Global EV Sales Growth Rising Despite Sluggish Q2 Numbers

New data from research firm Rho Motion reveals that EV sales globally slowed in the second quarter of the year, with. automakers selling 1.6 million EVs in July, which is a 9% decline from May. However, overall numbers are up 27% for 2025.

Overall, EV producers have sold 10.7 million vehicles through the first seven months of the year, with Europe and China leading the way. Unsurprisingly, North American sales — the U.S. and Canada — are up just 2%, the smallest increase among the regions tracked by the firm. To be clear, Rho Motion counts plug-in hybrids (PHEV) as electric vehicles.

“Global EV sales passed 10.7 million in the first seven months of 2025, showing a robust 27% increase year-to-date. China continues to lead the global market and maintains EV penetration rates over 50% despite weaker sales month-on-month,” said Charles Lester, Rho Motion’s data manager, in a release.

“Europe’s momentum is also impressive, with markets like Germany and the UK surging ahead, although France remains sluggish despite new subsidy plans. Italy is emerging as a fast-growing player thanks to fresh incentives.”

Tariff effect

The stagnation of North American sales isn’t a big surprise as EV sales have been slowing for the better part of the last 18 months. There was a small burst in the first quarter as buyers looked to beat the implementation of tariffs by the Trump administration.

However, with tariffs fully in place as well as several other headwinds facing the industry, the most prominent being the ending of EV tax credits on Sept. 30 in the U.S., EVs are now in a sink-or-swim position.

“We expect a short-term lift in U.S. demand ahead of the IRA consumer tax credit deadline in September, followed by a likely dip,” Lester noted. “Despite regional variations, the overall trajectory for EV adoption in 2025 remains strongly upward.”

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Europeans buying

While most believe that China is leading the way in EV sales — and it is on a volume basis — Europe showed the biggest material increase during the first seven months of the year with a 30% jump in sales. That rise translated to 2.3 million EVs sold during the period.

Performance remains mixed in the European market with Germany and the UK leading the growth at 43% and 32%, respectively. France, despite a 9% year-on-year gain in July, remains down 11% year-to-date. To stimulate demand, the French government will relaunch its EV leasing scheme for low-income households on Sept. 30, expected to support just over 50,000 purchases.

Italy has seen a massive uptick as well, rising 40% through July, pushing the total market to 11%. By contrast, Germany’s at 27% and the UK is at 30%. Of course, no one can compare to Norway and its commitment to EVs, which now surpasses 95%.

The leader

The Chinese market continues to show impressive growth in 2025, but not between June and July where EV sales — surprisingly — fell 12%. However, July on a year-over-year basis was up 12% and the country is up 29% overall through the first seven months of this year.

Battery-electric vehicles (BEVs) continue to outpace plug-in hybrids, with BEV sales up 40% year-to-date compared to 14% for PHEVs. Domestic PHEV sales declined both month-on-month (-15%) and year-on-year (-10%), Rho Motion noted.

Despite the slowdown, overall passenger car sales also fell, and EV penetration has remained above 50% for the third consecutive month.

In late July, the Chinese government allocated its Q3 funding for the consumer goods trade-in scheme, which has supported EV demand since its launch last year. The final round of funding for 2025 is expected in October.