Global EV Sales Growth Slows as Chinese Surge Cools

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

More Top Reads From Oilprice.com

 

  • Related Posts

    Iraq Builds 2027 Budget on $58 Oil—and a Very Large Deficit

    Iraq is building its 2027 budget around $58 oil, a far cry below what the country actually needs to balance its books. The draft budget assumes crude exports of roughly…

    Saudi East-West Pipeline Moves 5.8 Million Barrels as Red Sea Route Recovers

    Saudi Arabia’s East-West pipeline had moved 5.8 million barrels of crude as of Tuesday morning, Energy Minister Prince Abdulaziz bin Salman said, adding more oil to the kingdom’s Red Sea…

    Have You Seen?

    Eskom Launches RFQ to Select Partners for 6 GW Renewable Energy and Battery Portfolio by 2030 In South Africa

    • October 7, 2026
    Eskom Launches RFQ to Select Partners for 6 GW Renewable Energy and Battery Portfolio by 2030 In South Africa

    SECI Invites Bids for 3.68 MW Rooftop Solar Projects On NDMC Buildings At Tariff Below INR 5.13/kWh

    • October 7, 2026
    SECI Invites Bids for 3.68 MW Rooftop Solar Projects On NDMC Buildings At Tariff Below INR 5.13/kWh

    U-Solar Targets 200 MW Renewable Asset Delivery as Revenue Crosses INR 1,000 Crore

    • October 7, 2026
    U-Solar Targets 200 MW Renewable Asset Delivery as Revenue Crosses INR 1,000 Crore

    Zelestra Secures $350 Million Green Financing for 203 MW Reclamation Solar Project in Indiana

    • October 7, 2026
    Zelestra Secures $350 Million Green Financing for 203 MW Reclamation Solar Project in Indiana

    MERC Orders Compensation To Rooftop Solar Developer Over Grid Availability Dispute

    • October 7, 2026
    MERC Orders Compensation To Rooftop Solar Developer Over Grid Availability Dispute

    New Fortress Energy’s Altamira LNG unit offline after turbine fault

    • October 7, 2026
    New Fortress Energy’s Altamira LNG unit offline after turbine fault

    MERC Disposes 730 MW Solar Project Dispute Between CMOPL And MSEDCL In Maharashtra

    • October 7, 2026
    MERC Disposes 730 MW Solar Project Dispute Between CMOPL And MSEDCL In Maharashtra

    String vs Central Inverters: Understanding the Two Utility-Scale Solar Architectures

    • October 7, 2026
    String vs Central Inverters: Understanding the Two Utility-Scale Solar Architectures

    GERC Grants Time To APPPL In 40 MW Wind Project Dispute Over No WTG Zone In Gujarat

    • October 7, 2026
    GERC Grants Time To APPPL In 40 MW Wind Project Dispute Over No WTG Zone In Gujarat

    Nordex Secures 389 MW Wind Turbine Orders in Türkiye, Including Energy Storage Requirements

    • October 7, 2026
    Nordex Secures 389 MW Wind Turbine Orders in Türkiye, Including Energy Storage Requirements