Global sales of all-electric and plug-in hybrid vehicles rose 15 percent in August compared with the same month last year, the slowest increase since January and a reflection of stronger comparisons, market research firm Rho Motion said on Friday.
China’s EV sales growth, which averaged 36 percent per month in the first half of the year, slowed to 6 percent in August. However, China’s sales are expected to remain strong in the fourth quarter as new subsidy funds become available and normal seasonal growth is expected, said Charles Lester, data manager at Rho Motion, according to Reuters.
China is the world’s largest auto market and accounts for more than half of global EV sales, which Rho Motion said includes both battery electric vehicles and plug-in hybrids. Overall auto sales growth in China slowed to a seven-month low in August. The world’s largest EV maker, BYD, last week cut its 2025 global sales target by 16 percent.
However, August was the best month yet for EV and hybrid sales for Geely, Xpeng, and Nio, suggesting that smaller local competitors are increasingly taking market share in China. Growth in other markets has partly offset weakness in China. Demand in the US has picked up as tax credits expire, while in Europe, growth has been fueled by incentives to accelerate decarbonisation.
Global sales of battery electric vehicles and plug-in hybrids rose to 1.7 million units in August, data from Rho Motion showed. In the same months last year, the growth was fueled by subsidies in China.
The growth rate fell to 21 percent in July. Chinese sales reached 1.1 million vehicles. Sales in Europe rose 48 percent to about 283,453 cars, while sales in North America rose 13 percent to 201,255 vehicles. Sales in the rest of the world increased by 56 percent to more than 144,280 vehicles.
“In the US, we expect record sales in August, followed by another strong month in September; it could be another record, then probably a big drop. BYD still has the largest market share, and they are certainly feeling the pressure from other manufacturers,” Lester said.