China’s Continued Leadership in Electric Vehicle Sales Amid EU Tariffs

China dominated global electric vehicle sales in February, up 49% year-over-year, despite EU tariffs affecting brands like MG. European sales grew 19%, with Germany observing a robust 40% increase. BYD, unlike others, gained market share, while North American sales rose by 17% but face political challenges.

In February, China remained at the forefront of electric vehicle (EV) purchases, experiencing a worldwide increase despite the European Union’s tariffs impacting some brands. According to research firm Rho Motion, overall electric vehicle sales, inclusive of battery electric and plug-in hybrid vehicles, reached 1.2 million, reflecting a 49% year-over-year increase, although the figures were somewhat skewed by the timing of the Chinese New Year. Compared to January, however, sales had decreased by 3%.

The EU implemented tariffs on vehicles manufactured in China in late October following an anti-subsidy investigation. Charles Lester, the Data Manager at Rho Motion, noted that brands such as MG, owned by China’s SAIC, experienced significant sales declines due to the tariffs. Specifically, the sales growth for SAIC’s vehicles in the European market dropped by an average of 19% from November 2024 to January 2025, in comparison to the preceding ten months.

Tariffs also affected sales of other manufacturers, including Honda, Mercedes, Geely, Tesla, and larger Chinese brands such as Nio and Xpeng. In contrast, BYD has gained traction in Europe, achieving an increase in market share despite the challenges presented by the tariffs. Due to the Chinese New Year, China registered a 76% annual increase in sales for February, leading to a 35% rise in sales for the first two months of 2025.

Europe experienced a 19% increase in EV sales for February compared to the previous year, marking the second consecutive month of double-digit growth since the implementation of EU CO2 emission targets. Notably, Germany reported a remarkable 40% increase in sales for the first two months of 2025. In North America, EV sales rose by 17% over the same month last year; however, economic forecasts are adjusting downwards due to political restraints on electrification in the United States. Mexico’s electric vehicle market has seen substantial growth, more than doubling in size due to an influx of Chinese EV imports begun late last year.

In summary, while China has led the global increase in electric vehicle purchases notably in February, European Union tariffs have significantly affected the sales of some China-made brands. Despite these tariffs, BYD continues to prosper in the European market, gaining market share. Overall sales data indicates ongoing growth in both Europe and North America, although forecasts for the U.S. market may need to be revised due to prevailing political influences.

Original Source: www.tradingview.com