Electric vehicle demand continued to expand globally in July, with worldwide sales rising 9% from a year earlier. During the first seven months of 2026, global EV sales reached 11.5 million vehicles, up 4% compared with the same period in 2025.

However, the headline growth figure hides major differences between regions. Europe is accelerating quickly, China is beginning to recover from a weak start to the year, and North America remains under pressure.

Europe Leads the Growth

Europe was the strongest major EV market in July.

Around 450,000 electric vehicles were sold across the region during the month, representing a 33% increase from July 2025.

From January through July, European EV sales reached about 3 million units, 28% higher than during the same period last year.

Several large markets recorded especially strong gains. EV sales in France increased 81% year over year in July, while electric models reached a record 37% share of the country’s total vehicle market.

Germany posted annual EV sales growth of 46%, while the UK increased by 43%. Although European EV sales fell 17% compared with June, the monthly decline was largely consistent with the seasonal slowdown normally seen during the summer holiday period.

Spain Adds New Support

Spain could strengthen its EV market further during the second half of 2026. A new incentive programme opened for applications on August 4, replacing the previous scheme that ended in 2025.

The programme offers a base subsidy of up to €4,500 toward the purchase of a new electric passenger car. Eligible purchases can be counted retroactively from January 1, 2026.

Spanish EV sales were already 34% higher year to date through July. If the new support encourages more consumers to switch to electric cars, Spain could become an increasingly important contributor to European EV growth during the remainder of the year.

China Shows Signs of Recovery

China remains the world’s largest EV market by a wide margin. Approximately 980,000 electric vehicles were sold there in July. That was still 5% lower than in July 2025, while cumulative sales for the first seven months remained 12% below last year at around 5.9 million units.

Nevertheless, the July result represents an improvement compared with the much steeper declines recorded earlier in 2026.

More importantly, electric vehicles continue to gain share within China’s overall car market.

EVs represented more than 50% of total vehicle sales during the first seven months of the year, compared with 48% during the same period in 2025. In some individual months, pеnetration has already exceeded 60%. This means the transition toward electric cars is continuing even while total EV volumes remain below last year.

Chinese EV Exports Reach New High

Chinese manufacturers are increasingly relying on international markets for additional growth. More than 500,000 new energy vehicles were exported from China in July, setting another monthly record.

The expansion highlights how Chinese manufacturers are increasing their presence across Europe, Southeast Asia, Latin America and other regions.

It also creates an interesting contrast: domestic EV sales remain relatively weak compared with 2025, but Chinese brands are becoming increasingly important outside their home market.

North America Falls Behind

North America recorded the weakest performance among the major EV regions. Around 140,000 electric vehicles were sold in July, down 27% from a year earlier. During the first seven months of 2026, sales reached approximately 900,000 vehicles, representing an 18% annual decline.

The United States accounts for much of that weakness. The market had begun improving during the second quarter, with the year-to-date decline narrowing from 33% at the end of March to 24% by the end of June. July, however, brought another sharp annual decline Comparisons are particularly difficult because sales in mid-2025 were boosted ahead of the removal of federal EV tax incentives later that year.

Growth Beyond Major Markets

Outside China, Europe and North America, EV growth was far stronger. Sales across the rest of the world reached approximately 280,000 units in July, up 97% year over year.

Cumulative sales reached 1.7 million vehicles, representing growth of 96%. These figures show that emerging EV markets are becoming increasingly important to global demand.

A Divided Global Market

The July results demonstrate that the global EV transition remains intact, but it is no longer progressing evenly.

Europe is currently setting the pace among mature markets, supported by strong consumer demand and incentives. China is gradually recovering while simultaneously expanding exports. North America is struggling with a more difficult policy and demand environment, while emerging markets are growing exceptionally quickly.