Global sales of electric vehicles (EVs) and plug-in hybrids grew 15% in August compared to last year, the slowest monthly growth since January, according to market research firm Rho Motion. The decline highlights tougher year-on-year comparisons and China’s cooling demand.
China, the largest EV market in world, saw growth drop to just 6% in August. The slowdown comes after a strong first half of 2025, when monthly growth averaged 36%. Analysts attribute the dip to subsidy exhaustion, with sales expected to pick up later this year as new funds are released and seasonal demand returns.
Despite the slowdown, China remains dominant, accounting for 1.1 million sales out of the global 1.7 million in August. Meanwhile, Europe reported a 48% rise, selling about 283,000 units, while North America posted a 13% increase with more than 201,000 vehicles. Sales in the rest of the world surged 56% to over 144,000.
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China’s BYD, the world’s largest EV maker, recently cut its 2025 sales target by up to 16%, reflecting competitive pressure and weaker growth. Yet smaller Chinese automakers, including Geely, Xpeng, and Nio, recorded their best-ever month in August, capturing market share.
In the U.S., sales have been boosted by buyers rushing to take advantage of expiring tax credits. Europe’s momentum, meanwhile, is supported by decarbonisation incentives.
Rho Motion’s Charles Lester said August numbers confirm shifting dynamics: “BYD still has the market share, but it’s now feeling pressure from other manufacturers. In the U.S., we expect record-breaking sales before a likely dip in October.”