According to the latest statistics from TrendForce, global sales of new energy vehicles, including pure electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel cell vehicles, reached 3.94 million units in the first quarter of 2026, representing a 2% year-on-year decrease. These vehicles accounted for 19% of total global car sales during the quarter. The Chinese new energy vehicle market has entered a period of adjustment, while the Western European market shows signs of recovery. Japan and South Korea also recorded significant growth in BEV sales.
Analyzing the Q1 BEV sales rankings, the intense focus of Chinese automakers on their domestic market, coupled with weak demand, impacted the sales volume and market share of many brands. Tesla surpassed BYD to reclaim the top position in pure EV sales. BYD, Geely, and SAIC-GM-Wuling, ranked second to fourth respectively, all experienced year-on-year sales declines. In contrast, Leapmotor, ranked fifth, achieved year-on-year sales growth against the trend, driven by its rapidly expanding product portfolio and value-for-money strategy. Meanwhile, Kia and Toyota demonstrated resilience through their diversified market presence, improving their rankings this quarter.
The PHEV market in Q1 continued to be dominated by Chinese brands. While BYD maintained its leading position, its sales showed a year-on-year decrease. Fierce competition in the domestic market is prompting major Chinese automakers to shift their strategic focus overseas. Their product powertrain architectures are also expanding from pure electric to various hybrid configurations. PHEV models from brands like BYD, Jaecoo (Chery Group), and MG have already achieved success in overseas markets.
TrendForce estimates that global new energy vehicle sales will reach 23.35 million units in 2026, a 14% year-on-year increase, indicating continued growth resilience compared to traditional fuel vehicles. However, upstream cost pressures are negatively impacting demand. Price pressures in the automotive market this year are more severe than in 2025, with the primary driver shifting to "structural increases in raw material prices."
As vehicle intelligence deepens, the high-frequency processing of massive data creates a strong dependence on memory specifications. However, automotive memory, due to significant price increases and supply-demand imbalances, has become a major cost burden for automakers. In the Chinese market, some domestic brands have announced price increases for high-end intelligent driving solutions and models to reflect memory cost pressures. In other markets, automakers also face cost challenges from memory components or geopolitical factors. This is likely to compress future vehicle discount margins. If it leads to widespread price increases, it could also offset the policy incentives for new energy vehicles introduced by various countries.
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