As EU tariffs hit, China accelerates EV purchases

13 March 2025 - 07:57 By Reuters
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The EU imposed tariffs on China-made cars at the end of October after an anti-subsidy investigation.
The EU imposed tariffs on China-made cars at the end of October after an anti-subsidy investigation.
Image: Sean Gallup/Getty Images

China in February again led purchases of electric vehicles, which increased worldwide versus a year ago, even as EU tariffs on China-made EVs reduced sales of some brands, research firm Rho Motion said on Wednesday.

Overall sales, including battery electric and plug-in hybrid vehicles, rose by 49% 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%.

The EU imposed tariffs on China-made cars at the end of October 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's sales growth of cars made in China was on average 19% lower in the months between November 2024 and January 2025 in Europe and European Economic Area, compared to the January to October 2024 period, Lester said.

Sales of Honda, which produces some battery-electric (BEV) models of the Dongfeng Honda brand in China, Mercedes, Geely, Tesla, Renault's Dacia Spring and smaller Chinese brands Nio and Xpeng, were also affected by the tariffs, 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 Chinese New Year holidays this year, China recorded a yearly increase of 76% in February, and of 35% for the first two months of the year.

Sales in Europe were up 19% in the month compared with a year earlier — the second consecutive month of double-digit growth since EU CO2 emission targets came into effect — with Germany up 40% in the first two months of 2025.

North America's EV sales grew by 17% 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, Lester said.

Mexico's EV market more than doubled due to Chinese EV imports that started “in bulk” last year, Rho Motion said.


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