Domestic slowdown in China prompts carmakers to seek growth abroad, whilst European brands feel the heat in their home markets.
The latest electric vehicle industry research from TrendForce reveals that global sales of New Energy Vehicles (NEVs)—encompassing battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles—reached 5.37 million units in the second quarter of 2026, marking a 10.4 per cent year-on-year increase. When including hybrid electric vehicles (HEVs), these four categories accounted for a record 33.2 per cent of global vehicle sales during the quarter.
Shifting regional demand has significantly reshaped market-share rankings amongst brands in Q2 2026. China remains the world’s largest NEV market, though persistently weak domestic demand reduced its share of global sales from 66 per cent in the same period of 2025 to 56 per cent.
TrendForce notes that fewer brands can now sustain growth by relying solely on China’s domestic market, making overseas sales and shipment capabilities a vital measure of Chinese automakers’ competitiveness. BYD, for example, recorded an export-to-production ratio of 44 per cent in H2 2026, highlighting the growing importance of international markets to the group’s overall operations.
The BYD brand regained the lead in global BEV sales in Q2 2026. Although its sales remained below last year’s figures, the year-on-year decline narrowed significantly compared to the previous quarter. Tesla fell to second place despite achieving 25 per cent year-on-year growth in global sales.
Leapmotor secured third place globally for the first time, largely due to strong sales within China. However, its major shareholder, Stellantis, provides it with valuable production, sales, and distribution expertise in Europe, giving the brand a distinct advantage for international expansion.
Toyota, ranked seventh, recorded an impressive 143 per cent year-on-year sales increase during the quarter. By leveraging its extensive global distribution network, Toyota has rapidly introduced new models across multiple markets, enhancing its reputation for BEV sales. Meanwhile, Volkswagen dropped out of the top 10 in global BEV sales for the first time, underlining growing concerns regarding its electrification strategy.
BYD maintained its lead in the PHEV market in Q2 2026, widening its market-share gap over rival manufacturers. Competition from second place downwards remained fierce, with market-share differences between most brands standing at less than 1 percentage point.
Europe has emerged as a crucial strategic market for Chinese automakers, as domestic PHEV sales in China decline and the European Union levies no additional tariffs on Chinese-made PHEVs. In Q2 2026, Chinese brands (excluding Volvo Cars) captured nearly 30 per cent of the Western European PHEV market.
