Global Electric Car Sales Grew 15% YoY in August 2025; China Dominates While US Demand Expected to Contract

UK-based EV and battery supply chain research firm Rho Motion has published a report about global EV sales this year, showing that demand is growing on a global scale. According to the company, 1.7 million electric passenger cars and light-duty commercial vehicles were sold across the world in August 2025, with that figure the sum of 1.16 million battery electric vehicles (BEVs) and 0.57 million plug-in hybrids (PHEVs). This amounts to a 15 percent year-on-year increase, and a 5 percent month-on-month increase.

Predictably, that growth has been uneven, affected by different countries’ government incentives and regulations around pollution regulation. China accounted for the bulk of all sales, outpacing the rest of the world combined. While sales in China grew by 11 percent month-on-month, the 6 percent year-on-year growth is actually slower than before, due to a sales boom at this time last year spurred by trade-in incentives. 

This aligns with numbers released by the China Association of Automobile Manufacturers earlier this week, reporting 1.395 million EVs units sold, including exports, with year-on-year exports doubling. BYD is still the market leader in China in terms of monthly sales, followed by Geely Auto and Tesla China. However, a recent production target cut, which comes amid increasing regulatory pressure on safety and market dynamics, could suggest that sales will cool slightly over the rest of this year. 

The Rho Motion report also says that Europe is a bright spot for EV sales, with Germany, the UK, Spain and Italy registering growth while France saw a decline. While sales in North America are currently high, US performance is attributed to the impending end of an EV purchase tax credit at the end of September, following which sales are expected to drop significantly. Similarly, the ending of incentives for zero-emission vehicles in Canada is credited for relatively weak sales performance.

Year-to-date, the report claims 12.5 million electric cars and light-duty commercial vehicles  have been sold around the world, which is a 25 percent increase over 2024 sales for the equivalent period. China accounts for 7.6 million of those vehicles, with Europe coming in at 2.6 million and North America only 1.3 million. The rest of the world combined, including India, accounts for only 1 million EV sales, but this is a 44 percent increase, showing where major growth is likely to come from in the near future.

The report does not count electric scooters and bikes or heavy-duty commercial vehicles.