Global sales of electric vehicles (EVs) increased for the fifth consecutive month in July, with strong growth in Europe offsetting declines in China and North America, according to data from consultancy Benchmark Mineral Intelligence (BMI).

Sales of battery-electric and plug-in hybrid vehicles rose 9% year on year to 1.85 million units in July, bringing global sales for the first seven months of the year to approximately 11.5 million vehicles.

The latest figures highlight an increasingly divergent picture across the world's major EV markets, with European demand benefiting from renewed government incentives while sales in China and North America weakened.

Europe Leads Global EV Growth

Europe recorded the strongest growth among the major markets, with EV sales climbing 33% year on year to 450,000 units in July. Cumulative sales for the region were up 28% compared with the same period last year.

BMI attributed much of the momentum to the return of EV subsidy programs across several major European automotive markets during the past 18 months.

Among Europe's largest markets, France recorded an 81% increase in EV sales in July, while sales rose 46% in Germany and 43% in Britain.

The figures indicate that renewed government support and incentives are helping accelerate the transition toward electric mobility across the continent.

China Sees Sales Decline

China remained the world's largest EV market but recorded a 5% year-on-year decline, with sales falling to approximately 980,000 vehicles in July.

The slowdown comes as Chinese automakers increasingly look toward overseas markets to sustain growth amid intensifying competition and changing domestic market conditions.

Despite the monthly decline, China continues to account for the largest share of global EV sales.

North American Market Contracts

North America experienced a sharper downturn, with EV sales falling 27% to around 140,000 units in July.

BMI linked the decline primarily to the end of U.S. federal tax credits for electric vehicles, which has weakened consumer incentives and contributed to softer demand.

The contraction stands in marked contrast to Europe's acceleration and underscores the significant influence of government policies on EV adoption.

Sales Surge in Other Markets

Outside the three major markets, EV sales increased dramatically. Sales across the rest of the world surged 97% to approximately 280,000 vehicles in July.

The increase suggests that electric vehicle adoption is expanding beyond the traditional centers of the global EV industry, although the overall volumes remain considerably smaller than those recorded in China and Europe.

Global EV Market Continues to Expand

Despite contrasting regional trends, the fifth consecutive monthly increase in global EV sales points to continued underlying growth in demand for electric and plug-in hybrid vehicles.

Europe's rapid expansion and the sharp increase in sales across emerging markets are helping compensate for weakness in China and North America.

The July figures also demonstrate how government subsidies, tax incentives, trade policies and international competition are increasingly shaping the global electric vehicle market as automakers and consumers adjust to rapidly changing market conditions. (ILKHA)