Global electric vehicle sales grew 21% year-on-year in July, the slowest rate since January, as China’s plug-in hybrid sales momentum waned, according to Rho Motion. China, the largest car market, accounts for over half of global EV sales, including battery-electric vehicles and plug-in hybrids.

In July, global sales of battery-electric vehicles and plug-in hybrids reached 1.6 million units, with China’s EV sales growth easing to 12%. BYD, the top EV maker, saw a third consecutive monthly drop in registrations. European sales surged 48% to about 390,000 units.

Despite the slowdown in China, global EV sales show other markets picking up the slack. European sales benefited from decarbonisation incentives, while North American sales climbed 10% to over 170,000 units. Sales in the rest of the world surged 55% to more than 140,000 vehicles.

Rho Motion data manager Charles Lester noted that the previously booming Chinese EV market was dampened by a pause in some 2025 government subsidy schemes for EV and plug-in hybrid purchases. However, he remains optimistic about the overall trajectory for EV adoption in 2025.

Looking ahead, Chinese car sales are expected to rebound in August with new funds available for subsidy schemes. Meanwhile, a U.S. tax credit cut for new EV purchases or leases at the end of September could impact demand in the country, according to Lester.

Read more at Yahoo Finance: Electric vehicle sales growth eases to 21% in July, research firm says