As the Chinese EV price wars is ongoing, the EV market in China is still thriving
Well at this point it seems like even several generations from now, the Chinese electric vehicle (EV) price wars will still be ongoing. This has also led to many other countries across the globe forcing tariffs on EVs made in China as their prices have dipped so low that other countries’ EVs are unable to compete anymore.
To make matters worse, in February 2025, China once again topped the global EV market, marking a significant rise in purchases despite challenges from EU tariffs on China-made EVs, according to research firm Rho Motion. Worldwide EV sales, including both BEVs and PHEVs, saw a notable increase of 49 percent compared to February 2024, reaching 1.2 million units.
Moreover, Rho Motion indicated that the figures were influenced by the timing of the Chinese New Year, which often skews sales data. When compared to January 2025, overall sales declined by 3 percent. The EU imposed tariffs on Chinese-made vehicles in late October 2024 following an anti-subsidy investigation, which had a significant impact on certain brands.
Charles Lester, Data Manager at Rho Motion, noted that the sales of MG, a brand owned by China’s SAIC, were particularly affected, with some of the largest tariff increases causing sharp declines in sales. Between November 2024 and January 2025, sales of SAIC’s Chinese-made cars in Europe were on average 19 percent lower than during the previous period.
Other manufacturers, including Honda, Mercedes, Geely, Tesla and Renault’s Dacia Spring, as well as smaller Chinese EV brands like Nio and Xpeng, also saw their European sales negatively impacted by the tariffs. However, Chinese EV giant BYD is successfully increasing its market share, both in Europe and globally, despite these trade barriers.
On top of that, China’s EV market saw a staggering 76 percent year-on-year increase in February, with a 35 percent rise in sales over the first two months of 2025. European sales also saw strong growth, rising 19 percent in February compared to the previous year.
This marked the second consecutive month of double-digit growth, attributed to the EU’s stricter CO2 emission targets, which have been in effect since the start of 2025. Germany saw a 40 percent increase in sales during the first two months of the year.
North America’s EV market experienced a 17 percent year-on-year increase in February 2025, although concerns about U.S. policies on electrification under Trump may reduce yearly forecasts. In Mexico, the EV market more than doubled in 2025, driven largely by the influx of Chinese-made EVs that began arriving in bulk last year, according to Rho Motion.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
