Top 10 Countries for Electric Vehicle Policy: 2 Major Rollbacks Amid China’s 60% EV Share (2024-2026)

The global electric vehicle (EV) policy landscape has fractured, marking an end to the synchronized global push for transport electrification. A sharp divergence is now evident between China, which continues to consolidate its dominance through unwavering industrial policy, and Western powers like the United States and the European Union, which executed major policy rollbacks in 2025. Following a change in administration, the U.S. revoked its federal EV mandate in January 2025, a move that precipitated the EU’s decision to drop its 2035 ban on new internal combustion engine (ICE) vehicles in December 2025. This has created a multi-speed transition, with China maintaining its lead with approximately 60% of global EV sales in 2024, while Western automakers face a period of significant uncertainty. The dominant theme for 2025 and 2026 is this pronounced policy fragmentation, shifting the narrative from coordinated climate action to one of protectionism and diverging national interests.

1. United States: The Great Federal Rollback

Jurisdiction: United States
Key Metric: Accounted for 10% of global EV sales in 2025
Policy Action: Revoked the Biden-era federal EV mandate and EPA emissions standards in January 2025, leading to delayed or canceled EV and battery factory projects.
Source: Trump reverses Biden’s electric vehicle mandate

2. China: Unwavering Industrial Strategy

Jurisdiction: China
Key Metric: ~60% of global EV sales in 2024; EV share projected to hit 80% by 2030
Policy Action: Maintained strong supply-side support, production credits, and a massive build-out of public charging infrastructure.
Source: What the Global Electric Vehicle Market Signals for US Automakers

3. European Union: Reversal on the 2035 ICE Ban

Jurisdiction: European Union
Key Metric: BEV market share projected to reach 23% in 2026
Policy Action: Dropped its effective ban on new ICE cars from 2035 in December 2025, following pressure from industry and member states.
Source: EU drops 2035 combustion engine ban as global EV shift faces reset

EU Electric Vehicle Sales Surpass Petrol Cars

This chart illustrates the strong market momentum EVs had in the EU, providing crucial context that highlights the significance and potential negative impact of the ‘reversal on the 2035 ICE ban’.

(Source: LinkedIn)

4. Canada: Mandate Scrapped Following US Lead

Jurisdiction: Canada
Key Metric: Original mandate targeted 60% EV sales by 2030
Policy Action: Scrapped its federal EV mandates in February 2026, which had required 100% zero-emission vehicle sales by 2035.
Source: Automakers want Canada to scrap its EV sales mandate

5. United Kingdom: Holding Firm on ZEV Mandate

Jurisdiction: United Kingdom
Key Metric: Mandate requires 22% of new car sales to be ZEV in 2024, rising to 80% by 2030
Policy Action: Maintained its independent Zero Emission Vehicle (ZEV) mandate despite policy reversals in the EU and US.
Source: Moves to rip up EV rulebook mount on either side of the Channel

6. Norway: The Global EV Adoption Pacesetter

Jurisdiction: Norway
Key Metric: BEVs accounted for 88.9% of new car registrations in 2024
Policy Action: On track to meet its goal of 100% electric new car sales by 2025 using a comprehensive package of tax exemptions and incentives.
Source: EV Growth by Country: Trends and Challenges Explained

7. Germany: Facing Economic and Political Headwinds

Jurisdiction: Germany
Key Metric: Sales of new BEVs fell by 27% in 2024
Policy Action: Struggling to meet its goal of 15 million EVs by 2030 after the abrupt end of purchase subsidies; was a key voice in reversing the EU’s 2035 ban.
Source: Germany far from 2030 electric vehicle target

Germany, UK Lead European EV Sales in 2025

This chart establishes Germany’s position as a sales leader, creating a compelling narrative contrast with the ‘economic and political headwinds’ that the section details are threatening its market.

(Source: TradingPedia)

8. India: Building a Foundational Ecosystem

Jurisdiction: India
Key Metric: Target to install 500 GW of non-fossil fuel power generation capacity by 2030
Policy Action: Policy is focused on expanding charging infrastructure, battery-swapping networks, and accelerating fleet turnover via the 2024 Vehicle Scrapping Policy.
Source: [PDF] SECTORAL INSIGHTS: TRANSPORT – NITI Aayog

9. Thailand: Southeast Asia’s Emerging Policy Leader

Jurisdiction: Thailand
Key Metric: Third-largest car market in Southeast Asia
Policy Action: Implemented its “EV 3.5 Policy” in 2024, using subsidies and tax incentives to stimulate both EV adoption and local production.
Source: [PDF] Global EV Outlook 2025

10. California: The Sub-National Influencer Under Fire

Jurisdiction: California
Key Metric: 2.2 million ZEVs on the road by May 2025
Policy Action: The federal government voted to block its waiver authority in May 2025, creating a direct challenge to its mandate for 100% ZEV sales by 2035.
Source: US Senate blocks California’s electric car mandate in historic vote

