Global EV Sales Fall 2% in September as Europe’s Record Demand Fails to Offset...

Global electric vehicle sales fell 2% in September, ending six consecutive months of growth as record demand in Europe failed to offset sharp declines in China and North America, according to data from UK-based research firm Benchmark Mineral Intelligence (BMI).

The decline highlights widening differences across the world's major electric vehicle markets, with consumer demand and policy support driving growth in Europe while China's domestic market weakens and North America continues to face the consequences of the expiration of US federal electric vehicle tax credits.

Global EV sales fell to 2.15 million vehicles in September, although cumulative sales for the first nine months of the year rose 3% to 15.5 million units. The contrast suggests the global market is still expanding year to date, but momentum has weakened as regional incentives, consumer purchasing patterns, and market conditions diverge.

Europe delivered its strongest month on record, selling almost 600,000 electric vehicles in September, 10% above its previous high recorded in June.

"Europe had its strongest month on record, with almost 600,000 EVs sold in September, 10% above the previous high set in June," said Charles Lester, BMI's data manager.

The European performance demonstrates that demand for electric vehicles can remain strong where consumers have sufficient incentives to switch from conventional cars, and manufacturers offer models that match local purchasing preferences. However, the region's record sales were not enough to compensate for the scale of the declines elsewhere.

North America Faces Tax-Credit Hangover as China Weakens

North American EV sales plunged 44% in September, marking the steepest monthly decline this year. The drop partly reflects an unusually strong comparison period in September 2025, when buyers rushed to dealerships before US federal EV tax credits expired at the end of that month.

The expiration brought forward purchases that might otherwise have occurred later, creating a temporary surge in sales before a subsequent slowdown. As a result, September's year-on-year decline reflects both weaker underlying demand and the distortion created by the previous year's purchasing rush.

Lester said these comparisons should become less severe from the fourth quarter as the market begins to measure sales against the post-tax-credit slowdown rather than the unusually strong period immediately before the incentives ended.

That expected easing in comparisons could make the headline figures appear healthier, but it would not necessarily indicate a full recovery in consumer demand. Without the former federal tax credits, buyers face different purchase economics, potentially increasing the importance of vehicle pricing, financing costs, charging access, and manufacturer discounts in determining sales.

For automakers, the change also complicates production and inventory planning. Companies that expanded capacity in anticipation of stronger EV adoption must now adjust to a market in which demand is more sensitive to affordability and government support.

China, the world's largest electric vehicle market, recorded an 18% decline in September sales to 1.11 million vehicles. The contraction is particularly significant because China accounts for a substantial share of global EV demand and has been a major source of growth for manufacturers and battery suppliers.

The weaker domestic market is prompting Chinese automakers to rely increasingly on exports. Overseas markets offer an opportunity to absorb production and sustain growth as domestic demand loses momentum, but greater dependence on exports also exposes manufacturers to changing trade policies, market-access restrictions and competition from established automakers.

Chinese manufacturers have built substantial production capacity and compete aggressively on pricing, making overseas expansion an important route to maintaining factory utilization and sales volumes. However, the ability to redirect vehicles abroad depends on whether foreign markets can absorb additional supply and whether manufacturers can remain competitive amid regulatory and commercial barriers.

The shift also has implications for the global automotive industry. If domestic Chinese demand remains subdued, manufacturers may intensify their efforts to gain market share in Europe and other regions where EV adoption is growing. That could put pressure on incumbent automakers to reduce prices, improve vehicle offerings or accelerate the introduction of more affordable electric models.

A Global Market Driven by Regional Conditions

September's figures, however, expose the difficulty of assessing the EV industry through a single global growth rate. Europe's record performance contrasts sharply with North America's post-incentive adjustment and China's weakening domestic demand, showing how government policy and local market conditions can produce markedly different outcomes across regions.

The 3% year-to-date increase to 15.5 million vehicles indicates that global sales remain above the level recorded during the corresponding period last year. Nevertheless, the September decline raises questions about how quickly the industry can sustain growth as major markets move away from earlier demand drivers.

Europe's momentum provides a positive signal for manufacturers, but a single record month does not establish that its pace of growth will continue. Likewise, North America's sharp decline may partly reflect a distorted comparison rather than an equivalent collapse in underlying demand. China's downturn, meanwhile, carries greater weight because of the market's size and its central role in global EV manufacturing.

The September figures do not establish that the global EV transition has reversed, particularly given the increase in cumulative sales. They do, however, show that the market's expansion is becoming less uniform. Industry analysts believe continued growth will be buoyed not only by technological progress and manufacturing capacity but also by consumers' willingness to pay for electric vehicles under changing economic and policy conditions.