Rho Motion: Global EV Sales Surge 21% Year-on-Year in July, But Growth Slows

According to Reuters, on August 13, market research firm Rho Motion reported that in July this year, global electric vehicle sales (including pure electric and plug-in hybrid vehicles) increased by 21% year-on-year to 1.6 million units. However, despite this, it remains the lowest growth rate since January this year, slowing from the 24% year-on-year increase in June. This slowdown trend is mainly influenced by the weakening growth momentum in the Chinese plug-in hybrid vehicle market.

Image source: BYD

As the largest automobile market in the world, China accounts for more than half of global electric vehicle sales. However, in July, overall car sales growth in China slowed down, and the registrations for BYD, the world's largest electric vehicle manufacturer, declined for the third consecutive month.

Charles Lester, Data Manager at Rho Motion, pointed out that the growth rate of electric vehicle sales in the Chinese market slowed from a monthly average of 36% in the first half of this year to 12% in July. This slowdown is due to the previously booming market being affected by the suspension of certain government subsidies for the purchase of electric vehicles and plug-in hybrid vehicles in 2025.

However, the overall growth rate of global electric vehicle sales in July slowed down moderately, indicating that other markets are filling some of the gaps. Among them, the European market benefited from incentive policies aimed at accelerating decarbonization, resulting in a significant increase in electric vehicle sales.

Specifically, in July this year, electric vehicle sales in the Chinese market were approximately 1 million units; electric vehicle sales in the European market surged 48% year-on-year to about 390,000 units; electric vehicle sales in the North American market increased 10% year-on-year to 170,000 units; and electric vehicle sales in other regions of the world jumped 55% year-on-year, exceeding 140,000 units.

Charles Lester stated, "Despite regional differences, the overall trend of electric vehicle adoption in 2025 remains on a strong upward trajectory."

Meanwhile, Charles Lester added that with new subsidy funds in place, sales of electric vehicles in the Chinese market are expected to resume strong growth starting from August this year. However, at the end of September this year, the United States will reduce tax credits for purchasing or leasing new electric vehicles, which will deal a blow to demand in the country.