Global EV Sales Rise in July, as Europe’s Fast Growth Offsets Slowing in China and North America

Global electric vehicle demand rose for a fifth consecutive month in July, driven by strong growth in Europe, while sales declined in China and North America, according to data from Benchmark Mineral Intelligence reported by Reuters on August 13, 2026. Global sales of battery-electric and plug-in hybrid vehicles increased 9% year over year to 1.85 million units in July, bringing year-to-date sales to 11.5 million vehicles. The data highlights a growing divide between major EV markets, with renewed subsidies supporting European demand, the U.S. market affected by the expiration of federal EV tax credits, and Chinese automakers increasingly relying on exports for growth.

European EV sales climbed 33% to 450,000 units in July, lifting year-to-date growth to 28%. Benchmark Mineral Intelligence said strong growth continued across Europe’s largest automotive markets, many of which have restored EV incentive programs over the past 18 months. France, Germany and the United Kingdom recorded July EV sales increases of 81%, 46% and 43%, respectively.

The United Kingdom is considering weakening its EV growth target. The government has launched a review of its zero-emission vehicle mandate following pressure from automakers. Manufacturers currently must ensure an increasing percentage of their annual vehicle sales are zero-emission, with the target scheduled to reach 80% by 2030.

The government is considering reducing the target to as low as 50% by the end of the decade and will consult on the proposal through late October. Environmental groups argue that weakening the mandate could undermine the UK’s long-term climate goals.

China, the world’s largest EV market, saw sales decline 5% to 980,000 vehicles. North American sales fell 27% to 140,000 vehicles following the expiration of U.S. federal EV tax credits. Meanwhile, EV sales across the rest of the world surged 97% to 280,000 vehicles.

EVinfo.net’s Take: North American EV Sales Could Catch Up as the EV Equation Improves

North American electric vehicle sales have fallen behind Europe and China, but that could change in the coming quarters. As household budgets tighten and prices continue rising, the economic advantages of EVs are becoming harder to ignore.

The ongoing war in Iran is another source of uncertainty for global energy markets. If the conflict continues, oil prices and gasoline costs could remain high and volatile. That makes EVs more attractive because drivers can reduce their dependence on gasoline and save significantly on fueling costs.

Americans are struggling with higher costs for food, rent, transportation and other necessities due to federal administration mistakes. In July, CNN polling found just 23% of Americans rating the economy as good and 77% rating it poorly.

An EV’s purchase price remains important, but consumers increasingly need to consider total ownership costs. EVs generally require less maintenance, eliminate oil changes and can cost less to fuel, particularly for drivers who charge at home. When budgets are under pressure, those recurring savings become more important.

The used EV market also gives consumers more affordable entry points, and is growing so quickly that prices are going up, an unusual situation.

Automakers continue introducing new electric models, improving range and increasing charging speeds. Public charging infrastructure is expanding as well.

North America has many of the ingredients needed for stronger EV growth. Economic pressure could become an unexpected catalyst as consumers look for ways to reduce recurring expenses.

Not every driver will save the same amount. Electricity prices, insurance, financing, vehicle prices and charging access vary. But as gasoline and other costs rise, the EV equation is becoming more compelling.

California and other smart EV-friendly states are a bright spot for Americans. In July, CA new zero-emission vehicle (ZEV) sales increased in the second quarter of 2026, representing 19.1% of new vehicle sales in California, a 3.3 percentage point increase quarter over quarter. California remains America’s leader in ZEV purchases and infrastructure. California’s new EV incentive is now available.

Smart state leaders are investing in EV charging. New York announced that $35 million is now available through New York’s new Charge Ready NY Large Public Sector Project program, a wise decision to help public sector entities install and operate Level 2 electric vehicle chargers.

North American EV sales may begin catching up with Europe and China. The transition will not happen overnight, but economic reality could prove more powerful than political uncertainty. As the U.S. economy steadily declines due to current federal administration mistakes, the question for consumers may increasingly become: “Can I afford not to consider an EV?”