Europe accelerates, China dominates, the U.S. retreats, and Canada rebounds as rebates return

Vehicle electrification is advancing worldwide, but at uneven rates. According to the International Energy Agency, roughly 23 million electric vehicles are expected to be sold in 2026, accounting for nearly 28 percent of the global market.

Beneath that average, the gaps are widening. China remains the volume giant, accounting for more than half of global sales, even as domestic demand softens and exports reach a record high. Europe is the growth engine in 2026, up about 30 percent, with nearly one in three new cars electrified. By contrast, U.S. sales are down 20 to 30 percent after federal incentives ended, while hybrids are gaining ground.

This divergence raises questions about U.S. competitiveness, as the country falls behind in production and in the race to build fast-charging networks, where China holds a clear lead.

In Canada, the return of the federal rebate (up to 5,000 dollars) and rising gas prices have revived the market: the zero-emission vehicle share reached 12.2 percent in March 2026, up from 6.5 percent a year earlier. Over time, this will mean a larger electric fleet for the aftermarket to service.

Source(s) image: Adobe Stock