The latest report shows that global electric vehicle (EV) sales in August 2026 reached 1.83 million units, with a year-on-year increase of 2%, marking the slowest monthly growth rate so far this year. While the European market continued to show strong performance with a 36% annual increase, the North American market continued to decline by 33%, marking the deepest decline of the year.
According to a report released by Benchmark Mineral Intelligence (BMI) on September 9, EV sales in Europe saw a 36% annual increase in August, but due to the seasonal effects of the summer, there was a 15% monthly decrease. The growth rate for the year to date has increased from 28% at the end of July to 29%.
France, Germany, and the United Kingdom collectively account for more than half of EV sales in Europe, driven by factors such as vehicle purchase incentives, lower vehicle prices, and higher fuel prices in some markets, leading to continued growth. In August, the EV penetration rate in France reached 41%, setting a new record as reported by BMI.
Charles Lester, director of BMI’s data department, stated that the significant slowdown in global EV sales growth in August was mainly due to the expanded decline in the North American market, offsetting the double-digit growth in Europe and the recovery in the Chinese market. As of August, global EV sales year-to-date (YTD) stood at 13.4 million units, a 4% annual increase. Lester believes that the year-on-year decline in North America and China is mainly due to the base effect from the same period last year rather than the emergence of new deterioration in demand.
In August, North American sales decreased by 33%, marking the largest decline of the year with a 21% year-to-date decrease. This trend is primarily driven by the U.S. market: the rush in purchases due to the expiration of federal electric vehicle tax exemptions at the end of September 2025 resulted in a higher base period last August, leading to a significant year-on-year decrease this year.
It is worth noting that EV sales in the United States slightly rebounded in August compared to July, but still showed a significant decline compared to the same period last year. Several car manufacturers experienced a significant year-on-year decrease in EV sales in August, with some market shares shifting towards plug-in hybrid models. Due to the similarly high base period from last September’s purchasing rush, the market expects the year-on-year comparison figures for September to also show a significant decline.
Canada’s first six-month low-tariff import window for Chinese-made electric vehicles closed on August 31. According to data from Global Affairs Canada, as of August 28, out of 24,500 quotas, 15,603 units had been utilized, accounting for approximately 64%, while the remaining 8,897 unused quotas have been carried over to the second import window open from September 1 to February 28, 2027, totaling 33,397 available quotas. The usage of the first window was concentrated among a few manufacturers already established in Canada, with many major Chinese brands yet to enter the local market.
The Chinese market saw an 11% year-on-year decrease in August, compared to a 5% decrease in July, but a 4% increase from the previous month. The year-to-date decrease remained relatively stable at 12%. Despite the widening year-on-year decrease, electric vehicles in China have maintained a penetration rate of over 60% in the overall passenger vehicle market for the fourth consecutive month, reflecting the ongoing trend of consumers shifting towards electric vehicle models, even as overall demand remains subdued.
Chinese car manufacturers continue to rely on overseas markets, with exports of new energy vehicles (NEVs) in August increasing by over 150% annually to approximately 518,000 units, reaching a new monthly high. Cumulative exports have exceeded 3.3 million units so far this year.