Global sales of fully electric and plug-in hybrid vehicles surged 26% in September from a year earlier to a record 2.1 million units, boosted by robust demand in China and a last-minute rush by U.S. consumers to claim expiring tax credits, market research firm Rho Motion said on Wednesday.
China remained the clear leader, accounting for about two-thirds of total sales, or roughly 1.3 million vehicles, according to Charles Lester, data manager at Rho Motion. “With the federal incentive gone, U.S. demand is expected to drop sharply in the final quarter of the year,” Lester said.
See also: U.S. EV Sales Hit Record 438,487 Units in Q3 2025 Ahead of Federal Tax Credit Expiration
The report highlighted that September — typically China’s busiest month for car buying — saw strong sales as shoppers moved to take advantage of local trade-in subsidies before they began to phase out in some regions. In the United States, buyers rushed to purchase electric vehicles ahead of the expiration of the $7,500 federal EV tax credit, driving sales to a new regional record. Rho Motion expects demand to decline in the coming months “as both consumers and businesses lose access to the federal incentives that have underpinned EV purchases.”
In Europe, sales hit a new high, rising 36% year-on-year to 427,541 units, helped by incentives in Germany and solid demand in the United Kingdom. Competition in the region is expected to intensify as Tesla rolls out a lower-cost Model Y variant. Meanwhile, North American sales climbed 66% to about 215,000 vehicles, while sales in the rest of the world jumped 48% to 153,594 units.
See also: China’s NEV Retail Sales Rise 15.5% in September as BEV Deliveries Hit Record 826,000 Units
Some automakers, including General Motors and Hyundai, are attempting to mitigate the expected slowdown in U.S. demand by offering discounts and leveraging dealer inventories. However, Rho Motion said overall production is being scaled back as the market adjusts to the end of key incentives.
The September figures underscore China’s dominant role in the global electric vehicle market, which now accounts for more than half of worldwide EV sales. Despite growing competition and changing incentive policies, analysts say long-term momentum for electrified vehicles remains strong, supported by technological progress and expanding model lineups.
