Electric cars aren’t slowing down. In August 2025, worldwide EV and hybrid sales surged 15% year-over-year, hitting 1.7 million units in just one month. The U.S. set records ahead of expiring tax credits, while Europe grew steadily and China faced a temporary slowdown.
U.S. Hits Record Highs
American buyers rushed to dealerships in August and September. Why? The federal EV tax credit expired on September 30th. That urgency drove 201,255 sales in the U.S., a new monthly record. Demand is expected to dip slightly this fall, but analysts say it won’t last.
Europe Keeps Gaining Speed
Europe logged 283,453 EV sales in August, powered by aggressive decarbonization goals and new model launches. As countries tighten emissions standards, adoption continues to climb. More affordable EVs arriving in 2026 should push those numbers even higher.
China Cools but Still Dominates
China remains the world’s biggest EV market, accounting for over half of global sales. But growth slowed to just 6% in August, far below the 36% monthly average earlier this year. BYD, the nation’s largest EV maker, even cut its 2025 sales target by 16%.
Still, brands like Xpeng, Nio, and Geely picked up steam, offsetting some of BYD’s dip. Analysts expect growth to rebound in Q4 as new funding becomes available.
Rest of the World Rises Fast
Beyond the big three regions, EV demand is exploding. Sales outside of China, Europe, and the U.S. jumped 56% to 144,280 units in August. That growth signals EV adoption is spreading globally, not just in core markets.
Looking Ahead
BloombergNEF predicts global EV sales could hit 27 million units by 2026. More models, lower costs, and better batteries will fuel the next wave. Any slowdown in the U.S. after tax credits end is likely short-term. The bigger picture? EVs keep charging forward.
