Electric car sales slow down worldwide

Global electric vehicle sales grew 21% year-over-year in July, the slowest pace since January and below the 25% recorded in June, according to consultancy firm Rho Motion. The slowdown was primarily due to lower demand for these vehicles in China, the world's largest automotive market, where more than half of global zero-emission vehicle registrations are concentrated.

In July, overall car sales in China also moderated. BYD, the world's largest electric vehicle manufacturer, recorded its third consecutive month of falling sales.

However, the decline in the Asian giant was partly offset by growth in other markets, especially Europe, where incentives to accelerate decarbonization boosted registrations.

In absolute terms, global sales of pure electric and plug-in hybrid vehicles reached 1.6 million units in July. China added nearly one million vehicles, but its monthly growth, which averaged 36% in the first half of the year, slowed to 12% due to the suspension of some government aid planned for 2025.

Europe saw a 48% increase, reaching around 390,000 vehicles, while North American sales grew 10%, surpassing 170,000 units. The rest of the world saw a 55% increase, with more than 140,000 vehicles sold.

According to Charles Lester, Head of Data at Rho Motion, "Despite regional differences, the global trajectory of electric vehicle adoption through 2025 remains clearly upward."

Sales in China are forecast to rebound starting in August with the reactivation of funding for its subsidy programs. In contrast, a negative impact is expected in the United States starting in late September, when the tax credits for the purchase of new electric vehicles, which amount to $7,500, are reduced.