Global EV Sales Hit Record 2.1 Million in September, Driven by China and US Tax-Credit Rush

Global sales of fully electric and plug-in hybrid vehicles surged 26 percent in September from a year earlier to a record 2.1 million units, boosted by strong demand in China and a last-minute rush by US buyers to claim expiring tax credits, market research firm Rho Motion said on Wednesday.

China led the charge with about 1.3 million vehicles sold — roughly two-thirds of global EV sales — while North America also reached a record as US consumers hurried to secure federal incentives, Rho Motion data manager Charles Lester said.

Why It Matters

China, the world’s largest auto market, accounts for more than half of all EV sales worldwide. September, typically the country’s busiest car-buying month, saw a spike in purchases as buyers rushed to take advantage of trade-in subsidies before they were phased out in some regions.

In the US, demand jumped as consumers and businesses raced to benefit from the $7,500 EV tax credit, which has now expired. Rho Motion warned that sales could fall sharply in the final quarter as those incentives disappear.

Europe also set a new record, helped by German subsidies, robust demand in Britain, and Tesla’s launch of a lower-cost Model Y variant, which is expected to further heat up competition.

By the Numbers

• Global sales: 2.1 million EVs (+26% YoY)

• China: ~1.3 million units

• Europe: 427,541 units (+36%)

• North America: ~215,000 units (+66%)

• Rest of the world: 153,594 units (+48%)

Key Quote

“With the federal incentive gone, US demand is expected to drop sharply in the final quarter of the year,” Lester said, adding that automakers such as General Motors and Hyundai are offering discounts or using dealer stock to offset the loss, though production is already being scaled back.