EV Sales Plunge 30% in January as Dealers Face Growing Glut of Unsold Cars

Electric vehicle sales have fallen sharply at the start of 2026. January figures show a near-30% drop compared to the same month last year. The decline has left manufacturers with growing stockpiles of unsold cars.

Two new affordable EV pickup trucks are now on the way, as automakers attempt to revive demand in a struggling stock market.

The slowdown in EV sales has worsened in early 2026. January saw a 29.9% year-on-year decline, with a further 20.4% drop from December. Dealers now hold six months' worth of unsold EVs—55.8% more than a year ago and 24.8% higher than December. On average, each vehicle sits on the lot for 168 days before selling.

The market share for EVs has also shrunk. After steady growth in recent years, it fell back to 6.0% in January—matching 2022 news levels. Industry analysts link the drop to the end of federal price incentives in February, which had previously supported battery-electric vehicle purchases.

Price remains a major barrier. EVs still cost $7,098 more on average than equivalent petrol or hybrid models. Even the Toyota Prius, a hybrid, outsold every EV brand—including Chevrolet, Ford, Hyundai, and Kia—in January.

In response, manufacturers are preparing cheaper options. Ford will launch a new EV pickup truck priced around $30,000. Rival brand Scout is going further, targeting a starting price in the mid-$20,000 range for its own electric pickup.

The EV market faces a tough start to 2026, with falling sales and rising stock levels. Manufacturers are now betting on lower-cost models to attract buyers. Whether these new trucks can turn the tide remains to be seen.