Data released on Thursday by research firm Benchmark Mineral Intelligence shows that global electric vehicle demand grew for the fifth consecutive month in July, driven by robust growth in the European market, although sales weakened in regions like North America.

Sales of battery electric and plug-in hybrid vehicles rose 9% year-on-year in July, reaching 1.85 million vehicles. This brings cumulative sales for the year to date to 11.5 million vehicles. The data highlights a widening divergence between major electric vehicle markets.

European demand was supported by subsidy policies, while the U.S. market was impacted by the removal of the federal electric vehicle tax credit. In July, European sales surged 33% to 450,000 vehicles, pushing the year-to-date increase to 28%.

BMI noted that "major European automotive markets continue to maintain high growth rates, with many markets reintroducing electric vehicle subsidy programs over the past 18 months." In France, Germany, and the UK, electric vehicle sales in July rose by 81%, 46%, and 43%, respectively.

In North America, the end of the U.S. electric vehicle tax credit led to a 27% decline in sales, totaling 140,000 vehicles.