In August 2024, despite the sluggish performance of the European electric vehicle market, global electric vehicle sales still achieved a year-on-year growth of 20%. Data from market research company Rho Motion shows that relying on the strong performance of the Chinese market, total global sales of pure electric vehicles and plug-in hybrid vehicles reached 1.47 million units in August.

China's electric vehicle sales in August increased by 42% year-on-year, exceeding 1 million units, setting a record high and accounting for more than two-thirds of global electric vehicle sales. The Chinese government has significantly boosted market demand by promoting the elimination of highly polluting vehicles and providing car purchase subsidies, and electric vehicle sales are expected to remain high before the end of the year. Rho Motion predicts that total electric vehicle sales in China will increase by one-third year-on-year in 2024, reaching 10.5 million units.

Compared with the rapid growth of the Chinese market, the European market faces more severe challenges. In August, European electric vehicle sales fell 33% year-on-year, the lowest level since January 2023. The German market was particularly affected, with electric vehicle sales falling by 23% year-on-year, mainly due to the government reducing electric vehicle purchase subsidies. This policy adjustment directly affects market demand.

Still, Rho Motion expects European electric car sales in 2024 to be roughly the same as last year's 3.1 million units, indicating stable market demand but not showing significant growth. Some European consumers are switching to hybrids or waiting for more cost-effective electric models, further cooling demand. In addition, some car companies have adjusted their electrification strategies and reduced the production of electric vehicles and the release of new models.

Electric vehicle sales in the North American market achieved a year-on-year growth of 8% in August, with total sales reaching 160,000 units. Although the growth rate is not as fast as that of the Chinese market, demand for electric vehicles in North America remains stable, showing certain growth potential in the future. Electric vehicle sales in the United States and Canada have not achieved the expected strong growth, but if policy support is further strengthened, sales may further increase in the future.

The global electric vehicle market has experienced rapid growth over the past few years, but demand growth has slowed in recent months. Part of the reason is that consumers are waiting for more affordable models, or choosing gasoline-electric hybrid vehicles as alternatives, leading some car companies to reassess their electrification plans and reduce the production of electric vehicles and the launch of new models. This adjustment may affect consumers' purchasing interest, thereby forming a vicious cycle of declining demand. Nonetheless, global electric vehicle sales are expected to maintain growth thanks to the continued strong performance of the Chinese market.

In response to the decline in electric vehicle sales, the German government announced in September 2024 that companies will enjoy tax breaks of up to 40% when purchasing new electric vehicles, aiming to restore the market's interest in electric vehicles and promote companies to accelerate their green transformation , in response to negative market sentiment following the removal of subsidies last year.