Europe’s EV Sales Soar as North America Drops 44%

Electric vehicle sales in Europe reached a record high in September, contrasting sharply with a steep decline in North America as global market dynamics shift. According to data from Benchmark Mineral Intelligence, nearly 600,000 EVs were sold in Europe last month, marking a 39% increase year-over-year.

What Happened

European EV sales in September surpassed the previous monthly record set in June by 10%. Battery electric vehicles (BEVs) drove the majority of this growth, with sales jumping 50% year-over-year, while plug-in hybrid electric vehicle (PHEV) sales rose by 16%. The UK, France, Spain, Portugal, and Finland all reported their highest monthly EV sales ever. France’s sales climbed 78% to nearly 80,000 units, and Germany’s increased by 61% to 117,000 units. In the UK, sales were more than 3.5 times August’s total, a surge attributed to the seasonal boost provided by September’s new registration plates. Across the region, sales rose 62% month-over-month as buyers returned following the summer slowdown.

In contrast, North American EV sales fell 44% year-over-year to approximately 130,000 units, representing the region’s steepest percentage decline in 2026. Sales also decreased by 8% from August. Through September, North American EV sales totaled 1.2 million, down 24% from the same period last year.

Global EV sales reached 2.15 million in September, up 17% from August but down 2% from September 2025. Year-to-date global sales stand at 15.5 million, a 3% increase over last year. China remains the largest market with 1.11 million units sold in September, though this figure represents an 18% year-over-year decline. Chinese automakers have increased exports to offset domestic weakness, with new energy vehicle exports reaching a monthly record of 558,000 units.

Why It Matters

The 44% drop in North American sales requires context, as September 2025 was the final month before the expiration of the US federal $7,500 EV tax credit, which prompted a rush of purchases. Benchmark’s data manager, Charles Lester, noted that future year-on-year comparisons will be against months immediately following the credit’s removal, when US sales collapsed, suggesting the percentage declines may appear less severe in the fourth quarter even if demand does not fully recover. This highlights that the current North American slowdown is partly a statistical artifact of previous policy incentives rather than solely a new collapse in consumer interest.

Meanwhile, Chinese manufacturers are increasingly looking overseas, with exports accounting for significant growth. However, this strategy faces potential headwinds from upcoming policy changes. An EU–China agreement, pending member-state approval, would cap imports of Chinese-built BEVs and PHEVs at 350,000 units in 2027, with a 6% annual increase thereafter. Additionally, China plans to reduce the export VAT rebate for new energy vehicles from 13% to 9% starting April 1, 2027, which could impact the competitiveness of Chinese exports.

The Bottom Line

Europe’s EV market is experiencing robust growth, driven by strong BEV adoption and seasonal factors, while North America struggles with a significant year-over-year decline influenced by the expiration of tax incentives. Global sales growth is increasingly supported by Europe and other international markets, as China shifts focus to exports despite domestic sales falling 13% year-to-date.