Worldwide sales of electric and plug-in hybrid vehicles experienced a 29% increase year-on-year in March, driven by growth in China and Europe. However, the expansion of EV sales in North America faced challenges due to former U.S. President Donald Trump’s approach to emissions regulations and uncertainties concerning tariffs, according to data released on Tuesday.
According to Rho Motion data manager Charles Lester, U.S. tariffs on imported vehicles may compel domestic automakers operating in nearby Mexico to reconsider their pricing strategies or relocate production. Approximately 39% of EVs sold in the U.S. are imports, while about 25% of domestically manufactured EVs utilize imported batteries.
Meanwhile, Chinese retaliatory tariffs could impact the pricing of Tesla’s U.S.-manufactured models, potentially resulting in nearly a twofold increase for the Model S and Model X cars in China, Lester highlighted.
The recent sales figures align with the upward trend seen in preceding months, contributing to a 29% rise in sales during the first quarter.
Significance
The U.S. initiated a 25% tariff on foreign auto imports starting April 3, which Trump asserts will bolster domestic manufacturing and create jobs.
Experts have raised concerns that these tariffs might disrupt global supply chains, leading to price hikes and reduced sales in the U.S. market.
In light of the trade challenges, the European Union recently consented to explore the possibility of easing tariffs on EVs manufactured in China, aiming to establish minimum pricing for these vehicles instead.
Sales Statistics
Global sales of battery-electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) reached 1.7 million units in March, as per Rho Motion data. Chinese sales surged by 36% compared to the same month in 2024, nearing 1 million vehicles.
Europe saw a 24% annual growth in registrations, with 0.4 million cars sold, attributed to emission regulations fostering BEV sales in key markets such as Germany, Italy, and the UK, according to Lester.
In the United States and Canada, EV sales climbed by 12% to 0.2 million in March.
Excluding these regions, global sales for March rose by 13%.
A potential easing of the EU’s 2025 CO2 emissions targets “definitely provides some relief for automakers in Europe,” Lester remarked.
“Many investments and the rollout of new models remain on track. This financial support is beneficial for the auto industry,” he added.
Governments across the globe are implementing measures to promote EV adoption, yet trade disputes and slowing automobile markets could hint at factory closures and significant job losses.
To stimulate EV sales and support economic recovery, China renewed its auto trade-in subsidies through 2025 as part of an expanded consumer trade-in initiative introduced in January.