China leads increased EV purchases as EU tariffs start to hit
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The European Union imposed tariffs on China-made cars at the end of October after an anti-subsidy investigation.
PHOTO: REUTERS
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BEIJING - China in February again led purchases of electric vehicles (EVs), which increased worldwide versus a year ago, even as European Union tariffs on China-made EVs reduced sales of some brands, research firm Rho Motion said on March 12.
Overall sales, including battery-electric and plug-in hybrid vehicles, rose by 49 per cent in February year on year to 1.2 million, but the researchers said the figure was distorted by the timing of Chinese New Year. Compared with January, figures were down 3 per cent.
The EU imposed tariffs on China-made cars at the end of October 2024 after an anti-subsidy investigation.
Rho Motion data manager Charles Lester said sales of MG, which is owned by China’s SAIC and was hit by some of the biggest tariffs, had fallen sharply. SAIC Motor Corp is a Chinese state-owned automobile manufacturer. SAIC’s sales growth of cars made in China was on average 19 per cent lower in the months between November 2024 and January in Europe and the European Economic Area, compared with the January to October 2024 period, Mr Lester said.
Sales of Honda, which produces some battery-electric models of the Dongfeng Honda brand in China, Mercedes, Geely, Tesla, Renault’s Dacia Spring and smaller Chinese brands Nio and Xpeng, were also impacted by the tariffs, Mr Lester said.
BYD, however, is gaining ground in Europe and increasing its market-share worldwide despite the tariffs, he said.
Because of the timing of the Chinese New Year holidays in 2025, China recorded a yearly increase of 76 per cent in February, and of 35 per cent for the first two months of the year.
Sales in Europe were up 19 per cent in the month compared with a year earlier – the second consecutive month of double-digit growth since EU carbon dioxide emission targets came into effect – with Germany up 40 per cent in the first two months of 2025.
North America’s EV sales grew by 17 per cent in the month from a year before, but US President Donald Trump’s stance towards electrification will lead to reduced yearly forecasts for the country, Mr Lester said.
Rho Motion said in a statement that Mexico’s EV market more than doubled due to Chinese EV imports that started “in bulk” in 2024. REUTERS
