Global electric car sales fell for the first time in history in July this year, after China reduced subsidies for the purchase of electric cars, a proof to the government’s influence for the electric car market, Bloomberg reports. According to a report released by consulting firm Sanford C. Bernstein on Tuesday, approximately 128,000 electric cars were sold worldwide in July 2019, down 14%. Electric car sales fell in China and North America, but increased in Europe, writes Agerpres.

The sales growth rate of electric cars in China, the largest manufacturer and also the largest market for electric vehicles, is beginning to slow, as government subsidies decrease, but also economic slowdowns are beginning to influence consumer purchasing decisions. The Beijing government has decided to reduce subsidies for the purchase of new electric cars starting June 26, with the purpose of encouraging car builders to focus on innovation.