China Dominates Electric Vehicle Purchases Despite EU Tariffs

In February, China led global EV purchases with a 49% year-on-year increase, despite EU tariffs affecting certain brands. Sales of MG and other manufacturers suffered post-tariff implementation, while BYD gained market share. European sales rose by 19%, and Mexico’s EV market doubled, indicating shifting dynamics in the automotive sector.

In February, China dominated the global electric vehicle (EV) market, seeing a significant increase in purchases even amidst European Union (EU) tariffs on Chinese-made cars. According to research firm Rho Motion, worldwide sales, including both battery electric and plug-in hybrid vehicles, surged by 49% year-on-year, totaling 1.2 million units. However, researchers indicated that these numbers were affected by the timing of the Chinese New Year, as sales dropped by 3% compared to January.

The EU implemented tariffs on Chinese-manufactured vehicles following an anti-subsidy investigation in October. Rho Motion’s Data Manager, Charles Lester, expressed concern about the impact these tariffs have had on specific brands, particularly MG, owned by China’s SAIC. Sales for MG have significantly declined, with 19% lower growth in the months from November 2024 to January 2025 compared to the preceding October.

Other brands such as Honda, Mercedes, Geely, Tesla, and several smaller Chinese manufacturers, including Nio and Xpeng, have also faced negative effects from EU tariffs. Conversely, BYD has been successfully increasing its market share in Europe and globally despite the tariffs, indicating a potential shift in consumer preference.

February saw a 76% increase in EV sales in China and a 35% rise over the first two months of the year. In Europe, sales grew by 19% year-on-year, marking a second consecutive month of double-digit growth, particularly evident in Germany, which experienced a growth rate of 40%. Meanwhile, North America reported a 17% increase in EV sales, though future forecasts may diminish due to political factors surrounding electrification.

Additionally, Mexico’s EV market doubled, attributed to significant imports of Chinese vehicles that began last year. This trend exemplifies shifting dynamics in the global EV market, driven by changing regulations and consumer preferences.

In summary, while China leads the global electric vehicle market, EU tariffs are significantly affecting certain brands’ sales, particularly MG. Despite the challenges faced by many manufacturers, BYD demonstrates resilience by gaining market share. The growth observed in regions such as Europe and Mexico underscores the evolving landscape of EV adoption worldwide, despite potential drawbacks in North America. The future of the electric vehicle market remains shaped by regulatory pressures and consumer demands.

Original Source: www.tradingview.com