Global EV sales rise 50% in February, but Tesla struggles

Global electric vehicle (EV) sales hit 1.2 million in February 2025, marking a 50% increase compared to the same month last year, according to data from Rho Motion, a Benchmark company. However, sales dipped 3% from January’s figures.

“It’s been a solid start to the year for EV sales globally. Much of the growth continues to come from China which is seeing a pure electric renaissance this year compared to the hybrid love affair of 2024. Despite high tariffs, their domestic brand, BYD, shows no signs of slowing down their home and international expansion,” said Rho Motion Data Manager, Charles Lester.

How did sales perform?

Total EV sales for the first two months of 2025 reached 2.4 million units, reflecting a 30% year-on-year increase.

China continues to drive global growth, with demand shifting back toward battery electric vehicles (BEVs) over plug-in hybrids (PHEVs). BYD, the country’s largest EV manufacturer, has already sold over 130,000 EVs overseas in 2025, maintaining strong momentum despite international tariffs.

Europe’s EV market has seen growth of 20% YTD, with BEVs up 29% and PHEVs only growing 2%. France is seeing a dramatic shift in consumer preference due to a new weight tax on PHEVs, leading to a 48% drop in their sales while BEV sales edged up 1%. In contrast, Germany and the UK are seeing robust BEV growth of over 40% YTD.

North America is experiencing steady EV adoption, with sales up 20% YTD. The US saw a 28% rise in BEV sales, but concerns are growing over potential changes to the Clean Vehicle Tax Credit.

The ELITE Vehicles Act (S. 541) has been introduced in Congress, aiming to eliminate federal incentives for EV purchases and charging infrastructure. Consumers are expected to take advantage of existing incentives before they are removed.

Tesla’s challenges

Tesla has faced a challenging start to 2025, with sales declining across key markets:

CEO Elon Musk’s polarising role in the President Trump’s administration is seen as the key contributing factor behind the fall, damaging the Tesla brand worldwide. An example seen recently was the city of Toronto scrapping its EV incentives specifically for new Tesla taxis and no other automakers.

What’s the outlook?

Despite regulatory uncertainties in North America and shifting consumer trends in Europe, the global EV market remains on a strong growth trajectory. China’s BEV resurgence and steady demand across key markets suggest 2025 could be another record-breaking year for electric mobility.