By Greta Rosen Fondahn and Alessandro Parodi

(Reuters) – World gross sales of absolutely electrical and plug-in hybrid autos rose 35% in October from the identical month final yr, with development throughout all areas led by a 54% leap in gross sales in China, market research agency Rho Movement mentioned on Wednesday.

European gross sales rose simply 0.8%, however had been up in annual phrases for the second straight month and the research agency expects a superb finish to the yr within the area, information supervisor Charles Lester advised Reuters.

WHY IT’S IMPORTANT

The European auto sector is going through challenges together with excessive manufacturing prices, managing the shift to EVs, and an inflow of lower-cost EVs from Chinese language rivals.

Europe’s largest carmaker Volkswagen (ETR:) mentioned in October it deliberate to close at the very least three factories in Germany.

BY THE NUMBERS

Gross sales of EVs – whether or not absolutely electrical or plug-in hybrids – reached 1.72 million autos worldwide in October, Rho Movement information confirmed.

Gross sales in China hit a file excessive 1.2 million autos.

In the USA and Canada, EV gross sales had been up 11.4% to 0.16 million, whereas in Europe, they reached 0.26 million, up barely on the yr however down 14% from September.

In the remainder of the world, gross sales elevated 10.9%.

KEY QUOTES

“The Chinese EV market shows no signs of slowing down as it enters the final two strong automotive sales months of the year,” Rho Movement mentioned in an announcement.

Lester mentioned November and December are usually seasonally sturdy months.

Carbon emission discount targets set within the EU for subsequent yr might result in price cuts as automakers look to spice up EV gross sales to satisfy targets and keep away from fines, he added.

CONTEXT

China’s passenger automobile gross sales jumped 11.2% in October year-on-year, information from China Passenger Automotive Affiliation confirmed final week, led by home champion BYD (SZ:).