In February, China led global electric vehicle sales despite EU tariffs affecting certain brands. Sales grew by 49% year-on-year, although figures were influenced by the Chinese New Year. Tariffs imposed on Chinese cars at the end of October contributed to a decline in sales for companies like MG, while BYD gained market share.
China experienced a significant increase in electric vehicle (EV) purchases in February, despite European Union (EU) tariffs negatively impacting sales for several Chinese brands. According to research firm Rho Motion, worldwide sales of battery electric and plug-in hybrid vehicles rose by 49% year-on-year during this period, amounting to 1.2 million units. However, this figure was skewed by the timing of the Chinese New Year celebrations. In contrast, sales saw a decrease of 3% when compared to January.
The EU enacted tariffs on vehicles manufactured in China at the end of October 2024, following an anti-subsidy investigation. Rho Motion’s Data Manager, Charles Lester, indicated a dramatic decline in sales for the MG brand, which is operated by China’s SAIC. Specifically, sales growth for SAIC vehicles dropped by an average of 19% in the months from November 2024 to January 2025 compared to the earlier months of the year.
Numerous manufacturers, including Honda, Mercedes, Geely, Tesla, Renault’s Dacia Spring, as well as the smaller Chinese firms Nio and Xpeng, experienced declining sales due to these tariffs. Conversely, BYD is reportedly increasing its market share in Europe and showing robust growth worldwide, exhibiting resilience despite the tariffs imposed on other brands.
In terms of regional performance, China saw a remarkable 76% increase in EV sales for February and a 35% rise for the initial two months of the year. The European market also demonstrated growth, with a 19% increase compared to the previous year, marking two consecutive months of double-digit growth driven by the implementation of EU CO2 emission targets. Notably, Germany recorded a 40% rise in the first two months of 2025. Meanwhile, North America registered a 17% increase in EV sales, although projections for growth may be hampered by the current administration’s stance on electrification. In Mexico, the EV market has more than doubled, credited largely to a surge in Chinese EV imports.
In summary, China’s electric vehicle market continues to thrive, highlighted by significant year-on-year sales growth in February. While EU tariffs have adversely affected several Chinese-made brands, others, like BYD, are successfully expanding their presence. The overall global market for EVs is showing promising growth, particularly in Europe and Mexico, even as challenges persist in North America.
Original Source: www.tradingview.com
