Global electric car sales hit record highs in September, but US market lags behind

The world bought more electric cars in September 2025 than in any other month in history. A new report shows that 2.1 million EVs were sold last month. This huge milestone was driven by strong government incentives and consumer demand in China, Europe, and North America. The global trend points upward, but the party may be coming to an abrupt end in the United States, where the end of tax credits is causing automakers to slam on the brakes.

China continues to prove it is the world's electric car superpower. The country alone was responsible for 1.3 million of the EVs sold in September. Of those, pure battery-electric vehicles saw the most demand, with sales jumping 28% from the previous year to 800,000 units.

For the year so far, from January to September, China has sold an astounding 9 million electric cars. This represents a 24% increase compared to the same period in 2024 and puts the nation as the largest and most developed market for electric transportation.

The EV market in Europe also celebrated a record-breaking month. The continent saw 427,000 electric cars sold in September, a massive 55% increase from the month before and a 36% rise compared to the same time last year. The United Kingdom led this trend, thanks to a government program called the Electric Car Grant encouraging buyers.

Sales of pure electric cars in the UK rose by 30%, while PHEVs saw an even bigger jump of nearly 60%. Meanwhile, other countries are preparing for more growth. Germany's government has approved a new $4 billion incentive plan for 2026, designed to help low- and middle-income families afford electric cars.

The story in North America is one of a frantic boom followed by a looming bust. In September, EV sales in the United States shot up by 66% compared to the previous year. This rush wasn't just caused by excitement over new models, but by a deadline. Car buyers and businesses hurried to take advantage of federal tax credits before they disappeared on September 30.

Now that the tax credits are gone, the future of the American EV market in the near term looks bumpy. Analysts expect demand to drop sharply in the final quarter of 2025. Automakers, not waiting to see what happens, are already making drastic changes.

Hyundai has cut prices on its electric cars to keep them attractive to buyers. Others are scaling back production; General Motors has cut a shift at its factory in Tennessee, and Volkswagen plans to stop making its ID.4 model in the same state in October. Mercedes-Benz has halted the production of four of its EV models, and Nissan has made the most dramatic move of all, completely canceling its plans to build electric vehicles in the United States.

14.7 million EVs have been sold worldwide so far this year - that's 26% more than in 2024. China and Europe continue to push forward with strong government support, but the American market turned into a case study in what happens when incentives suddenly stop. Sales records show that people are ready to switch to electric cars, but the US experience suggests that government policy still plays a huge role in how quickly that switch will happen.

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