The global electric vehicle market expanded 15% year-on-year in August, but the growth masked a sharp slowdown in China and a remarkable surge by smaller automakers.
China, which accounts for more than half of global EV sales, saw growth ease to just 6%—its weakest in months. The slowdown coincided with the expiry of subsidy support, though analysts expect a rebound in the fourth quarter when new funds are rolled out.
Industry heavyweight BYD, the world’s largest EV manufacturer, cut its 2025 global sales target by as much as 16%. The move reflects rising competition and slowing demand in its home market.
Meanwhile, smaller rivals such as Geely, Xpeng, and Nio posted record monthly sales in August. Analysts say their success underscores a shift in consumer preferences, with buyers increasingly turning to emerging brands that offer competitive technology and pricing.
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Globally, 1.7 million EVs and plug-in hybrids were sold in August. Chinese sales accounted for 1.1 million, while Europe saw a 48% surge to nearly 283,500 units. North America grew 13% to 201,000 vehicles, and the rest of the world recorded a 56% jump to over 144,000.
In the U.S., sales were boosted by expiring tax credits, while Europe’s growth came from green policies designed to accelerate decarbonisation.
Rho Motion’s Charles Lester noted that global momentum remains positive despite China’s slowdown. “We’re seeing record sales in the U.S. and Europe. In China, smaller players are finding new opportunities even as BYD feels the squeeze,” he said.
The August data reflects both challenges and opportunities in the EV industry, as established giants recalibrate and newcomers gain traction in an increasingly competitive global market.
