Global sales of electric and plug-in hybrid vehicles increased by 24% in June compared to the same month last year, according to market research firm Rho Motion.

This growth was primarily due to strong demand in China and Europe, while North American sales declined.

China experienced a 28% rise in EV sales, totaling 1.11 million units.

Meanwhile, Europe saw a 23% increase to around 390,000 vehicles.

In contrast, sales in North America fell by 9% to over 140,000 units.

Other regions, including Southeast Asia and South America, reported a 43% increase, exceeding 140,000 units.

Despite the global growth, EV sales in the United States decreased by 1% in June.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Tariffs create divergent EV adoption paths across global markets

The 25% tariff on imported vehicles in the U.S. is creating a stark divergence between North American and global EV markets, driving fundamentally different adoption trajectories.

Average new vehicle prices in the U.S. are projected to rise from $48,000 to $54,000 due to tariffs, potentially reducing overall auto sales by 6.3% and disproportionately affecting EVs which often rely on global supply chains 1.

This pricing pressure has already triggered changed consumer behavior, with used vehicle sales surging 32% month-over-month in March 2025 as consumers seek more affordable alternatives to new EVs 1.

The tariff impact varies dramatically by manufacturer. Buick faces projected price increases of 22% due to reliance on production in China and South Korea, while Tesla expects only a 3% increase thanks to its domestic manufacturing base 2.

These economic barriers explain why North American EV sales fell 9% while global sales increased 24%, highlighting how trade policies can create regional anomalies in the broader electrification trend.

2️⃣ Government incentives remain the primary driver of global EV adoption rates