Europe eclipses China to become key global BEV sales driver
In July, just under 1.2 mn passenger BEVs were sold globally, which is fewer than June, but around 11% up, YoY.
China’s domestic car market woes are crimping demand there, but other markets are doing well.
Europe has become a key driver of global battery electric vehicle demand growth in recent months as China’s weak (in fact shrinking) car market means that it continues to see negative growth in PHEV and EREV demand and only marginal gains for BEVs.
However, China continues to build NEVs in a robust manner, offsetting poor local demand by ramping up exports, and increasing the share of those exports that NEVs account for. To July of this year, China exported 5.6 mn passenger cars (3mn in January to July 2025) of which 2.9 mn were NEVs. As a share of total PV production, exports have represented over 40% in recent months.
China’s attractive and well specified BEVs and PHEVs have fueled NEV markets around the world from Europe to Mexico to Australia with no sign of a slowdown in prospect. In fact, China’s vehicle exports have becomecrucial to maintaining its industrial footprint at an acceptable level of utilisation though some ICE-based plans have been forced to close as demand in that segment has been rapidly eroded.
Europe, though a fragmented entity as far as the transition to electrification is concerned, appears to be embracing BEVs.
Growth in global BEV share of total PV sales paused in July as China’s volume continued to languish and US demand remains at a modest level. Despite this the July share figure is among the best seen so far, helped by a strong showing in Europe where the upward trend continues.
Despite China exporting a significant number of PHEVs, many to Europe, this can’t offset weak domestic demand, and this has impacted the global performance of this xEV type. FHEV maintains its steady performance, landing at an enhanced level of share since the fuel price hike.
* Global xEV market includes global car and SUV only (no LCV)
Share up again for Chinese brands in Europe
Europe’s BEV market posted one of its strongest YoY results in July, with BEV sales volume up around 40%
Chinese brand vehicles now account for over 30% of the region’s PHEV sales, with BEV share at 15%
Just under 290,000 passenger BEVs were sold in the region in July with growth in all markets except for Hungary, Poland and Turkey. The latter has come off the boil after a period of significant BEV demand growth lifting it into the region’s top 5 markets by BEV sales. Generally, there is robust demand for BEVs across the region as new models, incentive schemes in many markets and an expanding public charging network drive sales.
The PHEV and FHEV segments are also seeing solid growth, the former responding to an influx of attractive Chinese models, aimed at avoiding the increased BEV tariffs imposed by the EU in 2024. Growth in the latter has been helped by high fuel prices as well as some expansion of the FHEV model pipeline. The Chinese-led PHEV uplift will accelerate in advance of the EU’s likely extension of BEV tariffs to the PHEV segment – there may well be a rush to import and distribute product before the existing window closes. Behind this activity lies China’s need to maximise exports as its domestic car market shrinks.
*pan-Europe + CIS, includes cars and SUVs only (no LCV) ** July Top 10 BEV Models are based on GlobalData’s European Hybrid & Electric Vehicle Forecast
MORE DATA: GlobalData automotive forecasts