Global EV demand rises again as Europe offsets China, U.S. weakness

• Europe recorded its highest-ever June EV registrations at approximately 530,000 units (up 31%), establishing itself as the main engine of global EV growth
• China registrations fell 11% to around 1 million vehicles while North America dropped 13% following the termination of U.S. EV tax credits
• First-half 2025 global EV volumes rose just 2% year-over-year, with Chinese automakers increasingly targeting overseas markets amid weaker domestic demand

Global EV Demand Rises on European Strength Despite China, U.S. Weakness

Key Findings:

Global electric vehicle demand increased for the fourth consecutive month in June 2025, rising 7% year-over-year to 2 million units for battery-electric and plug-in hybrid vehicles combined, according to Benchmark Mineral Intelligence. First-half 2025 volumes grew 2% overall.

Regional Performance:

• Europe: EV registrations surged 31% to approximately 530,000 units, setting a June record. BMI identifies Europe as the primary engine driving global EV growth.

• China: Registrations declined 11% to around 1 million vehicles, reflecting weakening domestic demand.

• North America: Registrations fell 13% following the elimination of U.S. EV tax credits, significantly impacting sales momentum.

Market Implications:

The divergent regional trends highlight Europe's increasingly critical role in sustaining global EV adoption amid softening demand in the world's two largest automotive markets. The end of U.S. tax incentives has demonstrably dampened North American sales, while China's slowdown suggests market saturation or economic headwinds.

Chinese automakers are responding to domestic weakness by accelerating overseas expansion, potentially intensifying competition in European and other international markets. This strategic shift could pressure established European and American manufacturers.

Strategic Takeaway:

Investors should monitor Europe's regulatory environment and incentive programs, as the region has become the pivotal growth driver for the EV sector. The sustainability of European demand and Chinese manufacturers' international expansion strategies will likely determine near-term industry dynamics and competitive positioning among global automakers.