Global EV Sales Growth Slows in July Amid China’s Decline
Global electric vehicle (EV) sales grew 21% year-on-year in July, marking the slowest growth since January, according to Rho Motion data reported by Reuters. The slowdown was driven by weaker sales of plug-in hybrid vehicles in China, which accounts for over 50% of global EV sales. China’s growth rate dropped sharply from an average of 36% in the first half of 2025 to just 12% in July, following the discontinuation of several government subsidy programs for EV and plug-in hybrid purchases.
China’s largest EV maker, BYD, recorded its third consecutive month of declining registrations, contributing to the overall slowdown. Despite this, global figures suggest other regions are compensating for the dip. Europe saw a sharp 48% rise in EV sales to about 390,000 units, supported by strong decarbonization incentives. North America posted a 10% increase to over 170,000 units, while the rest of the world grew 55% to more than 140,000 units.
Globally, sales of plug-in hybrids and battery-electric vehicles reached 1.6 million in July. While China’s slowdown poses challenges to global growth momentum, surging demand in Europe and emerging markets signals continued global EV expansion, albeit at a more moderate pace.
China’s largest EV maker, BYD, recorded its third consecutive month of declining registrations, contributing to the overall slowdown. Despite this, global figures suggest other regions are compensating for the dip. Europe saw a sharp 48% rise in EV sales to about 390,000 units, supported by strong decarbonization incentives. North America posted a 10% increase to over 170,000 units, while the rest of the world grew 55% to more than 140,000 units.
Globally, sales of plug-in hybrids and battery-electric vehicles reached 1.6 million in July. While China’s slowdown poses challenges to global growth momentum, surging demand in Europe and emerging markets signals continued global EV expansion, albeit at a more moderate pace.
