Global sales of electric vehicles (EVs) and plug-in hybrids increased 24% year-on-year in June, driven by continued demand in China and Europe, according to market research firm Rho Motion. However, sales declined in North America, reflecting policy shifts and a slowdown in Canadian and U.S. demand.
Sales of battery-electric vehicles (BEVs) and plug-in hybrids reached 1.8 million units in June. China accounted for the majority of this growth, with registrations climbing 28% to 1.11 million vehicles. Europe followed with a 23% increase to about 390,000 units, while the “rest of the world” category — comprising emerging markets in Southeast Asia, South and Central America — surged 43%, surpassing 140,000 units.
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In contrast, North America posted a 9% drop in sales, totaling slightly above 140,000 vehicles. For the first time, the region fell behind the rest of the world in monthly EV registrations, reflecting a subdued outlook for 2025.
“North America is facing headwinds,” said Charles Lester, data manager at Rho Motion. He pointed to the earlier-than-expected end of certain EV tax credits under the spending bill passed during former President Donald Trump’s term as a key factor. “Sales in the United States fell 1% in June, and Canada also saw a decline, contributing to the region’s overall slowdown,” he said.
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In Europe, supportive incentives for both private and fleet buyers in key markets such as Germany and Spain, coupled with a growing range of affordable electric models, are expected to help maintain the region’s growth trajectory through the second half of the year.
While established European manufacturers like Volkswagen and Renault remain key players in the small EV segment, Chinese brands such as BYD are gaining market share across Europe and emerging markets, helping to drive overall global demand.
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Lester added that although some Chinese cities have experienced temporary subsidy reductions, the broader outlook remains strong. “We expect more subsidy amounts to become available in the second half, which could lead to a significant boost in volumes towards the end of the year,” he said.
Global automakers are continuing to monitor market dynamics closely, particularly in light of a 25% U.S. import tariff that has prompted several firms to withdraw or revise their 2025 forecasts.
