China Dominates Electric Vehicle Purchases Amid EU Tariff Challenges
China continues to lead global electric vehicle sales despite EU tariffs imposing challenges on several brands. In February, overall EV sales rose by 49% year-on-year. The tariffs, effective since late October, have impacted sales of brands like MG and Honda but have not deterred BYD’s growth. Sales in Europe and North America also reflect positive growth trends, while Mexico experiences significant gains through Chinese imports.
In February, China once again led the global increase in electric vehicle (EV) purchases, despite European Union tariffs impacting sales of certain brands. Research firm Rho Motion reports that combined sales of battery electric and plug-in hybrid vehicles surged by 49% year-on-year to 1.2 million units, although figures were skewed due to the Chinese New Year timing. Comparatively, there was a slight decline of 3% from January.
The EU imposed tariffs on China-made vehicles following an anti-subsidy investigation in late October. Charles Lester, Data Manager at Rho Motion, noted significant declines in sales for brands like MG, owned by China’s SAIC, which faced some of the steepest tariffs. Between November 2024 and January 2025, the growth rate for SAIC’s sales in Europe and the European Economic Area was 19% lower compared to the previous 10 months.
Honda, which manufactures certain battery-electric models in China, along with brands such as Mercedes, Geely, Tesla, Renault’s Dacia Spring, and smaller Chinese players like Nio and Xpeng, also experienced declines due to the tariffs. Conversely, BYD is increasing its market share in Europe and worldwide despite these challenges.
China’s EV sales saw a 76% yearly increase in February and a 35% rise for the initial two months of the year. In Europe, sales grew by 19% in February, marking the second consecutive month of double-digit growth following the implementation of EU CO2 emissions targets, with Germany experiencing a 40% increase in the first two months of 2025. North America noted a 17% rise in EV sales compared to the previous year, although reduced annual forecasts are anticipated due to political factors affecting electrification in the U.S. Additionally, Mexico’s EV market more than doubled owing to a significant influx of Chinese EV imports since last year.
In summary, China’s leadership in the electric vehicle market continues to grow despite challenges from EU tariffs on imported vehicles. While certain brands have seen significant sales drops, others like BYD are thriving. The overall trend in electric vehicle sales showcases a marked increase across various regions, underscoring the shifting dynamics in the global automotive industry towards electrification.
Original Source: www.tradingview.com
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