Sluggish growth observed in electric vehicle sales, reaching 21% in July, according to a research release
Global electric vehicle (EV) sales experienced a slight slowdown in July 2025, with a 9% decline month-on-month compared to June 2025. Despite this short-term deceleration, the sales still showed a 21% increase compared to July 2024.
This slowdown was influenced by regional variations and specific market dynamics such as policy headwinds and incentives timing. China, while still leading the global EV market and maintaining more than 50% EV penetration, experienced weaker sales month-on-month in July 2025 but remained the largest contributor to global EV sales.
According to data from Rho Motion, a market research firm, global EV sales in July 2025 reached 1.6 million units, marking a 21% increase year-on-year but 9% lower than in June 2025. China continued to lead globally, contributing 6.5 million EVs sold in the first seven months of 2025—29% growth compared to 2024.
The reasons for the slower growth are partly due to regional market conditions. North America showed muted growth with policy uncertainties affecting demand, and while Europe’s momentum remained strong, some countries still faced sluggishness. The dip from June to July could also be caused by normal market cycle variations or timing of incentives and subsidies.
Despite the July slowdown, China’s EV sales performance showcased a strong structural adoption basis, with its EV penetration rate remaining above 50%. Chinese car sales are expected to return to strong growth from August as new funds become available for subsidy schemes.
Elsewhere in the world, sales in the rest of the world jumped 55% to over 140,000 electric vehicles in July. European EV sales surged 48% to approximately 390,000 units in July, benefiting from incentives aimed at speeding up decarbonization. North American EV sales climbed 10% to over 170,000 units in July.
Rho Motion's data manager Charles Lester stated that the overall trajectory for EV adoption in 2025 remains strongly upward, despite the short-term deceleration in July. However, a cut in US tax credits for buying or leasing new EVs at the end of September is expected to hurt demand in North America.
It's worth noting that Rho Motion's data includes sales of both battery-electric vehicles and plug-in hybrids. BYD, the world's largest EV maker, recorded its third monthly drop in registrations in July.
In summary, July 2025 saw a moderation in growth compared to June, with China still firmly dominating EV sales globally though experiencing a slight monthly dip. The overall trend for 2025 remains strongly positive despite this short-term deceleration.
- The slowdown in global electric vehicle (EV) sales, observed in July 2025, was influenced by factors such as policy headwinds and incentives timing in certain regions.
- Despite the 9% decline month-on-month in July 2025, global EV sales still showed a significant 21% increase compared to July 2024.
- China, despite experiencing weaker sales in July 2025, continues to lead the global EV market and is expected to see a resurgence in growth from August.
- North American EV sales showed muted growth in July 2025 due to policy uncertainties affecting demand, while European EV sales surged due to incentives aimed at speeding up decarbonization.
- The overall trajectory for EV adoption in 2025, as reported by Rho Motion, remains strongly upward, but a potential hurdle for North America is the upcoming cut in US tax credits for buying or leasing new EVs at the end of September.
