Global Carmakers Face $65bn EV Write-Down as UK Defies Market Slowdown

Global automakers have written off an estimated $65bn in electric vehicle investments as consumer demand cools in Europe and the US. Despite this global "correction," the UK market is bucking the trend, with EV registrations reaching a record 24% share of the new car market in early 2026. Experts attribute the UK’s resilience to aggressive fleet incentives and a growing secondary market, even as giants like Ford and Volkswagen scale back production elsewhere.

By: AXL Media

Published: Feb 17, 2026, 3:44 AM EST

Source: Information for this report was sourced from City AM.

The $65 Billion Reality Check

The global transition to electric vehicles has hit a significant financial speed bump. New data suggests that the world’s leading car manufacturers have collectively written off $65bn in EV related assets, R&D, and production lines over the past 12 months. This massive figure follows a cooling of enthusiast demand and high interest rates that have made expensive new EVs less attractive to middle class buyers. Industry leaders, including Mercedes Benz and GM, have recently walked back previous pledges to go "all electric" by 2030, citing the need for a more flexible "multi pathway" approach that includes hybrids.

The UK’s Surprising Resilience

While the global outlook appears grim, the UK is emerging as a rare bright spot for the industry. New figures for the first quarter of 2026 show that battery electric vehicles (BEVs) accounted for nearly one in four new car sales. This 24% market share is a significant jump from the 16% seen just two years ago. Analysts suggest that the UK’s "Benefit in Kind" tax rates for company car drivers remain a powerful motivator, shielding the domestic market from the broader European slump where similar incentives have been rolled back.

The Rise of the Second-Hand Market

A key driver of the UK’s continued EV growth is the maturation of the used car market. As the first wave of three year fleet leases expires, a flood of affordable second hand EVs is hitting the forecourts. This has lowered the "barrier to entry" for private buyers who were previously priced out of the new market. Data from Auto Trader indicates that used EV prices have finally stabilized, leading to a 35% year on year increase in sales for three to five year old electric models.