by Benchmark Mineral Intelligence (BMI), roughly 1.6 million EVs and PHEVs were sold globally in April. That works out to a 6 percent year-over-year gain, though it represents a 9 percent step down from March, when subsidy expirations and climbing fuel prices pulled buyers forward. Europe is doing most of the lifting.

Read: Global EV Sales Just Fell 11%, But Carmakers Found A Surprising Backup Plan

European plug-in sales slipped 24 percent from March but jumped 27 percent against April last year, with just over 400,000 units moved. Italy nearly doubled its volume, while France climbed 36 percent, and Germany rose 33 percent. The war in Iran has fed into the trend as well, with EV and PHEV sales running up 19 percent year-on-year in January and February before the conflict, then accelerating to 30 percent growth across March and April.

A growing number of vehicles from Chinese brands across the region have also contributed to strong demand. This year, 22 percent of all plug-in cars sold in Europe were produced in China, despite being subjected to tariffs.

North America Falls

Things are very different in North America. Total EV and PHEV sales have slipped 25 percent year-to-date, while in Mexico they’re down 50 percent. In total, an estimated 120,000 EVs and PHEVs were sold in North America in April, down 28 percent from last year. Through the first four months of 2026, total sales sat at roughly 450,000 units. The introduction of the Electric Vehicle Affordability Program in Canada may help to boost sales throughout the rest of this year.

Global EV And PHEV Sales

Sales have also dropped in China. Year-to-date, they’re down 17 percent to around 2.8 million, with the decline largely concentrated in the smaller vehicle segments due to subsidy adjustments introduced earlier this year. In total, roughly 850,000 EV and PHEV models were sold in China in April, down 8 percent from last year.

Chinese automakers have made up for the domestic shortfall by shipping abroad. Between January and April, 1.4 million EVs and PHEVs left the country for export markets, more than double the same period in 2025. The cars are still being built. They are just increasingly being driven somewhere else.

Toyota released its financial results for the previous fiscal year, revealing a bittersweet reality: while consumers are buying their cars in record numbers, global but trade wars and geopolitical chaos are taking a serious bite out of the bottom line.

For fiscal year 2026, which ran from April 1 through March 31, Toyota Motor Corporation booked record revenue of 50.68 trillion yen ($323.42 billion), up 5.5 percent year over year. Operating income, however, dropped by roughly 1 trillion yen ($6.4 billion) to 3.77 trillion yen ($24 billion).

More: Toyota’s Next Corolla Cross Is Growing Up, And The RAV4 Should Be Worried

The single biggest culprit was a 1.38 trillion yen ($8.8 billion) hit from US tariffs. That alone was enough to drag Toyota’s North American division into a rare operating loss of 298.6 billion yen ($1.9 billion) excluding swaps, even though regional vehicle sales actually grew 8.5 percent. Selling more cars and losing money doing it is not the equation Toyota wants to be solving.

To combat these trade frictions, Toyota will begin exporting US-built models to Japan starting this year, including the Camry sedan, the Highlander SUV, and the Tundra pickup. This move is less about covering local demand and more of a strategic effort to balance trade relations with the US.

More: A Texas-Built Full-Size Pickup Is Now On Sale In The Country That Invented The Kei Car

The 2026 results were quite positive for global sales of electrified vehicles, which reached 5.04 million units, making up 48.1% of total volume (11,283 million). These include 4.62 million HEVs, 175,000 PHEVs, and 243,000 BEVs, with the latter surging by 68.4% compared to last year. For FY2027, Toyota expects to more than double its BEV sales to 598,000 units.

What’s Next For Toyota?

The overall forecast for FY2027 is rather cautious. Toyota expects sales volume to hold roughly steady, but operating income is forecast to fall 20.3 percent to around 3 trillion yen ($19.1 billion). The company is bracing for an additional 670 billion yen ($4.27 billion) in costs tied to economic and logistical disruptions over the coming year.3

More: The Toyota Van That Refused To Change For 22 Years Is Being Replaced, And It’ll Look Nothing Like Before

Toyota specifically called out the “destabilization” of the Middle East and the ongoing war there, which are pushing materials and energy costs higher. Combined with ongoing tariff pressures and a massive 1.8 trillion yen ($11.48 billion) investment in R&D, Toyota is signaling to investors that the next 12 months will be a period of defensive maneuvering.

