An 'EV Winter' Is Coming As Automakers Around The World Brace For Buyers To Pass On EVs
It's not going to be an easy year for electric vehicle sales around the globe. Between a near-complete reversal of policy in the U.S., a wind-down of some subsidies in China and Europe saying "never mind" to its 2035 internal combustion engine ban, things are about to get very rocky. Because of all that, Bloomberg expects 24.3 million passenger EVs to be sold in 2026 — just a 12% increase from 2025. While that doesn't sound terrible on its face, you gotta remember that 2025 saw 23% growth from the year before.
In the U.S., especially, things are bleak. Apparently, we're headed toward what is being described as an "EV winter" by one consultant who spoke with Bloomberg. However, there is some light at the end of the tunnel. We may be in for some sort of revival in 2027 and 2028, according to Nathan Niese, Boston Consulting Group's global lead for EVs and energy storage. Still, 2026 is more likely than not going to be brutal, and automakers are going to have to bear down to weather the storm.
This really kicked off when the Trump administration decided to kill off the wildly popular $7,500 electric vehicle tax credit at the end of September. Trump then went about neutering fuel economy standards, and now we're here. Year over year, November's EV sales dropped 41%, and it's just an appetizer of things to come. Bloomberg expects the U.S.'s annual passenger EV sales to drop 15% in 2026.
Not much better abroad
It's not like the United States is alone in this mess, either. Analysts say that even China — the world's top EV market — is going to see a sales slowdown in 2026, and it's partly because of a pullback in government support for the exploding industry. Beijing has apparently cut its EV tax break in half for 2026, according to Bloomberg. At the same time, a cash-for-clunkers program (remember that?) will include new restrictions and limited eligibility for folks who want to swap out their old ride for an EV. Most feel that it's a way to throw water on the price war that has been raging between China's biggest automakers that has led to some posting their weakest annual growth numbers in years.
All in all, China's passenger EV sales, including PHEVs and extended-range hybrids, are expected to have hit about 15.6 million in 2025. That represents a 27% increase over 2024, Bloomberg reports. Nobody expects that to continue in 2026, with growth forecasted at just 13%.
On top of all of this, as we've reported before, the European Union has given up on its 2035 internal combustion engine ban as EV sales continue to slow in the bloc. The European Commission says it plans to maintain a strong market signal in favor of zero-emission vehicles while giving automakers more flexibility, but we know what this is really about. EV sales are slowing on the continent, and automakers are getting spooked.
If you want to learn more about this entire situation and how it's impacting different markets globally, I do suggest you head over to Bloomberg for the full rundown.
As the outlet mentioned, 2027 and 2028 look far more promising than 2026 does for zero-emission vehicles. That's the kind of hope we've got to hold onto, because it's January 7 in New York, and it's 50 degrees outside. Forget "EV winter." At this point, I'd settle for winter winter.