China slows global growth in the electric vehicle market, while Europe surges: +48% sales

What happened

Global sales of electric vehicles (BEV+PHEV) in August reached about 1.7 million cars, but annual growth rates slowed to 15% (against 21% in July). The most striking contrast is Europe added 48% y/y (approx. 283 ths. cars per month), while China showed significantly lower dynamics against the «high base» of the previous year. The data is provided by the analytical company Rho Motion.

Key figures by region (August)

• Europe: +48% y/y, approx. 283 453 registrations.
• China: about 1.1 million of electric vehicles per month; growth slowed due to the effect of last year's subsidies and the boom in demand during that period.
• North America: +13% y/y, approx. 201 255 car.
• The world in general: 1.7 million auto, +15% p/r.

Why China has slowed down

Analysts explain the slower pace high base effectLast year, August in China was fuelled by benefits and a price war, which led to a sharp jump in demand - now the comparison to such a peak naturally «dampens» interest. Bottom line. The dynamics have slowed down, although absolute volumes remain a record for the world.

The longer-term outlook is still positive: in January-August 2025, Europe grew by 31%, China - by 25%; globally +25%. This indicates a steady recovery in demand beyond the monthly «noise». Rho Motion

Why Europe has accelerated

The European market is supported by stricter CO₂ regulations, a wider range of models and local incentives. In August, this translated into almost half a million additional registrations to last year's level in just one month +48%.

Implications for the market

• Levelling the playing field in China reduces the «skewness» of global statistics, making the global picture more balanced. At the same time, China retains the status of the largest EV market.
• Europe is rapidly increasing its share and could become a key driver of global demand at the end of the year if the pace continues. According to Rho Motion, the YTD dynamics in the region are also high.

What's next

Analysts expect fluctuations in monthly statistics due to changes in incentives, pricing and regulatory innovations. Strategically, the market is moving upwards: leading research groups predict increase in global EV sales in 2025 compared to 2024, despite regional differences in pace.