Shareholders aren’t being left empty-handed. Toyota declared a full-year FY2026 dividend of 95 yen ($0.61) per share and plans to bump it to 100 yen ($0.64) for FY2027. Toyota stock currently trades at 2,913 yen ($18.58), down 14 percent since the start of the year.

More: Toyota’s Most Powerful Land Cruiser Ever Is A $112K Hybrid Americans Can’t Buy

Toyota’s newly appointed President, Kenta Kon, said: “I feel there is still significant room for improvement in our management and administrative operations. Those of us in such positions, by further examining where our abilities truly lie, can move beyond simply managing the front lines and instead get directly involved to support operations.”

Below you can watch the entire presentation that was streamed earlier today from Japan.

Worried that automakers like Tesla could vacuum up the bulk of its low-tariff Chinese EV quota in one gulp, the Canadian government is reportedly rethinking how to dole out the import permits before they all end up in one company’s hands.

Under Canada’s new trade arrangement with China, up to 49,000 China-built EVs can be imported each year at a slashed 6.1 percent tariff, a steep drop from the punishing 100 percent duty. The first batch of 24,500 permits has been on the table since late March and is supposed to stay available through August 31, handed out on a first-come, first-served basis.

Read: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

According to Bloomberg, not a single permit has actually been issued yet. That window is about to get crowded, though, because Tesla just confirmed it will start selling a Chinese-built Model 3 in Canada at a sharply lower price. The new entry point is CA$39,490 before destination, roughly US$29,007, which guts the old floor set by the Model 3 Long Range AWD at CA$79,990, or about US$58,700.

Canada Wants Equitable Access For All Chinese Brands

In addition to Tesla, through its Volvo and Polestar brands already operating in Canada, may also be positioned to secure part of the initial allocation. Once the second half of the 49,000 permits becomes available after August 31, officials may revise the system and assign specific reduced-tariff allocations to individual automakers, giving more brands access to the program.

These brands could include newcomers to the Canadian market, such as BYD and Chery. According to unnamed officials, the quota system may eventually expand to favor companies that establish operations in Canada, including local assembly facilities.

News of these potential changes comes just after it was revealed firms including BYD, Cheyr, and the Geely-owned Zeekr brand have launched a hiring spree across Canada, eager to quickly set up shop and start selling their vehicles locally.

Data from Australia’s Federal Chamber of Automotive Industries and the Electric Vehicle Council reveal that, of the 92,591 new cars, SUVs, pickups, vans, and trucks sold in April 2026 (up 2.2% over the same month in 2025), 16.4% were battery-electric. This works out to 15,185 vehicles. In contrast, April 2025 saw just 6,010 new EV sales.

See Also: For The First Time, Electrified Car Sales Surpassed Gas Vehicles In Australia

It’s not just EVs that saw strong numbers; hybrids were also in demand. In fact, 18,162 new hybrids found homes in April 2026, bolstered by the first full month of sales of the Toyota RAV4, which bagged best-selling car in Australia. Plug-in hybrids also saw 9,628 new units shifted in April 2026.

Petrol And Diesel Vehicle Sales Dwindle

While EVs, hybrids, and plug-in hybrids were enjoying the limelight, partly driven by tax incentives, traditional gasoline and diesel-powered vehicles took a hit in April 2026. Sales of new gasoline-powered vehicles saw a decline of 30.1% in comparison with April 2025 figures.

Diesel-powered new vehicle sales were down by 21.7%. These declines could also be attributed to the ongoing war in the Middle East, which has significantly affected crude oil deliveries to Australia. This has resulted in rising prices at the pump, as well as some scattered shortages.

For April 2026, BYD’s Sealion 7 SUV dominated the EV rankings, with 1,780 units sold. Meanwhile, the Tesla Model Y sold nearly 1,000 fewer units, although it was up 193.6% year-on-year, as last year’s model was due for replacement.

