The global electric vehicle (EV) market has encountered significant challenges at the start of 2026, primarily due to policy changes in China and the United States. According to data from Benchmark Mineral Intelligence, global EV registrations fell by 3% year-on-year to nearly 1.2 million units in January. This decline is largely attributed to a 20% drop in China, where new policies, including a 5% purchase tax on EVs, have been implemented, marking a shift from previous tax exemptions. The U.S. also saw a 33% decrease in EV sales, the lowest since early 2022, as federal EV tax credits expired and market conditions under President Donald Trump became more challenging. "Global carmakers with large exposure to the U.S. market have booked some $55 billion in writedowns in the past year," reported Profit by Pakistan Today, highlighting the financial strain on manufacturers.