Global EV Sales Slump in February as China Records Steepest Decline Since COVID-19

Global electric vehicle registrations dropped 11% in February, marking the second consecutive month of decline, according to data from Benchmark Mineral Intelligence (BMI). Worldwide sales barely cleared one million units — the weakest February performance since 2024 — as policy reversals and shifting consumer sentiment weighed heavily on demand across major markets.

China, the world's largest EV market, bore the brunt of the slowdown. New battery-electric and plug-in hybrid registrations plunged 32% year-on-year to fewer than 500,000 vehicles, the sharpest monthly contraction since the early days of the COVID-19 pandemic. The decline mirrors a broader 34% fall in total Chinese car sales reported by the China Association of Automobile Manufacturers. Analysts point to the expiration of EV purchase tax exemptions at the end of last year and the withdrawal of government trade-in subsidies as key drivers. "Consumers are very price sensitive," noted BMI data manager Charles Lester.

North America fared no better, with registrations falling 35% to under 90,000 units — a fifth straight monthly drop. The slide follows the September expiration of federal EV tax credits in the United States, compounded by the Trump administration's push to roll back CO2 emission standards. These headwinds have already forced automakers with heavy U.S. exposure to collectively absorb more than $70 billion in asset writedowns.

Europe offered a rare bright spot, posting 21% growth in EV sales despite easing its own emissions targets. Meanwhile, the rest of the world surged 78%, topping 180,000 registrations, as Chinese automakers aggressively expanded into Southeast Asian markets, Australia, and Europe to offset intensifying competition at home.

The uneven global picture underscores how deeply intertwined EV adoption is with government policy — and how quickly momentum can reverse when those incentives disappear.