The BYD brand as a whole shifted 7,702 new units. Other strong sellers in the Chinese EV space include the Geely EX5 with 1,202 deliveries, and 1,006 units from Chinese brand Zeekr, of which 973 were its 7X SUV. Shifting our attention to the car segment, Tesla’s Model 3 narrowly beat BYD’s Seal, with 403 versus 370 deliveries.

Toyota Still Leads, Ford And Mazda Drop From Podium

Despite a 21.6% reduction in year-on-year sales, Toyota remained top dog in Australian new vehicle sales through April 2026. They shifted 15,185 units, followed by BYD with a 7,702 new unit tally.

BYD’s rise to second place means that Ford and Mazda, the historical second and third-place finishers, are now fifth and sixth, with 5,748 and 5,636 units respectively. However, the Ford Ranger held on to the silver medal as the second best-selling vehicle, sandwiched between the RAV4 and Hilux.

When looking at Australian new car sales as a whole, the new third- and fourth-place occupants for April are Kia and Hyundai, with 6,450 and 6,002 units sold respectively. Of course, these two automakers also have EVs and hybrids in their portfolio. The same is true for Chery in eighth place and MG in ninth, while Isuzu rounded off the Top 10 ahead of Mitsubishi.

There’s a new electric vehicle king in the United Kingdom and it’s not one that you’d expect. Quite the opposite as BYD has taken the podium.

More: BYD Sold 700,000 Electrified Cars Last Quarter And Still Lost More Than Half Its Profit

Citing data from the Society of Motor Manufacturers and Traders (SMMT), BYD said they have sold 12,754 EVs through April and that gives them over 7% of the market share. This makes the Chinese firm the “UK’s largest electric vehicle brand” and places them ahead of rivals such as BMW, Tesla, and Volkswagen.

BYD went on to note they’ve also “become the best-selling EV brand among private buyers.” This is a notable achievement since the company’s vehicles don’t qualify for government subsidies. The electric vehicle grant provides discounts of up to £3,750 ($5,079) for certain vehicles including the Ford Puma Gen-E, Nissan Leaf, and Mini Countryman Electric.

The automaker credited its success to a diverse lineup of vehicles that includes everything from the £18,675 ($25,290) Dolphin Surf to the £47,025 ($63,682) Sealion 7. The latter features an 82.5 kWh battery pack that provides a WLTP combined range of 300 miles (483 km), although higher-end variants have more advanced powertrains.

BYD UK’s Bono Ge said, “With fuel prices remaining high, more drivers are turning to electric vehicles as a smarter and more economical choice. We are delighted to see the UK EV market grow by 22% year-on-year, and even more proud that BYD has become the UK’s leading EV brand in a little over three years.”

Year-to-date BYD sales are up 124% to 26,396 units, which puts the brand ahead of a number of European automakers including Citroen (12,142), Cupra (15,171), and Dacia (10,250). The brand is also beating Fiat (2,320), Land Rover (25,313), Mini (18,814), and Renault (23,645) – among others.

UK Sales April 2026

* Includes all types of powertrains. Source SMMT

The BMW Group has just built its two millionth fully electric car, and the speed of that climb is impressive. It took almost 11 years after the first i3 hatch rolled off the line in 2013 to reach the first million, then only about two more to double it.

The milestone car is a BMW i5 M60 xDrive, built in Germany and heading to a buyer in Spain. That destination says a lot, because Europe is leading the way when it comes to EV demand right now. Sales of fully electric cars in the region jumped 28 percent in 2025, and one in every five cars sold in the EU is now an EV.

Related: BMW’s China-Only EVs Solve A Problem Tesla Owners Keep Running Into

Production is ramping fast to accommodate that growth. BMW now builds EVs at all its German plants and mixes them with combustion cars on the same lines. That flexibility lets it react as demand shifts, and lately, demand has been shifting quite a bit, because Europe’s love for EVs isn’t mirrored in other regions.

