The global electric car market no longer follows a single trajectory. It is now divided into several zones, with very different paces across regions: strong acceleration in Europe, a sharp slowdown in North America, domestic cooling in China, but a surge in Chinese exports and a rapid rise of emerging countries.
According to Benchmark Mineral Intelligence data cited by Reuters, global sales of rechargeable vehicles — fully electric cars and plug-in hybrids — reached 1.83 million units in August 2026, a modest increase of 2 % from the same month of the previous year. Since the start of the year, the global volume has reached 13.4 million vehicles.
Behind this modest growth, the landscape is deeply contrasting. The market is not slowing everywhere. It is changing geography.
Europe accelerates thanks to public subsidies
Europe appears as the engine for the month of August.
Sales of rechargeable vehicles there rose by 36 % year on year, reaching around 380,000 units. Since January, the increase stands at 29 %.
This performance is all the more notable as August is traditionally a quieter month for the European car market, due to the summertime period.
One of the key factors remains public support. Several European countries are using subsidies, purchase bonuses, or tax measures to accelerate the transition to low-emission vehicles.
Spain illustrates this strategy. Madrid launched the Auto+ program, with an overall budget of €400 million in 2026. The line for individuals includes subsidies that can reach €4,500 for the purchase of electric or electrified cars.
In France, the market also reached record levels. According to Avere-France, electric passenger cars and plug-in hybrids accounted for 38.8 % of the market in August 2026, with 38,917 electric vehicles registered in the month.
Europe thus shows that public subsidies, when clear and sufficiently strong, can still trigger substantial demand.
North America slides after the end of incentives
The situation is the opposite in North America.
Sales of rechargeable vehicles fell by 33 % in August, to around 140,000 units. This drop is largely explained by a difficult year-over-year comparison in the United States.
In 2025, many American buyers rushed to take advantage of the federal tax credit before the program ended in late September 2025. This rush artificially inflated August 2025 sales. Once the incentive was removed, the market slowed.
Some consumers are also turning toward hybrid vehicles, seen as a more reassuring compromise: cheaper than some fully electric models, easier to use in areas where charging infrastructure remains insufficient, and without range concerns.
The American case recalls an important reality: the electric transition depends not only on technology. It also depends on price, public subsidies, household confidence, and the charging network.
China slows at home, but hits export records
China remains the world’s largest market for electric and electrified vehicles, but its domestic market shows signs of saturation.
In August, Chinese sales of rechargeable vehicles fell by 11 % year on year to around 1.03 million units. This decline should be read with caution: China starts from a very high level, and new energy vehicles (NEV) still accounted for 64.7 % of domestic car sales in August — a penetration level that, in relative terms, remains far above that of all other major regions of the world. The decline thus stems less from a rejection of electric vehicles than from a market that has become very mature, highly competitive, and subject to a high base of comparison.
In detail, it is mainly battery electric vehicles (BEV) that sustain the remaining domestic growth, while plug-in hybrid vehicle (PHEV) sales fall slightly — a gradual shift toward all-electric as the range and offerings improve.
The real shift for China now lies in exports. Manufacturers offset the domestic slowdown with a massive international push: in August, Chinese exports of electric and plug-in hybrid vehicles jumped 154.7 % year on year, according to data from the China Passenger Car Association cited by Reuters. In the first eight months of the year, the cumulative NEV exports have already surpassed the total for all of 2025 — a shift that confirms that export is no longer a mere supplement, but the main growth engine of the Chinese industry.
BYD remains far and away the leading Chinese exporter of electrified vehicles, well ahead of Geely, Chery, Tesla China and Changan. The group has even raised its international sales target for the second time this year, a sign that external markets are now at the heart of its growth strategy — alongside Geely, Chery, SAIC or Leapmotor, which are also seeking new levers in Europe, Southeast Asia, Latin America, the Middle East and Africa.
China thus no longer content with being the world’s leading market for EVs. It is also becoming the main exporter of the automotive transition.
Emerging countries become the new growth ground
The fastest growth does not come from traditional markets, but from the rest of the world.
In Southeast Asia, Latin America, and parts of the Middle East, sales of rechargeable vehicles rose by 97 % in August, reaching around 290,000 units.
This dynamic is explained by several factors: the arrival of cheaper Chinese models, rising fuel prices in several countries, a desire to reduce energy dependence, nascent public policies, and progressive improvement of charging infrastructure.
For Chinese manufacturers, these markets represent a major opportunity. They find consumers more price-sensitive than in Europe or North America, but increasingly open to affordable, connected, and well-equipped electric vehicles.
This trend could redraw the global automotive industry: electric will not be the exclusive product of rich countries. It is becoming a mass-market product in emerging economies.
Three markets, three realities
The global market is now divided into three major blocks.
In Europe, the transition accelerates thanks to public subsidies, climate constraints, rising energy prices, and an increasingly broad offer.
In North America, the end of U.S. federal incentives reveals a more fragile market, where price, range, and charging remain significant obstacles for a portion of households.
In China, the domestic market slows after years of rapid growth, but manufacturers export massively to sustain their development, led by groups like BYD whose role in export becomes central.
Alongside these three blocks, emerging countries become the new growth front. That is where sales are growing the fastest.
What this means for Tunisia
This global divide also concerns Tunisia.
The surge in Chinese exports could accelerate the arrival of cheaper electric vehicles on African and North African markets. For consumers, this may open access to more affordable models. For importers, it creates new business opportunities.
But this evolution also raises several questions: charging networks, parts availability, after-sales service, mechanic training, battery warranties, taxation, technical standards, and the capacity of the electrical grid to support a future increase in the electric fleet.
Tunisia remains a small market for electric cars, but the acceleration is real. After about 250 electric vehicles in circulation in 2024 and 570 by the end of April 2025, the market recorded 539 sales for the entire year 2025. The takeoff occurs in 2026: between January and July, more than 1,500 100% electric cars were registered, in addition to more than 2,100 plug-in hybrids. The infrastructure lagges behind, with around 170 charging points recorded in early 2026 and a little over 200 in spring. The official target remains ambitious: 50,000 electric vehicles and 5,000 charging points by 2030, then 125,000 vehicles and 12,000 public charging points by 2035.
The real challenge will therefore not be merely importing electric cars. It will be to build the entire ecosystem around them: charging, maintenance, training, financing, insurance, and the regulatory framework.
Conclusion: the electric car advances, but at different paces across the board
August 2026 shows that the global electric transition is entering a new phase.
Overall growth remains positive, but it is slowing sharply. Europe accelerates, North America recedes, China shifts its growth toward export — led by players like BYD — and emerging countries become the most dynamic driving force.
There is no longer a single global market for electric cars. There are several parallel transitions, each dependent on public subsidies, purchasing power, infrastructure, industrial strategy, and Chinese competition.
For manufacturers, the message is clear: the battle will no longer be fought only in the major historical markets. It will also be fought in emerging countries, where price, reliability, and access to charging will make the difference.
For Tunisia, the electric wave arrives in stages. But with the pressure of Chinese exports and the gradual decrease in costs, it could arrive sooner than expected.
