The number of new electric vehicle registrations worldwide fell by 11 percent in February and slightly exceeded one million. The main reason is China, where sales fell the most since the beginning of the COVID-19 pandemic, followed by the United States. Citing data from consulting firm Benchmark Mineral Intelligence (BMI), Reuters reported this today. The number of registrations fell for the second consecutive month and was the lowest for February since 2024.
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Support ends, sales decline
Governments worldwide are cutting policies aimed at supporting electric vehicle purchases. China abolished financial support for vehicle trade-ins and ended tax cuts for electric vehicle purchases at the end of last year. China is the world’s largest electric vehicle market. According to BMI, registrations of electric and hybrid vehicles in China fell by 32 percent in February to fewer than 500,000 vehicles. This was in line with the overall decline in car sales in the country. According to China’s automakers association CAAM, this fell by 34 percent year-on-year in February.
“Consumers are now very price-sensitive,” said Charles Lester, data manager at BMI. Electric vehicle sales on the North American market plummeted by 35 percent to fewer than 90,000 vehicles. Sales have been lower for the fifth consecutive month, contributed to by the end of the electric vehicle tax credit program in the United States and proposals by President Donald Trump’s administration to reduce CO2 emission standards. Trump’s policies and declining global demand for electric vehicles forced some automakers with the greatest exposure to the American market to take write-downs of more than 70 billion USD.
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Electric vehicle sales growing more slowly
The European Union has also backed away from strict emission targets. However, electric vehicle sales in Europe rose by 21 percent in February, though growth rates have slowed compared to most of last year. Electric vehicle registrations in the rest of the world increased by 78 percent to more than 180,000 vehicles. Chinese manufacturers continued to expand their presence in Asian markets and Australia to better cope with fierce competition in their home market.
Last year, global electric vehicle registrations increased by 20 percent to 20.7 million. For this year, BMI predicts that growth will slow due to easing electrification targets worldwide, and electric vehicle sales will increase by 15.7 percent to 23.9 million.
Source: CTK
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