Globally, BMW delivered 442,072 EVs in 2025, a modest increase that shows growth is still happening, just not at the same pace as before. Because in the United States, BMW’s EV momentum has clearly cooled. Battery electric sales fell to 42,484 units in 2025, down 16.7 percent year over year.

The drop was even sharper late in the year, with fourth quarter EV sales plunging 45.5 percent after federal EV tax credits were axed. At the same time, plug-in hybrids surged more than 30 percent, showing where buyers are heading. China isn’t helping either. Sales there dropped significantly, with the region down double digits overall, dragging on global performance.

Hot New Electric Metal Inbound

But on the plus side, BMW has just begun to roll out fresh EV product with cutting-edge design and technology. The iX3, the first of BMW’s Neue Klasse cars, is already in showrooms, and the i3 electric 3-Series that debuted this spring won’t be far behind. And it’ll be followed by the first-ever electric X5, while Rolls-Royce has its own electric SUV on the way, although the sales numbers will obviously be modest.

That lineup should help keep BMW Group’s EV registrations growing, but it might struggle to keep pace with another big German automaker. VW recently announced it had made its 2 millionth EV only 10 months after rolling out its millionth, and with the ID.3 now much improved and the ID. Polo arriving at dealers soon, its next million could come even quicker.

BMW

BYD has recorded its steepest quarterly profit decline since 2020, underlining the mounting pressure facing the world’s largest electric vehicle seller in its home market despite success abroad. The company’s latest report showed that net profit in the first quarter of 2026 declined by 55.4 percent from the previous year, falling to 4.09 billion yuan, approximately $597 million.

Revenue dropped by nearly 12 percent to 150.2 billion yuan ($22 million), the third consecutive quarterly decline and the lowest quarterly revenue figure since Q2 2024. However, the result still bested analysts’ prediction that revenue would be around 132-140 billion yuan. BYD sold 700,463 “New Energy Vehicle” (EVs and PHEVS) units in the quarter, down 30% year-on-year and nearly 48% below the record volumes of Q4 2025.

Read: China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

The Chinese market for electric cars is fiercely competitive. BYD has taken over as the market leader because of its low-priced models, yet price wars in its home market are intense. Meanwhile, the government has scaled back subsidies. China exempted NEVs from purchase tax entirely in 2024–2025, but for 2026 and 2027, the relief has been halved to a maximum of 15,000 yuan per vehicle.

This policy shift pulled demand forward into Q4 2025, exacerbating the Q1 2026 slowdown. Sales in China have declined for several consecutive months, and profits are being squeezed even as exports grow strongly.

Global Push Becomes Critical As Domestic Sales Cool

BYD is looking to the overseas market as domestic sales decline. It plans to ship more than 1.5 million automobiles this year in an attempt to overcome sluggish domestic sales. Industry insiders expect massive export growth next year, but overall delivery growth will probably be less aggressive.

This strategic shift was on display at the Beijing Auto Show, where BYD launched new products targeting the premium segment, including the Datang (Great Tang), a full-size electric SUV priced from 250,000 yuan, which attracted more than 30,000 pre-orders on its first day. Moving beyond low-end models is intended to help the company sustain profitability amid the mass-market price war.

There’s a renewed focus on regaining technological superiority, too. The company is enhancing charging speed, among other features, to attract consumers who are not keen on switching from gas-powered cars.

But BYD is at a crossroads as it stands. Its expansion across borders may be the answer to whether it can bounce back. Analysts say the next few quarters will be critical, with domestic EV demand recovery and robust export growth seen as the keys to a profit rebound.

For years, California has set the pace for EV adoption in America, the bellwether other states watched. Now the bellwether is wobbling. Recent sales data reveal a significant decline in the state’s EV registrations through the first quarter of the year, driven by a sharp drop in demand for new Tesla models.

So far this year, a total of 57,111 zero-emission vehicles (ZEV) have been sold across the Golden State. This represents a significant 40.2 percent decline from the 95,520 sold over the same period last year, and comes on the back of an overall drop in new car registrations of 8.9 percent, falling from 457,525 to 416,810.

