(Reuters) -Global sales of fully electric and plug-in hybrid vehicles rose 26% in September from a year ago to a record 2.1 million units, driven by strong demand in China and a late U.S. tax-credit rush, market research firm Rho Motion said on Wednesday.

China accounted for about two-thirds of global sales with about 1.3 million units, while North America also hit a record as U.S. buyers moved to secure incentives before they expired, said Rho Motion data manager Charles Lester.

WHY IT'S IMPORTANT

China is the world's biggest car market and accounts for more than half of global EV sales, which in Rho Motion's data include battery-electric vehicles and plug-in hybrids.

September, typically China's busiest month for car buying, saw sales rise as shoppers looked to make the most of trade-in subsidies before some regions started phasing them out.

U.S. demand reflected a surge as buyers rushed to claim the expiring $7,500 EV tax credit, although demand is expected to decline sharply in the fourth quarter "as both consumers and businesses lose access to the federal incentives that have underpinned EV purchases", Rho Motion said.

Europe also hit a new high, helped by incentives in Germany and strong demand in Britain, while Tesla's rollout of a lower-cost Model Y in Europe is expected to further intensify competition in coming months.

BY THE NUMBERS

Global sales of battery-electric vehicles and plug-in hybrids rose 26% to a record 2.1 million units in September, Rho Motion data showed. 

Chinese sales rose to about 1.3 million vehicles. European sales jumped 36% to 427,541 units, while North American sales climbed 66% to about 215,000. Sales in the rest of the world jumped 48% to 153,594 vehicles.

KEY QUOTE

"With the federal incentive gone, U.S. demand is expected to drop sharply in the final quarter of the year," Lester said. 

Some automakers such as General Motors ( GM ) and Hyundai are trying to soften the blow by offering discounts or tapping dealer inventories, but overall production is being scaled back, he added.