Global sales of electric vehicles fell for the second straight month in February, weighed down by a sharp drop in demand in China and North America, according to new data from consultancy Benchmark Mineral Intelligence reported by Reuters.
Worldwide registrations of battery-electric and plug-in hybrid cars dropped 11% year-on-year to just over 1 million vehicles, marking the lowest level for February since 2024.
Global EV market slowdown
The decline was largely driven by China, the world’s biggest electric vehicle market, which recorded its steepest fall in EV sales since the early months of the COVID-19 pandemic in 2020.
Registrations of electric vehicles in China dropped 32% year-on-year to fewer than 500,000 vehicles in February. The decline closely mirrored the broader car market in the country, where total vehicle sales fell 34%, according to the China Association of Automobile Manufacturers.
Analysts say the slowdown reflects the removal of several government incentives. Funding for vehicle trade-in programs has been withdrawn, and a tax exemption for EV purchases expired at the end of last year, making buyers more cautious.
“Consumers are very price sensitive,” said Charles Lester, data manager at Benchmark Mineral Intelligence.
North America also contracts
The North American EV market saw an even steeper decline.
Sales in the United States and Canada fell 35% to under 90,000 vehicles, marking the fifth consecutive month of contraction.
The drop follows the end of a U.S. tax credit program for electric vehicles last September and policy proposals from President Donald Trump’s administration to loosen carbon-emission standards for vehicles.
Combined with weaker global demand, the shift has forced several automakers heavily exposed to the U.S. market to record more than $70 billion in write-downs related to electric vehicle investments.
Europe and emerging markets still growing
Not all regions experienced declines.
EV registrations in Europe increased 21% in February, continuing growth despite a slower pace compared with the strong expansion seen in previous years.
Meanwhile, the rest of the world recorded the fastest growth, with EV sales jumping 78% to more than 180,000 vehicles.
Much of that growth is being driven by Chinese automakers expanding into markets across Asia, Australia and Europe, even as competition intensifies in their domestic market.
Big picture
The latest figures highlight a more uneven global transition toward electric mobility. While some regions continue to adopt EVs rapidly, policy changes and price sensitivity in major markets such as China and the United States are beginning to slow the pace of growth.
If the trend continues, analysts expect automakers to rethink pricing strategies and production plans as the industry adjusts to a less predictable demand cycle.