China Dominates Global EV Market Amid EU Tariffs and Sales Trends

China leads the EV market with a 49% increase in sales in February, despite EU tariffs hitting some brands like MG. Overall, sales were up, influenced by the Chinese New Year, while European and North American markets also showed growth. However, political pressures may challenge future forecasts in the U.S.

In February, China again led global electric vehicle (EV) purchases, with total sales of battery electric and plug-in hybrid vehicles rising by 49% year-on-year to 1.2 million. However, this figure was influenced by the Chinese New Year period. Compared to January, sales experienced a slight decline of 3%.

The European Union (EU) has imposed tariffs on China-made EVs since October, affecting sales significantly. Rho Motion’s data indicates that brands like MG, owned by China’s SAIC, experienced sharp declines in sales due to these tariffs. Specifically, SAIC’s sales growth in Europe dropped by 19% on average between November 2024 and January 2025.

Multiple automotive manufacturers, including Honda, Mercedes, Geely, and Tesla, reported sales declines as a result of these tariffs. Conversely, BYD has managed to increase its market presence in Europe and other regions despite the tariff implications.

Due to the timing of its holidays, China noted a remarkable 76% increase in sales in February alone, contributing to a 35% rise for the first two months of 2025. Meanwhile, European sales also improved by 19%, marking the second month of double-digit growth following EU CO2 emission regulations.

In North America, EV sales grew by 17%, yet political factors may exacerbate future growth forecasts, according to Rho Motion. Mexico has witnessed a substantial surge in its EV market, nearly doubling due to substantial Chinese EV imports starting last year.

China remains a dominant player in the EV market, with significant increases in sales despite EU tariffs impacting some brands. While companies like BYD are capitalizing on this situation to expand their market share, others, affected by tariffs, are experiencing declines. The ongoing developments in the EU and North America indicate a complex landscape for electric vehicle sales moving forward.

Original Source: www.tradingview.com