Global electric vehicle sales increase by 40% in March despite trade conflicts

The global electric vehicle (EV) market experienced a significant surge in sales in March, reaching 1.7 million units and totaling 4.1 million units for the first quarter of 2025. This growth represents a 29% year-over-year increase and a remarkable 40% month-over-month jump from February.

Europe has seen a notable 22% increase in EV sales year-to-date, driven primarily by battery-electric vehicles (BEVs) which saw a 27% rise. Germany experienced a 37% increase in BEV sales, Italy surged by 64%, and the UK achieved a milestone with over 100,000 EVs sold in March alone, setting a new record due to heightened vehicle registrations. France, however, experienced an 18% decline in EV sales, largely affected by reduced government subsidies, with BEV sales dropping by 5% and plug-in hybrids (PHEVs) plummeting by 47%.

In North America, EV sales rose by 16% in the first quarter of 2025. The market’s future remains uncertain, primarily due to the recent implementation of significant tariffs by Donald Trump. The 25% tariff on auto imports from Canada and Mexico in February and a broader tariff in March affecting all auto imports are expected to drive consumer prices up. As approximately 40% of US EV sales are imported from countries like Japan, Korea, and Mexico, these tariffs could have a substantial impact on market affordability and dynamics.

China, maintaining its position as the global leader in EV adoption, witnessed a 36% increase in EV sales year-over-year in the first quarter, nearly reaching 1 million units in March alone. This achievement marks a milestone previously accomplished in August 2024. While the US-China tariff turmoil may have minimal effects on China due to limited cross-border EV sales, Tesla’s Model X and Model S, exported to China from the US, could potentially see their prices almost double due to tariffs.

Charles Lester, Rho Motion’s data manager, commented on the strong global growth of the EV market this quarter amid turbulent times. Lester noted the record-breaking month for countries like the UK and the challenges faced by the electric vehicle industry in competing with internal combustion engine (ICE) vehicles on cost.

The EV sales figures for Q1 2025 compared to Q1 2024 show positive growth across the globe, with China leading at 2.4 million units, Europe following with 0.9 million units, North America at 0.5 million units, and the Rest of the World with 0.3 million units, marking year-over-year increases between 16% and 36%.

Despite the challenges posed by tariffs, reduced government subsidies, and market uncertainties, the electric vehicle market continues to demonstrate significant growth, with sales on the rise month-over-month, quarter-over-quarter, and year-over-year.