China Sets Record with Over One Million EV Sales in August
China’s EV Sales Reach New Heights
China has achieved a significant milestone in the electric vehicle (EV) market, becoming the first country to record over one million EV sales in a single month. In August, China saw a 33% growth in EV sales compared to the previous year. This achievement highlights China’s continued dominance in the EV industry.
European EV Growth Turns Negative
While China celebrates its success, Europe’s EV market experienced a decline for the first time. The European Union (EU) and the United Kingdom (UK) recorded a -4% growth in EV sales. This contraction can be attributed to subsidy cuts in countries like Germany and trade restrictions imposed by the EU on Chinese EVs.
Overall Car Sales in China Decline
Despite the positive performance of the EV market, overall car sales in China fell by 1.1% in August, with a total of 1.92 million units sold. To encourage the transition to EVs or hybrids, owners of internal combustion engine (ICE) cars were given subsidies. These subsidies incentivized consumers to trade in their polluting vehicles for cleaner alternatives.
Global Demand for EVs Continues to Grow
According to research by Rho Motion, global demand for EVs remains strong, with 9.8 million battery-powered cars sold in 2024. Year-to-date growth as of August is at 20%. The United States and Canada saw a steady 9% growth in EV sales. However, the outcome of the upcoming presidential election may impact the future trajectory of the EV market in these countries.
China’s EV Sales Up, Overall Cars Down
While China’s EV market thrives, it is important to note that the overall passenger vehicle market in China experienced a decline. The China Passenger Car Association (CPCA) reported a 1.1% decrease in sales of all engine types. The increase in EV sales was driven by subsidies offered to drivers trading in more polluting vehicles. These subsidies provide financial incentives for consumers to switch to electric or hybrid cars.
China’s EV Market Expected to Continue Growing
Despite the challenges faced by the overall car market, experts predict that China’s demand for EVs will continue to rise. Charles Lester, Data Manager at Rho Motion, believes that China will reach the milestone of one million EV sales in a month multiple times before the end of the year. The surge in sales typically occurs in the latter half of the year.
