Worldwide electric vehicle (EV) sales are booming, with a 23% increase in October, driven by strong demand in Europe and China. This growth contrasts sharply with the U.S. market, which experienced a significant collapse following the abrupt end of federal EV tax credits. The diverging trends highlight the critical role of government incentives in accelerating EV adoption, and the broader global momentum towards electric mobility.
Global Growth: A Tale of Two Regions
According to data from Rho Motion, an estimated 1.9 million electric and plug-in hybrid vehicles were sold globally last month. While slightly lower than September’s 2.1 million, the year-over-year growth remains robust. China leads the way with 1.3 million units sold, up 6% from last year. Europe follows closely, with a 36% jump in deliveries to 372,786 units, including a 32% increase in battery-electric vehicles (BEVs) and a 47% surge in plug-in hybrid electric vehicles (PHEVs).
Year-to-date figures further illustrate the trend:
- Global: 16.5 million (+23%)
- China: 10.3 million (+22%)
- Europe: 3.4 million (+32%)
- Rest of World: 1.3 million (+48%)
Strong growth is evident across key European markets. Germany has seen a 45% increase in EV sales year-to-date, while the UK is up 31%. Spain has more than doubled its tally, and Italy matches Germany’s pace. France remains slightly in the red, but the overall European momentum is undeniable.
U.S. Market Collapse: The Incentive Effect
North America stands in stark contrast, with sales plummeting 41% to 100,370 units. This collapse follows the abrupt removal of the federal EV tax credit, which previously offered up to $7,500 in incentives. The market had surged in August and September as buyers rushed to secure credits before the cutoff.
The impact on individual brands has been severe:
- Ford: BEV sales down 60%
- Hyundai: Plunged 77%
- Kia: Dropped 77%
- Honda: Fell 83%
- Subaru: Nearly vanished, down 97%
Canada has also experienced sluggish sales, weighed down by reduced purchase incentives and the government’s pause on the 2026 EV mandate. This demonstrates the power of financial incentives in driving EV adoption.
Market Outlook: Continued Growth in Europe and China
Rho Motion data manager Charles Lester expects the European and Chinese markets to remain strong through the end of the year. Europe’s high year-to-date growth suggests continued momentum. China’s market should also remain robust, aided by a transition from full purchase tax exemption to a 50% exemption.
The U.S. market, however, faces an uncertain future without federal incentives. The diverging trends underscore the critical role of government policy in shaping the global EV landscape.
The global EV market is clearly accelerating, but its trajectory is heavily influenced by regional policies. The U.S. experience serves as a cautionary tale, while Europe and China continue to lead the way with supportive incentives and growing consumer demand
