Global EV sales fall 11% in February on China slowdown
Synopsis
Global EV sales fell 11% in February as a sharp decline in China offset growth in Europe and other markets, according to Benchmark Mineral Intelligence.
The United States has launched trade investigations into 60 countries over alleged failures to prevent forced labor in supply chains, the Office of the US Trade Representative said. The probes under Section 301 of the Trade Act could lead to new trade measures as the Trump administration seeks to rebuild tariff pressure after a court ruling invalidated its earlier global tariffs.
Key highlights
- US launches Section 301 investigations into 60 economies
- Probe focuses on failure to curb forced labor in supply chains
- Countries under scrutiny include India, EU, UK, Canada and China
- Move comes after Supreme Court struck down Trump’s global tariffs
- USTR aims to complete investigations before temporary tariffs expire in July
China slump weighs on global EV market
Global EV registrations declined 11% in February, according to data released by Benchmark Mineral Intelligence (BMI) on Friday.
The fall was largely driven by a sharp slowdown in China, the world’s largest EV market, where registrations recorded their largest drop since early 2020 during the onset of the COVID-19 pandemic.
Policy changes in China have weakened demand. The government recently ended funding for auto trade-in incentives, while a tax exemption on EV purchases expired at the end of last year.
These measures had previously helped fuel rapid EV adoption in the country.
Governments scale back EV incentives
The decline in global EV sales reflects a broader shift in policy support for electric vehicles.
Several governments worldwide have begun scaling back programmes designed to encourage EV purchases as budget pressures increase and policymakers reassess subsidy programmes.
In the United States, policy changes under President Donald Trump’s administration and cooling demand have added pressure on automakers heavily exposed to the market.
The weaker outlook has forced some car manufacturers to record more than $70 billion in writedowns, reflecting lower expected returns on EV investments.
Europe maintains growth despite policy shifts
Despite the global slowdown, Europe’s EV market continued to grow in February.
Registrations across the continent increased 21% year-on-year, although the pace of growth has slowed compared with much of last year.
Europe has also begun reassessing its climate policies, with some governments easing vehicle emission targets amid industry concerns over the cost and pace of the energy transition.
Even so, the region remains one of the key drivers of EV adoption outside China.
Other markets show strong expansion
Outside the major EV markets of China, Europe and the United States, electric vehicle sales showed strong momentum.
EV registrations in the rest of the world surged 78% to more than 180,000 vehicles in February, according to the BMI data.
Chinese automakers have been expanding aggressively into Asian markets, Australia and Europe, increasing their presence internationally while facing intense competition at home.
This expansion has helped sustain global EV growth in emerging markets despite weakness in China.
Global EV sales outlook
The outlook for global EV sales will depend largely on how governments balance climate policies with economic pressures.
While policy support has softened in some markets, continued expansion by Chinese automakers and steady demand growth in emerging markets could support EV adoption in the longer term.
However, the recent slowdown suggests that government incentives and regulatory policies remain key drivers of global electric vehicle demand.
FAQs
Q1: Why did global EV sales fall in February?
Global EV sales declined mainly due to a sharp drop in China, where incentives such as tax exemptions and trade-in subsidies expired.
Q2: How much did global EV sales decline?
According to Benchmark Mineral Intelligence, global EV registrations fell 11% in February.
Q3: Did EV sales decline everywhere?
No. Europe recorded a 21% increase, while EV registrations in other regions rose 78%.
Q4: What could influence EV sales going forward?
Future EV demand will depend on government policies, subsidies, emission targets and automakers’ expansion into new markets.
Follow Inspirepreneur Magazine for the business news.
I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
