China Dominates Global EV Market Despite EU Tariff Challenges

China leads February EV purchases worldwide despite EU tariffs impacting sales for China-made brands. Total electric vehicle sales increased by 49% year-on-year, with China’s growth at 76%. EU tariffs have significantly affected brands like MG and Honda, while BYD’s market share is on the rise. In Europe, EV sales are up 19% amidst stringent CO2 regulations, and North American sales experienced a 17% increase.

In February, China once again led global electric vehicle (EV) purchases, registering a significant year-on-year increase despite the impact of European Union (EU) tariffs on China-made cars. Research firm Rho Motion reported that total EV sales, including battery electric and plug-in hybrids, rose by 49% to 1.2 million units. However, these figures are somewhat skewed due to the timing of the Chinese New Year, with sales declining by 3% from January to February.

The EU implemented tariffs on Chinese-made vehicles at the end of October following an anti-subsidy investigation. According to Rho Motion Data Manager Charles Lester, the sales of MG, owned by China’s SAIC, have been severely affected by these tariffs. Notably, sales growth for SAIC’s vehicles in Europe during the months from November 2024 to January 2025 was on average 19% lower than during the earlier ten-month period.

Various brands, including Honda, Mercedes, Geely, Tesla, Renault’s Dacia Spring, as well as smaller Chinese firms like Nio and Xpeng, have also suffered from these tariffs. Conversely, BYD has managed to increase its market share in Europe and globally despite the oppressive tariff conditions.

Owing to the Chinese New Year celebrations, sales in China surged by 76% in February and rose by 35% for the first two months of the year. In Europe, sales increased by 19% in February, marking two consecutive months of double-digit growth in alignment with newly enacted EU CO2 emission targets, with Germany boasting a 40% increase in early 2025.

In North America, EV sales climbed by 17% compared to the previous year. However, the future of U.S. EV sales may be constrained due to former President Donald Trump’s policies regarding electrification. In contrast, Mexico experienced a more than doubling of EV sales attributed to an influx of Chinese EV imports that began in bulk last year.

In summary, China’s leadership in electric vehicle purchases continues to thrive despite challenges posed by EU tariffs on its automakers. While many brands are struggling with reduced sales, BYD is notably enhancing its presence in the market. Meanwhile, the European and North American markets display varying growth rates influenced by regional policies and market dynamics.

Original Source: www.tradingview.com