Global EV Sales Growth Slows in July as China’s Momentum Eases

Global electric vehicle (EV) sales rose 21 percent year-on-year in July, marking the slowest growth since January and a dip from the 25 percent recorded in June, according to data from market research firm Rho Motion. The slowdown was largely driven by weaker plug-in hybrid sales in China, the world’s largest car market and the source of more than half of global EV sales.

Rho Motion’s figures, which combine battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), show total global sales reaching 1.6 million units in July. While China remained the dominant market, its pace of growth dropped sharply from the 36 percent monthly average in the first half of the year to just 12 percent in July. Analysts attributed the slowdown to a temporary pause in certain 2025 government subsidy schemes for EV and PHEV purchases.

Despite the cooling in China, other regions posted strong gains that helped offset the decline. European sales surged 48 percent to around 390,000 units, supported by government incentives aimed at accelerating decarbonisation and transitioning away from fossil fuels. North American sales rose 10 percent to more than 170,000 vehicles, while sales in the rest of the world jumped 55 percent to over 140,000 units.

China’s EV registrations for July came in at roughly one million units, but the world’s largest EV manufacturer, BYD, recorded its third consecutive monthly drop in registrations. The broader Chinese car market also slowed, reflecting the subsidy gap’s impact on consumer demand.

“Despite regional variations, the overall trajectory for EV adoption in 2025 remains strongly upward,” said Charles Lester, data manager at Rho Motion. He noted that China’s sales are expected to rebound from August onwards as fresh government funds are released to restart subsidy programmes.

However, headwinds remain in other markets. In the United States, a reduction in federal tax credits for purchasing or leasing new EVs is set to take effect at the end of September, a change that could weigh on demand in the months ahead.

The July figures underscore both the growing global appetite for electric vehicles and the sensitivity of market growth to policy changes. As governments adjust incentives and subsidies, regional markets are experiencing uneven growth patterns. Nonetheless, the long-term outlook for EV adoption remains robust, driven by technological advancements, expanding charging infrastructure, and global climate targets pushing the transition away from internal combustion engines.