Global EV sales climb despite North American slowdown

[WORLD] Global sales of electric and plug-in hybrid vehicles surged 29 per cent year-on-year in April, driven by consistent growth in China and Europe, even as geopolitical tensions loom over the market. In contrast, North America posted its first decline since September, according to data released on May 14.

China and Europe continue to chart a path of steady expansion in the electric vehicle (EV) sector, albeit for different reasons. China benefits from sustained domestic demand and ongoing government subsidies, while Europe’s gains are underpinned by strict emissions targets and strong consumer adoption. North America’s dip reflects broader uncertainty, shaped by inconsistent policy support and concerns around charging infrastructure.

In Europe, legacy carmakers pushing to meet EU carbon targets outperformed Tesla in EV sales. Tesla’s market share continues to erode ahead of a refresh of its flagship Model Y, noted Charles Lester, data manager at Rho Motion.

Analysts attribute Tesla’s deceleration in part to rising competition from European manufacturers like Volkswagen and Stellantis, which have rolled out more affordable electric options. Chinese automakers including BYD and NIO are also making inroads into the European market, intensifying the competitive landscape.

Back in China, domestic EV manufacturers saw strong demand for battery-powered vehicles, while plug-in hybrids gained momentum in overseas markets, Lester added.

Meanwhile, U.S. import tariffs—set at 25 per cent—have clouded the outlook for global automakers operating in the world’s second-largest auto market. Many manufacturers have withdrawn their 2025 forecasts amid mounting uncertainty.

European and Asian firms have been especially affected, prompting some to consider establishing local production in the U.S. to sidestep the trade barriers. However, the cost and complexity of setting up new facilities have left several automakers in a holding pattern as they await clearer post-election policy signals.

In North America, the EV slowdown has also been influenced by President Donald Trump’s regulatory stance and tariff unpredictability. While recent trade agreements with the UK and China have had limited impact on EV sales, they represent encouraging signs ahead of potential talks with South Korea, Japan, and the EU, Lester said.

Global sales of battery-electric and plug-in hybrid vehicles reached 1.5 million in April, according to Rho Motion. China led the charge, with a 32 per cent increase year-on-year, totalling 0.9 million units sold.

China’s dominance is reinforced by its control of key battery resources and large-scale manufacturing capabilities, accounting for nearly 60 per cent of global EV output. This has prompted growing concern in Western countries about dependence on Chinese supply chains and spurred calls to accelerate domestic production efforts.

Europe posted a 35 per cent year-on-year rise, registering 0.3 million vehicles sold. North America, however, saw sales slip 5.6 per cent to just over 100,000 units. Elsewhere, the market remained buoyant, with April sales in other regions jumping 50 per cent. “Plug-in hybrids have nearly doubled so far this year in these markets, largely due to Chinese exports,” Lester noted.

Globally, governments are pushing forward with policies to support EV adoption. Yet, experts warn that persistent trade frictions and a cooling auto market may lead to factory shutdowns and potential job losses.

As geopolitical tensions reshape the automotive landscape, industry analysts foresee a shift toward more regionalized supply chains. While such a move may bolster self-reliance, it could also hinder the pace of EV adoption by driving up costs and complicating logistics.

In a bid to sustain momentum, China extended its vehicle trade-in subsidies into 2025 as part of a broader effort to support consumer spending and stimulate economic growth.