Global EV Sales Growth Slows to 21% in July as China Pauses Subsidies originally appeared on Autoblog.
July’s electric vehicle sales numbers brought a reality check for the industry. According to research firm Rho Motion, global deliveries of plug-in cars — both full battery electrics and plug-in hybrids — rose 21% year-over-year. That’s still solid, but it’s also the slowest growth rate since January, down from June’s 25%. Roughly 1.6 million plug-in vehicles found homes worldwide last month.
The biggest drag was China, which typically accounts for over half of all global EV sales but saw growth slip to just 12% as subsidies for plug-in hybrids were paused. For buyers considering a new electric car, the numbers highlight how quickly policy changes can ripple through the market.
China Cools While Europe Heats Up
The loss of incentives in China hit PHEVs especially hard, leaving battery-electric models to carry more of the load. Europe, meanwhile, surged ahead with a 48% year-on-year jump to around 390,000 units. That’s partly thanks to new decarbonisation incentives rolling out across EU member states.
In the U.S., EV deliveries were up a more modest 10% to just over 170,000 units. It’s the same market where Tesla’s once-iron grip is loosening, as more manufacturers offer competitive EVs and inventory levels improve. Other regions posted even bigger percentage gains — over 55% growth outside the top three markets — but from much smaller starting volumes.
The Tesla Trouble in Europe
In Europe, the overall EV market is booming — but not for everyone. Tesla’s sales have slumped sharply even as competitors like BYD, Volkswagen, and BMW see year-over-year increases.
Analysts say Tesla’s lack of fresh product in key segments, along with increased tariffs on imports from China, has hurt its momentum. The shift is important because Europe’s EV growth is currently the strongest of any major region, meaning losing share there could sting more than in slower-growth markets like North America.
What’s Next for the Global EV Market
Rho Motion expects China’s numbers to rebound in August as subsidies return, but warns that the U.S. could soon see its own dip. Federal EV tax credits are set to expire for many models at the end of September, which may bring a short-term sales rush followed by a slump. Europe, anchored by policy-driven incentives and surging competition, looks set to maintain its upward trend for now.
The takeaway is clear: EV sales are still growing strongly in absolute terms, but the rate of that growth is increasingly dictated by the ebb and flow of government support. For buyers and automakers alike, the challenge is staying ahead of those policy swings before they hit the showroom floor.
Global EV Sales Growth Slows to 21% in July as China Pauses Subsidies first appeared on Autoblog on Aug 15, 2025
This story was originally reported by Autoblog on Aug 15, 2025, where it first appeared.
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