Market Analysis

EU Tariffs Weigh on Some Brands as China Dominates EV Sales Surge

Amos Simanungkalit · 12 Mar39.7K Views

Image Credit: Reuters

China once again led global electric vehicle (EV) purchases in February, despite European Union tariffs on China-made EVs, which slowed sales for some brands, according to research firm Rho Motion.

Total global sales of electric vehicles, including both battery electric and plug-in hybrids, rose by 49% year-on-year to 1.2 million units in February. However, this figure was partly influenced by the timing of the Chinese New Year.

The EU imposed tariffs on China-made cars in late October following an anti-subsidy investigation, which led to a sharp decline in sales for brands like MG (owned by China's SAIC) that were heavily impacted by the tariffs.

Rho Motion's Charles Lester noted that SAIC's sales growth for Chinese-made cars in Europe dropped by an average of 19% between November 2024 and January 2025 compared to the period before the tariffs. Other brands like Honda (which produces some BEVs in China), Mercedes, Geely, Tesla, Renault's Dacia Spring, and Chinese brands Nio and Xpeng also saw sales declines due to the tariffs.

In contrast, BYD is expanding its market share in Europe and worldwide, despite the tariff impacts.

China’s EV sales surged by 76% in February, with a 35% increase in the first two months of the year. European sales grew by 19% in February, marking the second consecutive month of double-digit growth since the EU's CO2 emission targets were implemented. Germany saw a 40% increase in the first two months of 2025.

North American sales grew by 17% year-on-year in February, but President Trump's stance on electrification is expected to lower yearly forecasts for the region. Meanwhile, Mexico's EV market more than doubled due to increased imports of Chinese EVs, which began in bulk last year.