According to Rho Motion, global electric vehicle (EV) sales rose by 21% year-on-year in July—the slowest pace since January—down from 25% in June. This deceleration was primarily triggered by a decline in China’s plug-in hybrid sales, stemming from a temporary pause in government subsidies. China, responsible for over half of global EV sales, reported just 12% year-on-year growth—a steep drop from the 36% monthly average recorded earlier in the year.

Despite the slowdown in China, Europe experienced a robust 48% increase to 390,000 units, and North American sales rose 10% to over 170,000 units. The rest of the world also saw a strong uptick of 55%, exceeding 140,000 units. Rho Motion expects Chinese sales to pick up again in August and cautions about a potential dip in U.S. demand once federal tax credits are reduced in late September—but remains optimistic about long-term EV adoption trends