EV sales are booming in Europe – and plunging in North America

Electric vehicle sales are moving in opposite directions on either side of the Atlantic. In Europe, EV sales jumped 36% in August compared with a year earlier, helped by purchase incentives, cheaper models, and higher gas prices in some countries. France, Germany, and the UK are leading that growth, with France hitting a record 41% EV market share. Spain also just completed its first full month of a new incentive program, offering up to €4,500 (about $5,190) toward a new electric car, with eligibility backdated to January 1.

In North America, EV sales fell 33% year over year in August. Part of that drop reflects last year's rush to buy EVs before the federal tax credit expired on September 30, 2025, which makes this year's comparison look worse than it might otherwise. But supply is also a factor: automakers have canceled EV models and cut back availability in response to the less favorable US policy environment, so it isn't just a question of buyer demand drying up. In Canada, automakers have been using a quota of lower-tariff import permits for Chinese-built EVs, and unused permits have rolled over into a new allotment running through February 2027.

None of this changes what's available for home energy upgrades, but it's a sign that EV incentives and model availability are shifting differently by region. If you're considering an EV alongside other home electrification plans, like a heat pump or panel upgrade, it may be worth checking what incentives currently exist in your area, since US federal support has weakened while several European countries have expanded theirs.