Read: Rivian Beat Four Major Automakers In EV Sales, And Its Biggest Model Hasn’t Even Launched Yet

The decline in demand for ZEVs means they accounted for just 13.7 percent of the total market in Q1 2026. By comparison, they had a 16.6 percent share in Q1 2022, peaking at 22 percent in Q1 2024 before falling slightly to 21 percent in Q1 2025.

Things look particularly troubling for Tesla. First-quarter registrations fell 24.3 percent to 31,958, down from 42,211 a year earlier. In raw volume, no brand lost more. In percentage terms, Tesla actually weathered the storm better than most of its rivals. Despite its own losses, Tesla’s slice of the EV pie grew from 44.2 percent in Q1 2025 to 56 percent last quarter, less because Tesla improved than because everyone else collapsed around it.

Most Brands Suffer

The collapse around Tesla is brutal. Over at Acura, ZEV sales fell from 1,279 to just 11 units in Q1, down 99.1 percent. Audi managed 210 registrations against 2,319 a year earlier, down 90.9 percent. BMW fell 58.9 percent, from 5,301 to 2,180. Chevrolet dropped 59.6 percent to 1,875. Ford was off 58.8 percent at 2,374. Honda plunged 81.6 percent to 832. Dodge mustered 16 units, down 79.7 percent. Hyundai held up comparatively well, off 30.4 percent at 3,586.

Only a handful of brands moved the other way. Lexus posted the standout figure, climbing 192.1 percent to 1,405 units, while Toyota grew 37.8 percent to 2,599 and Lucid added 37.1 percent to reach 1,315. Cadillac edged up 17.1 percent to 1,771.

Several factors have fed into the decline. Affordability concerns remain prevalent across the state, as they are throughout the country, while financing costs remain high due to current interest rates. Additionally, tariffs have driven higher prices, and overall inflation has spiked, while the phase-out of the federal tax credit has done the rest. None of this is mysterious, it all adds up.

Top 25 Selling Hybrid, ZEV, and PHEV Models

California ZEV Sales 2026

The Chinese auto industry has spent the better part of two years waiting for the price war to burn itself out. It hasn’t, and car companies are showing no signs of relenting. Facing declining sales, BYD is instituting significant price cuts, as are key rivals Geely and Chery.

Almost a year has passed since Chinese authorities sat down with the heads of more than a dozen carmakers and pressed them to call off the price war before it became a race to the bottom. The country’s market regulator called for efforts to “comprehensively rectify ‘involutionary’ competition,” borrowing a phrase Premier Li Qiang has used for the industry’s increasingly self-defeating behaviour.

Read: Dozens Of Chinese EV Brands Could Collapse In The Next Year

It appears little has changed. Data from Bloomberg reveals the average price reduction across BYD models increased to 10 percent in March. Meanwhile, Geely and Chery are running discounts of around 15 percent, though those have held roughly steady through the past twelve months.

China Doesn’t Have Enough Car Buyers

Overcapacity within China’s automotive sector is at the root of the problem. Last year, approximately 23 million new vehicles were sold in the country, but its car factories have the capacity to produce 55.5 million vehicles a year. This has prompted many local brands to ramp up vehicle exports. Last month, EV exports from China more than doubled.

Now facing greater scrutiny from regulators, companies, including BYD, are being forced to pay suppliers much more quickly than in the past. Prior to local authorities getting involved, automakers had been delaying invoice fulfillment for months at a time, allowing them to offer deep discounts to spark sales. Now, invoices must be paid more promptly, increasing liabilities on carmakers’ balance sheets. For BYD, this has pushed its debt-to-equity ratio to 25 percent.

“It seems to be good for the customers, but it’s not — manufacturers are losing money,” the secretary general of the International Organization of Motor Vehicle Manufacturers, François Roudier, said. “It hurts the full system.”

Last year, BYD and Geely were the only two Chinese automakers to firmly establish themselves among the planet’s top 10 largest car manufacturers by volume. By 2030, fellow Chinese brand Changan aims to join them and grow its global sales by more than two-thirds.

