Global demand for electric vehicles rose for a fifth consecutive month in July, driven by robust growth in Europe, even as sales weakened in China and North America, according to data released Thursday by consultancy Benchmark Mineral Intelligence.
Sales of battery-electric and plug-in hybrid vehicles climbed 9% from a year earlier to 1.85 million units in July, bringing year-to-date volumes to 11.5 million vehicles.
The figures highlight a growing divergence between the world’s major EV markets. European subsidies are propping up demand, while the U.S. market has been hit by the removal of federal EV tax credits, and Chinese automakers are increasingly turning to exports to sustain growth.
In Europe, sales climbed 33% to 450,000 units in July, pushing year-to-date growth to 28%.
“High growth persisted in Europe’s larger automotive markets, many of which have experienced a return of an EV subsidy scheme over the past 18 months,” BMI said.
France, Germany and Britain led the region’s gains, posting EV sales growth of 81%, 46% and 43%, respectively, in July.
By contrast, sales in China fell 5% to 980,000 vehicles, while North America saw a sharper decline, dropping 27% to 140,000 vehicles following the expiration of U.S. EV tax credits.
Sales in the rest of the world jumped 97% to 280,000 units.
The North American slump follows the Trump administration’s decision to end the federal EV tax credit last September, a shift that has prompted automakers including Ford, General Motors and Stellantis to scale back electric vehicle investment in the region. Canada, meanwhile, has moved to open its market to a limited number of Chinese-made EVs at reduced tariff rates in an effort to revive domestic demand.
In China, softening domestic sales have pushed manufacturers such as BYD, Chery and Geely to lean more heavily on overseas markets, with exports climbing to record levels even as the gap between China’s domestic weakness and its export strength continues to widen.
Analysts have pointed to a wave of new, more affordable electric models as a key driver of Europe’s rally, alongside elevated gasoline prices and the return of national subsidy programs across several of the region’s largest markets.
