China Maintains Leadership in Electric Vehicle Sales Amid EU Tariffs
China led global electric vehicle purchases in February, with a 49% sales increase year-on-year despite EU tariffs impacting several brands, particularly MG. Overall sales growth signals a global trend towards electrification, but challenges may arise from tariffs and political policies in markets like the U.S.
In February, China maintained its position as a leader in electric vehicle (EV) purchases, with global sales increasing compared to the previous year, despite recent European Union (EU) tariffs affecting certain brands. Research firm Rho Motion reported a 49% rise in total sales of electric and plug-in hybrid vehicles, totaling 1.2 million units, although these figures were influenced by the timing of the Chinese New Year. When compared to January, sales experienced a slight decline of 3%.
The EU implemented tariffs on vehicles manufactured in China in late October, following an anti-subsidy inquiry, which significantly impacted brands such as MG, owned by SAIC. According to Rho Motion Data Manager Charles Lester, MG’s sales have seen a substantial decline, with SAIC’s car sales growth in Europe averaging 19% lower from November 2024 to January 2025 than in the preceding months. Tariffs have also adversely affected other manufacturers including Honda, Mercedes, Geely, Tesla, Renault’s Dacia Spring, and smaller brands like Nio and Xpeng.
Conversely, BYD has been successfully expanding its market share in Europe, notwithstanding the tariffs. China reported a 76% year-on-year increase in EV sales for February and a 35% increase for the initial two months of 2025. In Europe, sales rose by 19%, marking two consecutive months of double-digit growth following the introduction of EU CO2 emission regulations. Germany exhibited a remarkable 40% increase during the same period.
In North America, EV sales grew by 17% year-on-year, but Rho Motion noted that U.S. President Donald Trump’s policies regarding electrification may result in reduced sales forecasts for the market. Mexico, on the other hand, saw its EV market more than double, credited to the influx of Chinese EV imports that began in significant quantities last year.
In conclusion, China’s dominance in electric vehicle purchases is underscored by a substantial year-on-year increase, despite EU tariffs negatively affecting certain Chinese brands. The overall growth in the EV market during February highlights the ongoing global shift toward electrification, with notable increases in Europe and emerging markets like Mexico. However, the impending challenges posed by tariffs and political stances may affect future sales dynamics.
Original Source: www.tradingview.com