Heading into the Beijing Auto Show, Changan Automobile says it is aiming for 5 million annual sales by 2030, with a fallback target of 4 million if conditions tighten. Reaching the higher figure would make it the world’s fifth-largest carmaker based on 2025 volumes, putting it ahead of Ford at 4.4 million, Honda at 3.5 million, and Nissan at 3.2 million. The plan leans heavily on electrification, with plug-in hybrids and battery-electric models expected to account for 60% of total sales.

Read: This Chinese SUV Is Like A Cut-Price Xiaomi YU7, Except For What’s Under The Hood

The key to Changan’s desired growth will be overseas markets. Last year, it sold 638,000 vehicles outside China, but by 2030, it aims to increase this figure to between 1.4 million and 1.8 million units. Among the brands currently operated by Changan include Nevo, Deepal, Volga, Avatr, and Kaicene, while it also has joint ventures with Mazda and Ford.

Chinese Rivals Could Also Climb The Charts

Of course, Changan isn’t the only Chinese carmaker that wants to see more sales in the coming years. Geely, which ended 2025 as the world’s eighth largest car manufacturer with 4.12 million vehicles, is targeting 6.5 million sales in 2030. Additionally, BYD will be pushing for more sales, although it hasn’t announced a set target for 2030, Reuters notes.

New technologies will play a part in Changan’s sales growth. The car manufacturer is gearing up to launch a pair of all-electric sedans using advanced sodium-ion batteries. As sodium-ion batteries are far cheaper to produce than existing lithium-ion batteries, these models could usher in a new era of even more ultra-affordable EVs in China. Most other major Chinese car companies are also developing sodium-ion batteries, including Geely and BYD.

Europe’s EV market is having a moment, and it’s in large part thanks to a man who’s no fan of clean energy. President Trump’s attack on Iran sent petrol and diesel prices soaring – and European drivers into the arms of electric cars.

New figures show battery-electric registrations surged 51 percent in March 2026 across 15 key EU + EFTA (European Free Trade Association) markets as drivers in the region battled with fuel costs that jumped by around a fifth.

Related: Ford’s EV Sales Collapsed 70% While Toyota’s Nearly Doubled

More than 224,000 electric passenger cars were registered in March alone as a result, accounting for 22 percent of all new-car sales. That means close to one in every four cars sold was an EV. Over the first quarter, more than half a million EVs were sold across the EU, up 33.5 percent year over year. 

Growth was broad, too. Germany rose 42 percent year to date, helped by new state incentives and France stayed strong with a 28 percent EV share in March. Italy, long considered a reluctant adopter, jumped 65 percent. Even Poland cracked the 40 percent growth club.

Scandis Embraced EVs

Then there’s the Nordics, where normal rules don’t apply. Denmark saw fully electric cars account for 76.6 percent of March registrations. Finland was near 50 percent. Norway, naturally, continued behaving like it’s already living in 2035, with 98.4 percent of new registrations fully electric.

Now let’s cross the Atlantic, where the mood is rather different, despite pump prices also rising there. Though CarEdge reported internet searches for EVs jumped 20 percent in the first week following the original attack on Iran in early March, US EV sales in the first quarter fell 27 percent compared with the same period last year.

Tax Credit Hole

Only 216,399 EVs were sold in America between January and the end of March, that slide heavily influenced by the removal of the federal $7,500 tax credit last September, which appears to have yanked plenty of buyers back toward gasoline pumps.

Some brands still found success. Toyota rose 79 percent, Lexus jumped 207 percent, and Rivian edged upward by 21 percent. But others were hammered, with several mainstream and premium names like Audi, BMW, Mercedes, Porsche, Ford, VW, Jeep and Genesis posting dramatic declines as high as 93 percent.

Porsche, Hyundai

Global car demand has proven uneven this year, with regional pressures shaping very different outcomes for major automakers. Like many other car manufacturers, the Volkswagen Group has had a difficult start to 2026. Company sales slipped 4 percent in the first quarter, and EVs fell even further, despite a generally positive outlook across Europe.

