August was a good month for global electric vehicle sales, except in Europe.
According to the monthly sales report from market research firm Rho Motion, sales of fully electric and plug-in hybrid vehicles worldwide increased by 20% year-over-year in August. This is consistent with July's 21% jump and the 20% growth seen in the first six months of the year. Despite the European slowdown, particularly in Germany, strong Chinese sales and exports are maintaining high overall growth.
As previously reported, China's record-breaking sales of over 1 million units in August more than offset a 33% decline in European sales. In fact, August marked the weakest European sales since January 2023.
Globally, EV sales (BEVs and PHEVs combined) reached 1.47 million units in August. While China saw a 42% increase (up from 31% in July), the United States and Canada experienced a modest 8% growth to 160,000 units.
Year-to-date, European sales have dropped by 4%, primarily due to a 23% decline in Germany following the late-2023 subsidy cut. This government decision, aimed at reducing spending, negatively impacted the car industry. In response to the sharp decline, Germany recently reversed the cut and implemented tax deductions of up to 40% for electric car sales. This measure will provide significant support to struggling automakers like Volkswagen.
Rho Motion forecasts China's EV sales, the world's largest market, to increase by one-third to 10.5 million vehicles this year, while European sales are expected to remain relatively flat at around 3.1 million units. For the first eight months of 2024, global sales of BEVs and PHEVs have grown by over 22% to 9.9 million units.
