Global electric vehicle (EV) sales fell for a second consecutive month in February, driven largely by a steep drop in Chinese demand, the world’s largest EV market.
According to Benchmark Mineral Intelligence, cited by Reuters, new EV and hybrid registrations in China plummeted 32% in February, falling to below 500,000 units. The decline followed the end of a government tax incentive program last year and the cancellation of trade-in subsidies, which had previously supported EV adoption.
The slowdown in China significantly impacted global figures, with worldwide EV sales dipping 11% in February to approximately 1 million vehicles—the lowest monthly total since February 2024. North America also contributed to the global decline, as EV sales fell for the fifth consecutive month, dropping 35% to fewer than 90,000 vehicles amid the rollback of incentives under the Trump-era policies.
Europe, however, stood out as a bright spot. EV registrations surged 21% in the region, supported by sustained government incentives aimed at advancing transportation electrification and achieving net-zero targets. Germany, in particular, reversed its planned cancellation of an EV incentive program, allocating €3.5 billion through 2029 to bolster both the domestic automotive industry and its climate goals.
Market analysts note that the current oil crisis in the Middle East could have a dual effect on EV adoption. While high oil prices may encourage consumers to shift toward electric cars, the broader rise in living costs could offset some of that incentive, affecting affordability and purchasing decisions.
As the EV market continues to adjust to changing government policies and global economic pressures, analysts are closely monitoring how regional differences and geopolitical events shape the future of electrified transport.
