Global electric vehicle sales fell 11 percent in February

Global electric vehicle (EV) registrations experienced an 11% decline in February, marking a significant downturn led by a sharp contraction in the Chinese market. According to data from Benchmark Mineral Intelligence (BMI), this represents the largest sales drop in China since the early stages of the COVID-19 pandemic in 2020. The world's largest EV market saw registrations for battery-electric and plug-in hybrid vehicles fall by 32% year-on-year, totaling fewer than 500,000 units. This decline coincides with the expiration of a national EV tax exemption at the end of last year and the cessation of government funding for auto trade-in programs. The downturn mirrors a broader 34% decrease in total automotive sales reported by the China Association of Automobile Manufacturers. BMI data manager Charles Lester noted the impact of shifting economic incentives on buyer behavior. > "Consumers are very price sensitive." Total worldwide registrations dropped for the second consecutive month to just over one million units, the lowest volume recorded since February 2024. The United States and the broader North American market faced a 35% contraction, with sales dipping below 90,000 units. This marks the fifth straight month of decline following the termination of a federal EV tax credit scheme last September and new policy proposals from the administration of President Donald Trump aimed at relaxing carbon emission standards. The shifting regulatory landscape and cooling global demand have led several major automakers with significant exposure to the American market to record writedowns exceeding $70 billion. While Europe has also adjusted its emission targets, the region managed a 21% increase in EV sales during February, though the growth rate has slowed compared to previous years. In contrast, EV registrations in the rest of the world surged by 78%, exceeding 180,000 vehicles. This growth is largely attributed to Chinese manufacturers expanding their footprint across Asian markets, Australia, and Europe, while simultaneously navigating intense competition within their home market.