China Dominates Electric Vehicle Purchases Despite EU Tariffs Impact

China’s electric vehicle purchases soared by 76% in February, despite EU tariffs impacting sales of some brands like MG. Total global EV sales increased by 49% year-on-year, with Europe up 19%. BYD’s market share is growing, while North America sees a 17% rise in sales, amid shifting political dynamics.

China led the global electric vehicle (EV) purchases in February, demonstrating a 76% year-on-year increase, according to research firm Rho Motion. However, the timing of the Chinese New Year influenced these figures. While total global EV sales, including battery electric and plug-in hybrid vehicles, surged by 49% to 1.2 million units, a 3% decline occurred compared to January.

The European Union imposed tariffs on China-made cars in late October following an anti-subsidy investigation, affecting sales for brands like MG owned by SAIC. Charles Lester, Data Manager at Rho Motion, noted MG’s sales dropped sharply due to these tariffs, with SAIC’s sales growth in Europe averaging 19% lower from November 2024 through January 2025 compared to the preceding period.

Honda, Mercedes, Geely, Tesla, and smaller Chinese brands like Nio and Xpeng also witnessed sales impacts from the tariffs. Conversely, BYD is expanding its market presence across Europe despite the tariff impositions. Meanwhile, the EU’s sales increased by 19% year-on-year in February, marking continued growth driven by new CO2 emission targets, particularly in Germany, which saw a 40% surge over the first two months of 2025.

North America’s EV sales grew by 17% year-on-year, but evolving political stances, particularly from U.S. President Donald Trump regarding electrification, may lead to lowered forecasts. Furthermore, Mexico’s EV market has experienced remarkable growth, more than doubling due to substantial Chinese EV imports that began last year.

In summary, while China demonstrates strong increases in EV purchases and market growth globally, EU tariffs impose significant challenges on certain brands. The market dynamics illustrate complex interactions between international trade policies and local emissions regulations, highlighting the ongoing shifts in the global electric vehicle landscape.

Original Source: www.tradingview.com