Global sales of fully electric and plug-in hybrid vehicles (EVs) surged by 20% year-on-year in August, reaching 1.47 million units, according to market research firm Rho Motion. The growth was primarily driven by record-breaking sales in China, despite a sharp 33% decline in Europe, marking its weakest performance since January 2023.
China, the worldâs largest EV market, saw a 42% rise in EV sales in August, surpassing one million vehicles. Rho Motion projects that China’s EV sales will increase by one-third this year, reaching 10.5 million units. In contrast, sales in Europe are expected to remain flat compared to last year, with approximately 3.1 million units sold. The drop in European sales was particularly pronounced in Germany, where the year-to-date figures show a 23% decrease, following a reduction in EV subsidies.
Charles Lester, data manager at Rho Motion, attributed China’s strong performance to increased government subsidies for drivers trading in older, more polluting vehicles, along with traditionally strong year-end vehicle sales in the region. Meanwhile, U.S. and Canadian sales saw a modest increase of 8%, reaching 160,000 units in August.
In Europe, the demand for electric vehicles has softened as consumers await more affordable models or turn to hybrid alternatives. This trend has led several automakers to scale back their electrification plans. Despite the slowdown, Germany recently introduced tax deductions of up to 40% for companies purchasing electric vehicles as part of its efforts to support the green transition.
