Global electric vehicle sales climbed to 1.83 million units in August, but the 2% year-over-year growth masks a market splitting in half: Europe sold 380,000 EVs, up 36%, while North America sold just 140,000, down 33%, according to data from Reuters citing research firm Benchmark Mineral Intelligence.

Two markets moving in opposite directions

Benchmark Mineral Intelligence analyst Charles Lester put it bluntly in comments reported by Electrek: “Global EV sales growth cooled sharply in August, rising just 2% year-on-year to 1.83 million units, as a deepening contraction in North America offset continued double-digit growth in Europe and an improving picture in China.” China still moved the most volume at 1.03 million units, but that figure was actually down 11% year over year, meaning Europe alone kept the global tally from shrinking.

What’s fueling Europe’s surge

Europe’s year-to-date EV sales sit at 3.3 million, up 29% versus last year, and Electrek’s reporting ties the growth directly to government money: Spain’s new Auto+ program offers up to €4,500 in purchase subsidies, and France posted a record 41% EV market share in August alone. Cheaper new EV models reaching showrooms and elevated gas prices in some countries are compounding the incentive effect. On its own site, Benchmark Mineral Intelligence describes Europe as “the standout performer… supported by policy incentives and a growing Chinese OEM presence,” a trend that has held steady across multiple months of 2026 reporting.

What’s dragging North America down

The U.S. and Canada are living through the mirror image. The federal EV tax credit expired on September 30, 2025, and August 2026 sales are now being measured against last year’s pre-deadline buying rush, which inflates the year-over-year decline somewhat. But Benchmark’s own framing goes further, citing “the removal of the EV tax credit in September last year, alongside weaker legislative drivers” as the core problem, not just a tough comparison. Electrek adds that automakers have been canceling planned EV models in response to the policy shift, and that hybrids are absorbing much of the demand EVs are losing at dealerships.

The numbers by the year, not just the month

Zoomed out, the gap looks even starker. North America’s year-to-date EV sales through August sit at 1.0 million units, down 21% from the same period in 2025, while Europe’s year-to-date total of 3.3 million is more than triple that. Global year-to-date volume stands at 13.4 million units. Without a federal purchase incentive of any kind on the table in the U.S., and with automakers pulling back on EV commitments rather than doubling down, there’s little in the current data suggesting that gap narrows before the year is out.