[Edaily Reporter SIN SOO-JUNG ] Global electric vehicle sales rose 9% last month compared to the same month last year, marking the fifth consecutive month of growth. Although sales in China and North America declined, demand in Europe surged significantly thanks to subsidy policies, driving overall market growth.

According to a Reuters report on the 13th citing data from market research firm Benchmark Mineral Intelligence (BMI), global sales of battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs) in July reached 1.85 million units, a 9% increase from the same month last year. Cumulative sales from January through July this year totaled 11.5 million units.

By region, growth in Europe was particularly notable. EV sales in Europe reached 450,000 units, a 33% increase from the same month last year. Consequently, the year-to-date sales growth rate also rose to 28%.

BMI explained that the reintroduction of EV subsidy programs in major European automotive markets over the past 18 months has supported this sales growth. By country, France’s July EV sales surged 81% compared to the same month last year. Germany saw a 46% increase, and the United Kingdom saw a 43% increase.

In contrast, the Chinese and North American markets were sluggish. China’s July EV sales totaled 980,000 units, a 5% decrease compared to the same month last year. Reuters reported that as sales decline in China—the world’s largest EV market—local manufacturers are increasingly turning to overseas exports to drive growth.

EV sales in North America fell even more sharply. July sales totaled 140,000 units, a 27% decrease from the same month last year. Reuters reported that the expiration of the U.S. federal EV tax credit impacted demand in North America.

As the gap between Europe and China and North America widens, trends in major EV markets are diverging sharply. In Europe, subsidies are propping up demand, while in the U.S., the reduction in tax incentives appears to be weighing on sales. China, too, is becoming increasingly reliant on exports as domestic sales decline.

EV sales surged significantly in regions outside the traditional major markets. According to BMI, July sales in regions other than China, Europe, and North America reached 280,000 units, a 97% surge compared to the same month last year. Although the total sales volume remains below that of China and Europe, this region recorded the steepest growth rate.

The July figures demonstrate that the global EV market is not moving in a single direction but is instead diverging based on regional policies and demand conditions. While strong sales growth in Europe offset declines in China and North America, driving up global sales, the pace of growth and the effectiveness of policies varied significantly by region.

In particular, given that sales in Europe rose by 33% while those in China and North America fell by 5% and 27%, respectively, the future growth trajectory of the global EV market is likely to depend on each country’s subsidy and tax policies, as well as whether Chinese manufacturers expand their exports. However, this BMI report did not provide sales figures by manufacturer or the specific breakdown between pure electric vehicles and plug-in hybrids.