Global registrations of electric vehicles fell 11% in February, according to data compiled by consultancy Benchmark Mineral Intelligence (BMI). The decline was led by a marked pullback in China, which recorded its largest sales fall since the early months of the COVID-19 pandemic.
China, the world’s biggest EV market, saw new registrations of battery-electric and plug-in hybrid cars fall 32% year-on-year in February, to fewer than 500,000 vehicles, BMI reported. The country has scaled back several forms of policy support that had previously encouraged EV purchases: government measures to support auto trade-ins were reduced, and a purchase tax exemption for electric vehicles expired at the end of last year.
Those domestic policy shifts occurred alongside a broader weakening in China’s auto market. The China Association of Automobile Manufacturers recorded an overall 34% drop in car sales in February, a figure consistent with BMI’s EV registration data. Charles Lester, data manager at BMI, underscored the sensitivity of buyers to price, saying, "Consumers are very price sensitive."
On a global level, EV registrations fell for a second consecutive month in February, to just over one million vehicles sold, representing the lowest February total since the same month of 2024. The North American market contracted sharply, down 35% to under 90,000 EVs sold. That region’s decline continued for a fifth straight month after the expiry of an EV tax credit scheme in the United States last September and amid proposals from the presidential administration to further relax CO2 emission standards.
Policy changes and weaker demand have had direct financial consequences for some automakers. Firms with significant exposure to the U.S. market have recorded more than $70 billion in writedowns as they contend with softer EV demand and shifting regulatory settings.
Europe presents a contrasting picture. Although some emission targets have been moderated, the continent’s EV sales still rose by 21% in February. The growth in Europe persisted despite a slower pace relative to much of last year.
The rest of the world posted strong percentage gains, with EV registrations up 78% to more than 180,000 cars. BMI noted that Chinese automakers are expanding their footprint across other Asian markets and Australia as well as in Europe, even as they face intense competition at home.
This pattern of regional divergence - steep declines in China and North America versus continued expansion in parts of Europe and other markets - underscores how changes in government incentives and consumer price sensitivity are influencing demand for electric cars globally.