Global EV Sales Drop 2% YoY in Q1 2026; Tesla Reclaims BEV Sales Crown

In the first quarter of 2026, global sales of new energy vehicles (NEVs) reached 3.94 million units, down 2% year-over-year, accounting for 19% of total global vehicle sales. In the battery electric vehicle (BEV) segment, Tesla surpassed BYD to reclaim the top spot globally; BYD, Geely, and SAIC-GM-Wuling ranked second through fourth, respectively, though all reported lower sales compared to the same period last year. Leapmotor achieved逆势 growth—growing against the market trend—thanks to rapid product expansion and a cost-performance strategy. Kia and Toyota climbed in the quarterly rankings, benefiting from diversified market presence that effectively mitigated regional demand volatility. The plug-in hybrid electric vehicle (PHEV) market remains dominated by Chinese brands, with BYD leading the segment despite also experiencing a year-over-year decline in sales. Facing intensifying domestic competition, several Chinese automakers are shifting strategic focus toward overseas markets and broadening their powertrain technology portfolios, expanding beyond pure electric vehicles into various hybrid configurations. Global NEV sales for the full year 2026 are projected to reach 23.35 million units, up 14% year-over-year, continuing to outpace growth in internal combustion engine vehicles. The report also notes that price pressures facing the automotive industry in 2026 are greater than in 2025, primarily driven by structural increases in raw material costs. Amid accelerating trends toward vehicle intelligence, automotive memory chips have emerged as a new focal point of cost pressure.