EV Demand Climbs 3% for Third Consecutive Month in May
Global demand for electric vehicles saw an uptick for the third straight month in May, driven by ongoing incentives and high petrol prices that continue to encourage the transition from combustion-engine vehicles, as reported by consultancy Benchmark Mineral Intelligence on Wednesday. Registrations of new battery-electric vehicles and plug-in hybrid electric vehicles saw a year-over-year increase of 3 percent, totalling around 1.8 million in May. This figure serves as an indicator of sales, contributing to a total increase of 0.9 percent compared to the previous year for the first five months, according to BMI. “Europe really is the driving factor towards this growth at the moment,” stated Charles Lester.
Registrations rose by 23 percent to around 415,000 units in May in the region, influenced by government subsidies and high petrol prices encouraging earlier purchases, Lester observed. The global picture, however, remained inconsistent. In China, May registrations saw a decrease of 9 percent year-over-year, amounting to around 987,000 vehicles. This downturn occurred after the end of support for auto trade-ins and the expiration of a tax incentive for electric vehicle purchases in early 2026.
Given the subdued domestic sales observed this year, a growing number of Chinese OEMs are aiming to expand their presence in the global market, as noted by BMI. “The trend observed in recent months indicates joint ventures and the potential for Chinese OEMs to operate within underutilised capacity in Europe,” Lester stated. Sales in North America saw a decrease of 26 percent, amounting to around 123,000 units in May.
This downturn was influenced by the conclusion of a U.S. tax credit program and the Trump administration’s suggestions to relax carbon dioxide emissions regulations. The emphasis has transitioned to the manufacturing of internal combustion engines and hybrid electric vehicles in the U.S., as noted by Lester. He observed that Canada’s choice to permit specific Chinese OEMs into its market will not significantly change the trajectory of the North American EV market.
