Global electric vehicle (EV) sales increased by 9% year-on-year in July 2026 to 1.85 million units, with strong growth in Europe helping offset declines in China and North America.
According to Benchmark Mineral Intelligence, global EV sales reached 11.5 million units in the first seven months of 2026, up 4% on the same period last year.
The figures highlight a growing divergence between major EV markets, with Europe continuing to expand rapidly while China and North America face weaker demand.
Benchmark’s senior EV Analyst, George Whitcombe, said the global market was “defined by regional divergence”, although year-to-date growth improved again in July following a difficult start to the year in China and North America.
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Europe continues to lead EV growth
Europe was the strongest-performing major region in July, with EV sales rising 33% year-on-year to 450,000 units.
Sales were down 17% compared with June, reflecting the seasonal slowdown typically seen across European automotive markets during the July and August holiday period. However, year-to-date sales remained 28% higher than in the first seven months of 2025, reaching 3 million units.
The UK was among the strongest-performing major European markets, with EV sales increasing by 43% year-on-year in July.
Germany recorded 46% growth, while France saw sales rise by 81% and achieved an EV penetration rate of 37%.
Benchmark attributed much of Europe’s growth to the return of EV incentives in several major markets, highlighting the impact that consumer-facing subsidies can have on electric vehicle adoption.
Whitcombe said: “Europe’s legislative drivers and subsidies continue to support the strong growth in the region, with EV sales up 33% year-on-year. What stands out about Europe is the subsidy support currently available in its major markets that is enabling them to be prominent performers in terms of EV sales growth within the region. Highlighting the significant impact that consumer facing support has.”
For UK fleet operators, the continued growth in Europe comes as businesses face increasing pressure to transition fleets towards lower-emission vehicles, while government policy and tax incentives continue to influence company car and fleet purchasing decisions.
China sees signs of recovery
China remained the world’s largest EV market, with 980,000 vehicles sold in July.
However, sales were still 5% below July 2025 and 7% lower than June. Year-to-date sales stood at 5.9 million units, down 12% year-on-year.
Despite the decline, Benchmark said the market was showing signs of recovery following its slow start to 2026.
More than 500,000 Chinese new energy vehicles were exported in July, setting another monthly record as manufacturers increasingly look overseas for growth.
Benchmark said China’s EV penetration rate has nevertheless continued to increase because the wider vehicle market has declined more sharply. EVs accounted for more than half of vehicle sales in China during the first seven months of 2026, with several individual months exceeding 60% penetration.
North American market shrinks
North America recorded a much weaker performance, with EV sales falling 27% year-on-year in July to around 140,000 units.
The decline left the region 18% down year-to-date.
The US market is continuing to face the impact of changes to its EV support framework, with the federal tax credit removed at the end of September 2025.
Benchmark said the US had shown signs of improvement during the second quarter, when EV sales were 15% lower year-on-year compared with a 33% decline at the end of Q1.
However, July saw year-on-year declines of more than 30% as the market was compared with the strong sales period immediately before the tax credit was withdrawn.
Rest of world sales nearly double
Markets outside China, Europe and North America continued to record the fastest growth.
EV sales across the rest of the world rose 97% year-on-year in July to 280,000 units, taking year-to-date sales to 1.7 million – up 96% on the same period in 2025.
Benchmark’s figures underline the increasingly fragmented nature of global EV adoption, with policy support, incentives and market conditions creating very different growth rates between regions.
For fleet decision makers, the figures also point to the importance of developments in European EV markets, where strong sales growth and government support are accelerating the availability and adoption of electric vehicles.
Benchmark’s latest figures follow a 2 million-unit global EV sales total recorded in June, when worldwide sales rose 7% year-on-year.