The world’s second-largest automaker ended the quarter having sold 2,048,900 vehicles, down 4 percent from the 2,133,600 it sold in Q1 2025. This drop was largely due to a 14.8 percent collapse in China, from 644,100 units to 548,700.

Read: A 96% Sales Collapse Is Why VW Just Killed US ID.4 Production

Similarly, sales were down 13.3 percent in North America from 237,200 units to 205,500. The drop was led by the United States, where sales fell 20.5 percent, blamed on the current tariff situation, “as well as changes in regulations.” Sales were also down 8 percent in Asia-Pacific to 70,200 and declined 5.3 percent in the Middle East and Africa to 92,800.

VW Q1 2026 Sales

Bucking the trend was a 4.2 percent increase in sales in Western Europe, rising from 814,000 to 848,500. Sales in Central and Eastern Europe also climbed 7.6 percent to 135,300, while sales in South America increased 7 percent to 147,900.

“The first quarter of 2026 was once again characterized by very challenging economic and geopolitical conditions. The worldwide automotive market declined overall through the end of March,” VW’s Marco Schubert said of the results.

Just three brands from the VW Group reported sales rises in the first quarter. The first was Skoda, whose sales rose 14 percent to 271,900, up from 238,600 in the first quarter of 2025. Additionally, Volkswagen Commercial Vehicles sales rose 10.1 percent to 88,900, while MAN truck sales climbed 14.5 percent to 23,600.

VW Brand Sales

It was inevitable that sales of new EVs would slide in the US after the Trump administration axed the long-standing $7,500 federal tax credit at the end of September. New data shows that sales fell off a cliff in the final quarter of last year, but they’ve since started to somewhat stabilize, indicating we may have hit a new normal.

During the first three months of this year, 216,399 new EVs are estimated to have been sold nationwide. This is down 27 percent from the first quarter of 2025 and is also down 7.8 percent from Q4 2025.

Read: EV Prices Are Falling, But Automakers Are Eating Nearly $8,000 Per Sale To Pull It Off

While this decline is noteworthy, it was as significant as the drop-off seen in Q4 last year, when sales plunged 36 percent year-over-year and 46 percent from the previous quarter, which was the last quarter before the tax credit was axed.

“The U.S. EV market has clearly entered a new phase,” director of insights at Cox Automotive, Stephanie Valdez Streaty noted. “With federal incentives gone, the first quarter reflected a necessary reset – sales slowed and market share shifted. What comes next will be driven less by policy and more by fundamentals: more affordable products, smarter pricing strategies, and continued investment in infrastructure. Those longer-term fundamentals continue to support EV growth. The timeline has shifted, but the direction hasn’t.” 

The Losers And The Winners

Most brands saw their EV sales slip significantly last quarter compared to the same period in 2025. For example, Audi’s EV sales were down 89.6 percent, BMW’s by 63.3 percent, Dodge’s by 87.7 percent, Genesis’ by 89 percent, and Honda’s were down 65.3 percent. However, there were a few exceptions to this general trend.

For example, Lexus EVs rose 206.7 percent to 4,456 units, Rivian by 21.2 percent to 10,365, Cadillac’s by 19.8 percent, Lucid’s by 3.5 percent, and Toyota’s EV sales climbed 79 percent to 10,042, thanks to strong demand for the updated BZ.

USA EV Sales

ORLANDO, Fla.,- International Motors, LLC* (“International”) announced the International and IC Bus Dealer of the Year award winners at its annual dealer meeting this week in Orlando. This event is an opportunity for International to celebrate the successes of the dealer network from the previous year. More importantly, it is a moment to align our strategy to ensure we deliver quality solutions for our customers every day.

The 2025 Dealer of the Year award winners were selected based on their performance in several criteria, such as vehicle sales, parts sales, International S13 Integrated Powertrain sales, and service dwell time. Growth in key areas like market share, customer experience survey results, and leveraging solutions through International Financial are additional data points used to make Dealer of the Year selections.

