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The global electric vehicle (EV) market continued its dynamic evolution in February 2025, navigating seasonal fluctuations and regional policy shifts while maintaining a trajectory of long-term growth. Early data and industry forecasts suggest that worldwide sales of fully electric and plug-in hybrid vehicles reached approximately 1.2 million units in February, reflecting a year-over-year increase of around 15% compared to February 2024. Though this figure marks a decline from January’s 1.3 million units—attributed largely to seasonal factors like the Chinese New Year—the numbers underscore a resilient industry poised for a transformative year. Here’s a regional breakdown of how the EV market performed in February 2025.
China: A Post-New Year Dip with Strong Foundations
China, the world’s EV powerhouse, saw sales drop to an estimated 650,000 units in February 2025, down roughly 40% from January’s 1.1 million, according to preliminary figures from industry analysts like Rho Motion and posts on X. This decline aligns with expectations, as the Chinese New Year—falling primarily in February this year—typically slows automotive sales due to holiday closures and reduced consumer activity. Year-over-year, however, sales grew by about 10% from February 2024, buoyed by robust government incentives, including extended trade-in subsidies offering up to 10,000 yuan ($1,400 USD) for swapping older vehicles for EVs.
BYD continued to dominate, reportedly selling over 300,000 units in February, a staggering 160% increase from the same month last year, driven by its popular plug-in hybrid (PHEV) models with range-extender technology. Tesla, on the other hand, faced headwinds, with sales dipping to around 30,000 units—a 49% drop year-over-year—marking its lowest monthly total in China since August 2022. Analysts attribute this to intensified competition and Tesla’s focus on export markets. Despite the monthly dip, China’s annual forecast remains strong, with Rho Motion projecting 12.9 million EV sales for 2025, a 17% rise from 2024.
Europe: Steady Growth Amid Regulatory Push
In Europe (including the EU, EFTA, and UK), EV sales for February 2025 are estimated at 230,000 units, a 20% increase from February 2024 but a slight 8% decline from January’s 250,000. The year-over-year growth reflects the impact of stricter CO2 emissions standards that took effect in 2025, pushing automakers to boost EV offerings to avoid fines. The UK solidified its position as Europe’s battery-electric vehicle (BEV) leader, overtaking Germany in 2024 and maintaining momentum with policies like the Zero Emission Vehicle (ZEV) mandate.
Germany saw a notable 35% year-over-year sales spike in February, rebounding from subsidy cuts in 2024, while France experienced a 10% drop, likely due to a new weight tax on PHEVs deterring buyers after a December rush. Hybrid-electric vehicles (HEVs) also gained traction, capturing nearly 35% of the EU market in January—a trend likely sustained into February. Europe’s full-year outlook remains optimistic, with forecasts of 3.5 million units sold in 2025, up 15% from 2024, per Rho Motion.
United States and Canada: Policy Uncertainty Looms
North America recorded approximately 140,000 EV sales in February 2025, up 20% from February 2024 but flat compared to January’s 130,000. The U.S. market, bolstered by the $7,500 federal tax credit, saw BEVs maintain a 9% market share, consistent with January, according to S&P Global Mobility. Tesla’s performance remained a wildcard, with some sources suggesting a 20% sales dip in February due to competitive pricing pressures from rivals like Ford and GM, though official figures are pending.
Canada’s sales grew steadily, supported by provincial incentives and a national target of 20% zero-emission vehicle sales by 2026. However, uncertainty surrounds the U.S. market as the incoming Trump administration hints at potential rollbacks of EV incentives, which could temper growth later in 2025. Still, S&P Global Mobility predicts 2.1 million EV sales for the region in 2025, a 16% increase from 2024.
Rest of the World: Emerging Markets Shine
EV sales in the rest of the world reached an estimated 180,000 units in February 2025, a remarkable 45% jump from February 2024. Markets like India, Brazil, and Thailand led the charge, with India doubling its EV share to 7.5% by year-end, per S&P Global Mobility forecasts. Low-cost models and expanding charging infrastructure fueled this growth, though volumes remain small compared to major markets. Rho Motion’s projection of 1.6 million units for these regions in 2025 highlights their rising significance.
Looking Ahead: A Transformative Year
February 2025’s global EV sales reflect a market adapting to seasonal and policy-driven ebbs and flows while maintaining upward momentum. With full-year projections ranging from 15.1 million (S&P Global Mobility) to over 20 million units (Rho Motion), the industry is on pace to surpass 2024’s record 17.1 million. Key drivers—China’s subsidies, Europe’s emissions rules, and emerging market adoption—will shape the trajectory, though U.S. policy shifts could introduce volatility. As automakers roll out more affordable models and charging networks expand, 2025 promises to solidify EVs as a cornerstone of the global automotive landscape.
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