Global sales of fully electric and plug-in hybrid vehicles surged 26% in September to a record 2.1 million units, fueled by China and a U.S. tax-credit rush. China led with 1.3 million sales, while North America hit a record due to expiring incentives. Europe also saw growth, with Tesla’s lower-cost Model Y entering the market.

China dominates global EV sales, accounting for over half of the market. September saw a rise in sales as buyers took advantage of trade-in subsidies before they were phased out. U.S. demand spiked as consumers rushed to claim the expiring $7,500 EV tax credit, expected to decline in the fourth quarter.

Global sales of battery-electric vehicles and plug-in hybrids hit 2.1 million in September, with Chinese sales reaching 1.3 million. European sales surged 36% to 427,541 units, while North American sales climbed 66% to around 215,000. Sales in the rest of the world jumped 48% to 153,594 vehicles.

“With the federal incentive gone, U.S. demand is expected to drop sharply in the final quarter of the year,” said Rho Motion data manager Charles Lester. Automakers like General Motors and Hyundai are offering discounts to mitigate the impact, but overall production is being scaled back.

Read more at Yahoo Finance: Global EV sales hit record 2.1 million in September, research firm says