Global demand for electric vehicles rose for a fifth consecutive month in July, with a strong recovery in Europe more than offsetting weaker sales in China and North America, according to data from Benchmark Mineral Intelligence.
Sales of battery-electric and plug-in hybrid vehicles increased 9% from a year earlier to 1.85 million units in July, taking global sales for the first seven months of the year to 11.5 million vehicles.
The figures point to a widening divergence across the world’s major electric-vehicle markets. Europe has emerged as a key source of growth as government incentives support consumer demand, while sales in North America have weakened following the removal of U.S. federal EV tax credits. China’s market, meanwhile, has contracted as domestic manufacturers increasingly look overseas to sustain growth.
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Europe recorded the strongest performance among the major markets in July, with sales climbing 33% to 450,000 vehicles. Year-to-date sales in the region were up 28%.
“High growth persisted in Europe’s larger automotive markets, many of which have experienced a return of an EV subsidy scheme over the past 18 months,” Benchmark Mineral Intelligence said.
France, Germany and Britain all recorded substantial increases in July. EV sales rose 81% in France, 46% in Germany and 43% in Britain compared with the same month a year earlier.
The European acceleration marks a notable shift in the global EV market. After a period of slower growth and uncertainty over consumer incentives, several major European economies have reinstated or expanded support for electric vehicles, helping reduce the upfront cost for buyers and strengthening demand.
China remained the world’s largest EV market but recorded a 5% decline in July, with sales falling to 980,000 vehicles. The slowdown in China is significant because the country has been the principal engine of global EV growth for much of the past decade. Chinese automakers have expanded rapidly through aggressive pricing, extensive domestic production, and a growing range of battery-powered models.
With domestic demand weakening, Chinese manufacturers are increasingly looking to international markets for additional growth. That shift is intensifying competition for established automakers in Europe and other regions, where Chinese EV brands are expanding their presence.
North America posted the sharpest decline among the major markets tracked by BMI. Sales fell 27% to 140,000 vehicles following the end of U.S. federal tax credits for electric-vehicle purchases.
The decline denotes the influence of government policy on EV adoption. While automakers have invested heavily in electric models and battery production, consumer demand remains sensitive to purchase incentives, vehicle prices, and charging infrastructure.
The United States has also faced slower EV adoption than some manufacturers had anticipated, prompting several automakers to reassess the pace of their electric-vehicle investments and product rollouts.
The weakness in China and North America was offset in part by a surge across other markets. EV sales in the rest of the world jumped 97% to 280,000 vehicles in July, indicating that adoption is spreading beyond the traditional centers of the global electric-vehicle industry. The contrasting regional trends are reshaping the competitive landscape for automakers and battery manufacturers.
Europe’s growth provides manufacturers with an expanding market at a time when demand in China is becoming more difficult to sustain at previous rates and U.S. policy has become less supportive. At the same time, the growing export push by Chinese automakers is likely to increase competition in markets where consumers are benefiting from a broader selection of lower-priced electric vehicles.
The global figures also show that the EV transition remains intact even as its pace varies sharply by region. July marked the fifth consecutive month of year-on-year global sales growth, with 1.85 million battery-electric and plug-in hybrid vehicles sold worldwide.
The challenge for automakers is becoming regional rather than simply global. Companies must navigate different subsidy regimes, consumer preferences, trade policies and competitive conditions while managing large investments in electric-vehicle manufacturing and battery supply chains.
Europe’s strong July performance suggests that incentives remain an effective demand lever, while the decline in North America demonstrates how quickly sales can weaken when those incentives disappear. China’s contraction, meanwhile, signals that the world’s largest EV market may be entering a more competitive phase in which manufacturers increasingly depend on exports to maintain growth.
With global EV sales already reaching 11.5 million units in the first seven months of the year, the industry continues to expand, but the latest data show that the next stage of the transition will be defined by different trajectories across individual markets.