Global registrations of electric vehicles declined by 11 percent in February, falling to just over one million units as major markets such as China and North America recorded significant drops in demand. Data released by consultancy Benchmark Mineral Intelligence indicated that the slowdown was largely driven by policy changes, reduced government incentives, and shifting consumer sentiment in key automotive markets.
China, which remains the world’s largest electric vehicle market, recorded the most significant decline. According to the data, new battery electric and plug in hybrid vehicle registrations in China fell by 32 percent year on year to fewer than 500,000 units in February. The drop coincided with the withdrawal of funding for automobile trade in programs and the expiration of tax exemptions for electric vehicle purchases at the end of last year. The decline also reflects broader weakness in China’s automotive sector, where overall car sales dropped by 34 percent during the same month, according to the China Association of Automobile Manufacturers.
The North American market also experienced a substantial contraction, with electric vehicle sales falling by 35 percent to fewer than 90,000 units. The market has now recorded five consecutive months of decline following the end of an electric vehicle tax credit scheme in the United States in September last year. Policy signals from the administration of United States President Donald Trump, including proposals to further reduce carbon dioxide emission standards, have also contributed to uncertainty in the market. Analysts note that weakening demand and policy changes have forced several major automobile manufacturers with significant exposure to the United States market to record writedowns exceeding 70 billion United States dollars.
Despite the downturn in major markets, electric vehicle demand continued to grow in other regions. Registrations in Europe increased by 21 percent during February, maintaining a moderate growth trend even as several governments reconsider emissions targets. Meanwhile, electric vehicle registrations in other global markets rose by 78 percent to more than 180,000 units. Analysts attribute this growth largely to the expansion of Chinese automobile manufacturers into emerging markets across Asia and Australia, as well as their increasing presence in Europe while competing aggressively within their domestic market.
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