Global Electric Vehicle Fleet Forecast to Reach 116 Million in 2026 Despite Policy Shifts

Brickinfo News Agency – A new analysis projects that the number of electric vehicles (EVs) in use globally will reach 116 million by 2026. This figure represents a robust 30% year-over-year increase across all vehicle categories—including cars, buses, vans, and heavy trucks—even as major markets like the United States implement tariffs and governments worldwide begin to scale back on purchase subsidies and incentives.

According to the latest data from Gartner, Inc., while Battery Electric Vehicles (BEVs) will continue to comprise the majority of the installed base—projected at over 76 million units—consumer preference is shifting noticeably toward hybrids. The ownership of Plug-in Hybrid Electric Vehicles (PHEVs) is forecast to grow by 32% in 2026, reaching nearly 40 million units. Consequently, the forecast for the BEV share of sales has been revised downward from 77% to 63%, reflecting a slower-than-anticipated adoption rate for fully electric models as drivers seek the flexibility of dual powertrains.

China is set to maintain its dominance in the sector, projected to account for 61% of the total global EV installed base in 2026. Demand in the region has exceeded previous forecasts, jumping from 13.4 million to a projected 16.5 million shipments. This surge is driven by aggressive pricing strategies from domestic vendors and ongoing investments in charging infrastructure. However, the market faces changes as the Chinese government intervenes to curb excessive discounting and begins to reduce subsidies.

Jonathan Davenport, Sr Director Analyst at Gartner, emphasized that the market is growing despite significant regulatory headwinds. “Despite the U.S. government introducing tariffs on vehicle imports and many governments removing the subsidies and incentives for purchasing EVs, the number of EVs on the road is forecast to increase 30% in 2026,” said Davenport. He added that the rise in PHEVs indicates that “customers value the reassurance of a back-up petrol engine for use, should they need it.”

In the United States, demand has softened following the removal of incentives and the introduction of import tariffs. Meanwhile, automakers are diversifying their portfolios to include more PHEVs and “range extender” vehicles—where a petrol engine powers a generator to charge the battery—to meet consumer needs. Ultimately, the industry’s push toward electrification remains largely driven by regulatory pressure to phase out internal combustion engines (ICE) and reduce particulate matter and CO2 emissions, rather than direct consumer demand alone.