Table: Global EV Policy Scorecard (2024-2026)

EV Policy Divergence, Automakers Face a Patchwork of Global Regulations

The fragmentation of global EV policy creates a profound strategic dilemma for automakers. Companies that made substantial investment commitments based on coordinated global targets now face a bifurcated reality. In the West, particularly the United States and Canada, policy rollbacks have created significant investment uncertainty, leading to the delay and cancellation of new EV and battery factories. Automakers must now navigate a complex and conflicting regulatory environment, such as the legal clash between California’s aggressive ZEV mandate and the new, weaker federal stance. This policy whiplash slows near-term adoption forecasts and complicates long-range planning. In stark contrast, China’s consistent, long-term industrial policy provides a stable and predictable market, giving its domestic automakers a significant competitive advantage in scaling production and innovation.

Global EV Sales Show Divergent Regional Trends

The chart’s headline about ‘divergent regional trends’ directly reflects and provides evidence for the section’s theme of ‘policy divergence’ and the resulting ‘patchwork of global regulations.’

(Source: Center on Global Energy Policy – Columbia University)

Global Comparison, China’s EV Policy Cements 60% Market Leadership

A clear geographic hierarchy now defines the global EV market. China stands alone as the dominant leader, leveraging its immense market size and unwavering government support to command the entire supply chain, from battery minerals to vehicle assembly. At the other end of the spectrum, Norway continues to serve as the global pacesetter for adoption, on track to achieve its 100% new EV sales target by 2025, a feat driven by decades of heavy incentives. The major Western economic blocs, the United States and the European Union, have entered a period of policy-driven deceleration. Meanwhile, emerging markets are seeking to capitalize on this shift. India and Thailand are implementing foundational policies focused on infrastructure and manufacturing to attract investment and build domestic EV industries, positioning themselves as future growth centers.

2 Major Reversals, US and EU Policy Shifts Signal Market Headwinds

The policy reversals in the United States and European Union do not reflect a failure of EV technology but rather the growing friction of transitioning to a mass market. The initial phase of EV adoption was driven by early adopters and generous subsidies. The current phase is defined by more pragmatic challenges: vehicle affordability, charging infrastructure gaps, and political resistance. The rollbacks in 2025 indicate that the political and economic costs of the transition are meeting resistance. In Germany, for example, a 27% drop in BEV sales in 2024 after subsidies ended was a key factor in its push to soften EU targets. This demonstrates that while the technology is mature and commercially viable, as proven by China’s massive market, sustained policy support and a clear long-term vision are critical for navigating the difficult middle stages of mass adoption.

Global EV Sales Drop Sharply in January 2026

A sharp global sales drop is a clear manifestation of the ‘market headwinds’ caused by the major US and EU policy reversals, which are the explicit focus of this summary section.

(Source: Benchmark Source)

United States EV Policy Reversal Scenarios After the January 2025 Mandate Change

The critical strategic action for the year ahead is to monitor how legacy automakers in the U.S. and Europe adjust their capital allocation in response to this policy whiplash. A significant slowdown in EV investment would risk permanently ceding global technology leadership and market share to Chinese competitors, who face no such domestic uncertainty.

• Watch Signal 1: Automaker Investment. Following reports of factory cancellations in April 2025, monitor quarterly earnings calls and capital expenditure announcements from major Western automakers for further delays or reductions in EV and battery production targets.
• Watch Signal 2: The California Conflict. The legal battle over California’s authority to set its own emissions standards, ignited by the Senate’s vote in May 2025, will be a defining factor. A federal victory could dismantle the influence of a dozen-plus states that follow California’s lead, while a victory for California would solidify a two-tiered American auto market.
• Watch Signal 3: EU Follow-Through. While the EU dropped the 2035 ICE ban in December 2025, its CO₂ emissions standards remain in place. Any move in 2026 to weaken these underlying regulations would signal a more profound and long-lasting retreat from electrification goals.
• Watch Signal 4: Escalating Trade Friction. Expect the U.S. and EU to increasingly rely on protectionist trade measures, such as tariffs on Chinese-made EVs and batteries, as their primary tool to shield domestic industries from the competitive pressure created by their own policy divergence.

US EV Growth Forecast Slashed After Policy Changes

A chart showing a slashed EV growth forecast directly illustrates one of the key negative ‘scenarios’ resulting from the US policy reversal, making it a perfect fit for this forward-looking section.

(Source: LinkedIn)

The questions your competitors are already asking

This report covers one angle of the diverging EV industrial policy between China and the West. The questions that matter most depend on your work.

• Which automakers are gaining or losing ground following the US federal mandate rollback and the EU’s 2035 ICE ban reversal?
• What is the status of US EV and battery factory projects following the 2025 federal mandate repeal?
• What is the outlook for EV market share in the US and Europe by 2030, given the policy fragmentation?

This report does not answer these. Enki Brief Pro does.

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