Strong Global EV Sales in August Despite Big EU Slump

Global sales of electric vehicles (EVs) and plug-in hybrid vehicles rose by 20% in August over last year – a significant rise considering sales of EVs dropped by 33% to its weakest month since January 2023.

Market research firm Rho Motion said on Thursday it expects this year’s sales in China, the world’s largest EV market, to rise by one third from last year to 10.5 million vehicles.

And the group sees European sales roughly in line with last year’s 3.1 million units, data manager Charles Lester said.

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Demand for electric cars has cooled in recent months after rising dramatically for several years, as consumers wait for more affordable models or opt for hybrid alternatives. That caused several leading carmakers to scale back on their electrification plans.

Worldwide sales of EVs – whether fully electric (BEV) or plug-in hybrids (PHEVs) – reached 1.47 million in August, Rho Motion data showed.

Sales in China jumped 42% in August and reached a record high of over one million vehicles, while in the United States and Canada sales were up 8% to 0.16 million units.

Year-to-date sales in Europe dropped by 4%, weighed down by a 23% decrease in Germany after a cut of subsidies, Rho Motion said.

Increased subsidies in China for drivers trading in more polluting vehicles helped drive the EV sales jump in August, Rho Motion’s Lester said.

“Seasonal vehicle sales in China are strong towards the end of the year,” he added.

The German government agreed on September 4 to tax deductions of up to 40% for companies on their sales of electric cars, after last year abruptly ending a subsidy programme designed to help speed up the green transition.