“The annual International dealer meeting is always an exciting event because it brings our network together,” said Dan Kayser, executive vice president, Commercial Operations, International. “Our truck and bus dealers are our closest partners, and they work hard every day to give customers a dependable, consistent experience. This event celebrates that partnership and the strength we have when we’re aligned as one International.”

2025 International U.S. and Canada Dealer of the Year: Wieland Truck and Trailer

Michigan-based Wieland Truck and Trailer had an impressive year, exceeding their targets across the board — from parts growth and truck sales to significant gains in customer experience and market share. They achieved nearly seven times their goal for conquest customer count.

“Customers count on dealers who act as true partners, and Wieland Truck and Trailer delivered above and beyond that promise,” said Justina Morosin, senior vice president, Sales and Field Operations, International. “Their accomplishments are a direct result of their focus and customer first approach, and we’re proud of the consistency and care their team brings to every interaction.”

“Being named Dealer of the Year is an incredible honor, and I’m proud of what our team accomplished this past year,” said Rob Cleary, dealer principal, Wieland Truck and Trailer. “Customers expect a partner who can support them across their entire operation, and our team takes that responsibility seriously. I’m looking forward to celebrating with them at the dealership and seeing what we achieve in the year ahead.”

Wieland Truck and Trailer, founded in the 1930s, has three locations in Michigan.

2025 International Latin America Dealer of the Year: Capasa

Capasa was selected as the Dealer of the Year winner because of their commitment to achieving a unique customer experience through comprehensive solutions and support.

“Capasa puts customers at the center of what they do,” said Rafael Alvarenga, vice president, Latin America Commercial Operations, International. “Their commitment to providing effective solutions and strong support makes a meaningful impact across Latin America and sets a strong example for our entire dealer network.”

“It’s an honor to be named Dealer of the Year. We take great pride in offering transportation solutions that support our customers at every stage of their operations,” said Luis Gerardo Amarante Alvarado, dealer principal, Capasa. “This award is a celebration of our team’s effort and commitment, and I look forward to what we’ll accomplish in the year ahead.”

Capasa was founded in 1962 to meet the needs of the state of Sinaloa, Mexico. They have a presence in the cities of Culiacán, Los Mochis, Mazatlán and Guamúchil and in the state of Baja California Sur in the cities of Los Cabos and La Paz.

2025 IC Bus Dealer of the Year: Midwest Transit Equipment

Midwest Transit Equipment’s strong commitment to excellence, commercial execution and customer support made them a perfect fit for IC Bus Dealer of the Year. They exceeded their target in orders, advanced battery-electric vehicle readiness and adoption, and completed training with extensive customer-facing engagement.

“Our dealers play an essential role in providing safe, dependable transportation for students,” said Charles Chilton, vice president and general manager, IC Bus. “Midwest Transit Equipment embodies what it means to be part of IC Bus through their teamwork, customer focus and dedication to building a stronger future for our industry. We’re proud of their team for the example they set for our network.”

“Celebrating our 50th year and being named IC Bus Dealer of the Year is an incredible honor for us,” said John McKinney, chairman, Midwest Transit Equipment. “Our team is committed to trust, collaboration and setting a high standard for the customers and communities we serve. I’m grateful for their effort and excited to celebrate this achievement together.”

Midwest Transit Equipment is the largest volume school bus dealership in the United States. They have nine locations and a team of 300 employees.

To find your nearest International or IC Bus dealer in the U.S. and Canada visit the dealer locators on International.com or ICBus.com. For distributors in Mexico and Latin America, search Mexico.International.com and Latin-America.InternationalCamiones.com.

About International:
Based in Lisle, Illinois, International Motors, LLC* creates solutions that deliver greater uptime and productivity to our customers throughout the full operation of our commercial vehicles. We build International trucks and engines and IC Bus school and commercial buses that are as tough and as smart as the people who drive them. We also develop Fleetrite aftermarket parts. In everything we do, our vision is to accelerate the impact of sustainable mobility to create the cleaner, safer world we all deserve. As of 2021, we joined Scania, MAN and Volkswagen Truck & Bus in TRATON GROUP, a global champion of the truck and transport services industry. To learn more, visit www.International.com.

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