LONDON, UK: Electric vehicle sales surged globally in March, with strong growth in China and Europe offsetting slower momentum in North America, as geopolitical tensions and trade policies added new layers of uncertainty for automakers.
According to research firm Rho Motion, sales of battery-electric and plug-in hybrid vehicles rose 29 percent year-on-year last month, continuing the same pace of growth seen in the first quarter.
China led the gains with a 36 percent rise to nearly 1 million vehicles sold. Europe followed with a 24 percent jump in registrations, helped by emissions regulations in key markets like Italy and Britain. In contrast, North America lagged behind, with sales in the U.S. and Canada climbing just 12 percent to 200,000 vehicles.
Rho Motion data manager Charles Lester said EV growth in North America has been affected by President Donald Trump's approach to emissions policy and tariff threats, adding that 39 percent of EVs sold in the U.S. are imported and around a quarter of locally assembled EVs rely on foreign batteries.
New U.S. tariffs of 25 percent on foreign car imports took effect on April 3. Trump has said the move will protect domestic manufacturing and jobs. However, analysts warn the duties will disrupt supply chains and drive up prices, particularly for vehicles imported from Mexico or using non-U.S. components.
"U.S. tariffs on car imports may force some automakers to readjust prices or move production," Lester said. He also noted that Chinese countermeasures could lead to price spikes for Tesla's U.S.-made vehicles sold in China, especially the Model S and Model X, which could nearly double in cost under new tariff scenarios.
In response to the growing uncertainty, the European Union has begun discussions with China to shift from tariffs to a minimum price model for Chinese-built EVs, potentially easing tensions in the sector.
"A proposed relaxation of the EU's 2025 CO2 emissions targets certainly gives the automakers in Europe some respite," Lester said. "A lot of the investment, a lot of the planned model releases are still in place. It just helps the automakers financially."
Global EV and plug-in hybrid sales for March reached 1.7 million vehicles. Sales in other markets outside the U.S., Europe, and China rose 13 percent.
