Global electric vehicle sales experienced a boost last month, with 1.7 million purchases worldwide, including in the United States, as consumers seek to take advantage of tax credits set to expire at the end of September.
Rho Motion, a market research firm, released data on Friday indicating that global purchases of electric vehicles increased by 5% compared to July and were 15% higher than in August 2024. These sales hikes include 1.16 million battery electric vehicles and 0.57 million plug-in hybrid electric vehicles.
U.S. dealerships are also experiencing a hike in EV sales, a month before consumer tax credits for purchases of battery-powered vehicles end. Rho Motion found that EV sales in North America, which included the U.S., Canada, and Mexico, are up 6% year-to-date.
President Donald Trump’s One Big Beautiful Bill Act slashed billions of dollars in clean energy tax credits that the Biden administration enacted through the 2022 Inflation Reduction Act.
The megabill, signed by Trump on July 4, eliminated the IRA’s EV tax credits, which offered consumers up to $7,500 for purchasing a new EV and $4,000 for a used one. The credits are set to expire on Sept. 30.
The EV tax credits were intended to encourage consumers to purchase battery-powered vehicles. But Trump and Republicans have criticized the tax incentives and regulations meant to boost EVs as costly and coercive.
“Growth has increased due to an increase in EV sales in the U.S. in August 2025 as consumers bring forward purchases to take advantage of the tax credit before it ends on Sept. 30, 2025. We also expect September sales to be strong, followed by a large reduction in monthly sales in the final quarter of the year,” Rho Motion wrote.
With the tax credits set to expire, industry experts believe EV adoption will likely decline. Still, U.S. automakers such as Ford are adapting to these changes. For instance, the auto manufacturer announced plans to produce a midsize pickup truck priced around $30,000 by 2027.
“Sales in the rest of the world have taken off as emerging markets are leapfrogging over the gas car phase and moving directly to electric vehicles,” Ingrid Malmgren, the senior policy director of Plug-In American, said in a statement.
“EVs are here to stay,” Malmgren added. “They save drivers all over the world money by eliminating reliance on gasoline, they improve air quality in cities globally, and they provide a superior driver experience with less maintenance. They are simply better vehicles.”
IRS GIVES LEEWAY FOR SEPT. 30 DEADLINE FOR ELECTRIC VEHICLE TAX CREDITS
Sales are up in other regions such as Europe, with a 31% year-to-date rise in sales. China is also experiencing a 25% year-to-date increase in sales.
Rho Motion noted that year-over-year growth in the Chinese market slowed in July and August in comparison to last year, when there was a significant rise in EV demand due to an increase in subsidies.
