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flag Global car sales fell in January 2026 due to fading incentives, high costs, and EV policy changes.

flag Global passenger vehicle sales declined 1.2% in January 2026, with China, the U.S., and Europe all reporting drops due to ending government subsidies, rising prices, and the expiration of the $7,500 federal EV tax credit. flag Despite a 4.5% rise in 2025, weak demand persists amid ongoing chip shortages, high raw material costs, and automakers adjusting EV strategies, leading to increased write-offs. flag While passenger vehicle forecasts remain flat to slightly positive, commercial truck demand shows stronger outlooks, with Volvo upgrading Class 8 truck growth projections for Europe and the U.S.

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