Worldwide sales of electric and plug-in hybrid vehicles increased by 29% year-on-year in March, fueled by growth in China and Europe. In contrast, the adoption of electric vehicles in North America faced obstacles due to former U.S. President Donald Trump’s position on emissions regulations and uncertainties surrounding tariffs, as reported on Tuesday.
According to data manager Charles Lester from Rho Motion, U.S. tariffs on car imports could compel some American manufacturers that produce in Mexico to alter their pricing strategies or relocate their production facilities. He noted that approximately 39% of electric vehicles sold in the U.S. are imported, while around 25% of domestically manufactured EVs utilize imported batteries.
Moreover, counter-tariffs from China could impact the pricing of Tesla’s models made in the U.S., potentially leading to nearly a doubling of prices for the Model S and Model X in the Chinese market, Lester indicated.
The recent figures align with previous months’ growth, contributing to a 29% rise in total sales for the first quarter.
Significance of the Data
The U.S. began implementing a 25% tariff on foreign automotive imports as of April 3. Donald Trump asserts that this move will stimulate American manufacturing and job creation.
Analysts have cautioned that these tariffs could disrupt global supply chains, resulting in increased prices and diminished sales within the country.
In response to trade disruptions, the European Union recently decided to consider easing tariffs on electric vehicles manufactured in China, with the intention of establishing minimum price thresholds for such vehicles.
Sales Statistics
According to Rho Motion data, global sales of battery-electric vehicles (BEV) and plug-in hybrids (PHEV) reached 1.7 million units in March. Sales in China saw a 36% increase compared to the same month in 2024, approaching 1 million vehicles.
Europe experienced a 24% year-on-year rise in registrations, totaling 0.4 million cars sold, as emission regulations and targets bolstered BEV sales across key markets including Germany, Italy, and the UK, Lester noted.
In the United States and Canada, sales of electric vehicles rose by 12% to 0.2 million units in March.
Meanwhile, sales in other regions globally grew by 13% in March.
A tentative easing of the EU’s 2025 CO2 emissions regulations “definitely provides some relief to automakers in Europe,” Lester commented.
“Much of the investment and planned model launches remain intact. This just offers additional financial support to manufacturers,” he added.
Countries around the world are introducing measures to promote the adoption of electric vehicles, although trade tensions and a slowdown in the automotive market could potentially lead to factory closures and significant job losses.
In January, China extended its auto trade-in incentives through 2025 as part of an enhanced consumer trade-in program aimed at preventing a decline in electric vehicle sales while stimulating economic growth.