Global electric vehicle sales grew by 15% in August from a year earlier, slower than the 27% growth rate in January-July, as EV sales in the biggest market, China, increased by only 6%, data from EV research firm Rho Motion showed on Friday.
China continues to be the world’s biggest EV market, but sales growth cooled to 6% in August compared to a year earlier, when the Chinese sales surged with the introduction of the trade-in scheme.
Total global EV sales in August reached 1.7 million units, including 1.16 million Battery Electric Vehicles (BEVs) and 570,000 Plug-in Hybrid Electric Vehicles (PHEVs), according to Rho Motion’s data.
Sales in the United States accelerated to reach a monthly record in August, due to the upcoming expiry of the tax credits in September, Rho Motion Data Manager, Charles Lester, said.
Emissions legislation continues to underpin sales in the top European markets Germany and the UK, while China’s growth slowed compared to high sales numbers a year ago at the start of the Chinese trade-in scheme.
“Y-o-y growth in the Chinese market slowed in July-August 2025, however, this is compared to a period where subsidies for the auto trade-in scheme increased last year, which spurred on EV demand in the country,” Lester said.
Year to date, global EV sales rose by 25%, with Chinese growth also at 25% and Europe’s sales increase at 31%.
North American EV sales rose by 6% between January and August, but there is high uncertainty from the fourth quarter onwards, in view of the end of the tax credits.
The rush to take advantage of the tax credits pushed the U.S. electric vehicle market to its highest-ever monthly sales in August, with over 175,000 units sold, Rho Motion’s EV & Battery Database showed earlier this week.
Under the OBBBA, the 30D purchase credit and the 45W leasing credit – both worth up to $7,500 on eligible EVs – will end.
“There’s high uncertainty of how big the EV sales drop off will be in Q4,” said Will Roberts, Automotive Research Lead at Rho Motion.
Automakers are already adjusting to this expected dip. VW has announced plans to scale back ID.4 production in the U.S. from October, while GM will cut output at several EV facilities, Rho Motion noted.
By Tsvetana Paraskova for Oilprice.com
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