Global EV sales contract as affordability replaces range anxiety

Global electric vehicle (EV) sales experienced their first contraction in seven months in September, according to data from Benchmark Mineral Intelligence (BMI). While European EV sales reached a record monthly high of approximately 600,000 units, this growth was insufficient to offset significant declines in other major markets.

North American EV sales plummeted by 44% compared to the same month last year, marking the largest decline this year. This drop is attributed to a high comparison base from September 2025, when consumers rushed to purchase vehicles before the expiration of EV subsidies. Meanwhile, the Chinese market saw an 18% year-on-year decrease in September sales.

A McKinsey & Company report highlights a fundamental shift in consumer concerns. Range anxiety, once a primary barrier, has dropped from being the second largest concern to the eighth, as improved battery technology and charging infrastructure mitigate these fears. The report identifies vehicle affordability as the new primary obstacle to mass-market adoption. As inflation and interest rates remain high, consumers are increasingly sensitive to high purchase and insurance costs, shifting the industry competition from battery range to cost-efficiency and price competitiveness.