European EV Market Experiences Surge, While North American Sales Decline

In September, the electric vehicle (EV) market experienced a notable shift in global dynamics, with Europe reaching an all-time high in sales while North America saw a considerable downturn. This period underscores a rebalancing of the EV landscape, moving growth beyond historically dominant regions.
Detailed Report on Global EV Sales Trends
Data released by Benchmark Mineral Intelligence reveals that Europe recorded nearly 600,000 EV sales in September, marking a substantial 39% year-over-year increase. This figure surpassed its previous record set in June by 10%, primarily driven by a 50% jump in battery electric vehicle (BEV) sales, with plug-in hybrid electric vehicles (PHEVs) growing by 16%. Countries like the UK, France, Spain, Portugal, and Finland all reported their highest monthly EV sales ever, with France's sales soaring by 78% and Germany's by 61%. The UK's sales, while boosted by seasonal new registration plates, maintained an EV share of approximately 40%.
Conversely, North America faced a significant challenge, with EV sales plummeting by 44% year-over-year to around 130,000 units. This marks the steepest percentage decline for the region in 2026. This dramatic decrease is largely attributed to the expiration of the US federal $7,500 EV tax credit in September 2025, which had spurred a rush of purchases prior to its cessation. Despite the sharp decline, experts like Charles Lester from Benchmark caution against interpreting this as a collapse in demand, expecting a less stark year-over-year comparison in the coming months as sales will be measured against the post-credit removal period.
China, while still the largest EV market with 1.11 million units sold in September, experienced an 18% year-over-year decrease. This decline is more pronounced than the 11% drop observed in August, with PHEV sales seeing a 25% decrease and BEVs a 6% decline for the year. Chinese automakers, facing a domestic slowdown, have increasingly focused on exports, reaching a record 558,000 passenger car exports in September. However, impending policy changes, such as a cap on Chinese EV imports by the EU and a reduction in China's export VAT rebate, could impact this strategy in 2027.
The rest of the world outside these major markets demonstrated robust growth, with September EV sales rising by 81% year-over-year to approximately 310,000 units. This sector has accumulated 2.3 million EV sales year-to-date, representing a 93% increase and nearly double North America's total, highlighting a significant and expanding source of global EV demand.
The latest trends in global EV sales illustrate a dynamic and evolving market. While established regions like North America face headwinds, driven by policy shifts and market comparisons, Europe is stepping up as a key growth driver. The sustained expansion in other global markets also underscores the increasing worldwide adoption of electric vehicles. This rebalancing suggests a future where EV growth is more geographically diverse, prompting automakers and policymakers to adapt to these shifting landscapes to maintain momentum towards a greener transportation future.