Global EV Sales Plummet Amidst China's Steepest Decline

Global electric vehicle (EV) registrations fell by 11% in February, totaling just over one million vehicles sold. This marks the lowest volume since February 2024 and the second consecutive month of decline. China's market, the largest globally, experienced a substantial 32% year-on-year drop in EV registrations, the most severe since the COVID-19 pandemic began in early 2020.

This worldwide decrease is partly due to the retraction of government policies that previously encouraged EV purchases. In China, incentives like auto-trade-in funding were withdrawn, and a crucial tax exemption for EV purchases expired at the end of last year. Consequently, consumer price sensitivity has increased significantly.

North America saw a 35% contraction in EV sales, continuing a five-month downward trend. This is linked to the end of a US tax credit scheme in September and proposed reductions in emission standards. Despite these challenges, Europe's EV sales grew by 21% in February, though at a slower pace than in previous periods. Meanwhile, EV registrations in other parts of the world surged by 78%, driven by Chinese automakers expanding into new markets.