Weekly E-Mobility Digest: ICE Sales Slip Below Half, China Reshapes Battery Taxes, BYD Surges in Europe

The global auto market crossed a symbolic threshold in the first six months of 2026: for the first time on record, internal combustion engine vehicles accounted for less than half of all new vehicles sold worldwide. The milestone, reported in the latest e-mobility industry roundup, underscores how quickly electrified powertrains — both battery-electric and hybrid — have moved from niche to mainstream across major markets.

Policy shifts in China are also drawing attention. Beijing has moved to reintroduce a consumption tax on lithium-ion batteries, while deliberately keeping sodium-ion and solid-state chemistries exempt. The carve-out signals a strategic bet on next-generation battery technologies, nudging manufacturers toward chemistries that reduce reliance on lithium and diversify the supply chain.

On the manufacturing side, PowerCo and Gotion are preparing to commit roughly €3.22 billion (about US$3.68 billion) across three joint ventures covering batteries and materials. The scale of the investment reflects ongoing confidence that demand for cells will keep climbing even as pricing pressure intensifies.

European sales data offered another bright spot. September’s electric vehicle surge lifted both BYD and Tesla, with BYD standing out thanks to a 152% jump in its overseas volumes. The figure highlights how aggressively the Chinese automaker is expanding beyond its home market — and how much of that growth is now landing in Europe.

Taken together, the developments point to a market in transition on multiple fronts: shifting buyer preferences, evolving tax policy in the world’s largest EV market, heavy capital commitments in battery production, and a competitive landscape where overseas expansion is becoming a defining metric for ambitious brands.