Europe's EV sales soar as North America drops 44% - here's the catch

Key Points:

• Europe set a new record for electric vehicle (EV) sales in September, with nearly 600,000 units sold, marking a 39% year-over-year increase and a 10% rise over its previous record in June.
• Battery electric vehicles (BEVs) led growth in Europe with a 50% year-over-year sales jump, while plug-in hybrid electric vehicles (PHEVs) grew by 16%, and countries like France, Germany, and the UK saw significant sales increases.
• North America experienced a 44% year-over-year drop in September EV sales to around 130,000 units, largely due to the comparison with the surge in purchases before the expiration of the US federal $7,500 EV tax credit in September 2025.
• China remains the largest EV market with 1.11 million sales in September, though sales declined 18% year over year; Chinese automakers are increasingly exporting EVs, but upcoming EU–China import caps and reduced export tax rebates may challenge this strategy in 2027.
• Other global markets outside China, Europe, and North America showed strong growth, with EV sales rising 81% year over year in September to 310,000 units, contributing to a 93% increase in sales in these regions so far in 2026.