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Updated April 15th 2025, 18:05 IST
EV Boom Ignites: Global Sales Soar 29% to 1.7 Million in March Despite Trade Turmoil
According to data from Rho Motion, around 1.7 million electric vehicles were sold worldwide in March.
Global sales of electric and plug-in hybrid vehicles rose 29% in March 2025 compared to the same month last year, largely fueled by rising demand in China and Europe. Growth in the U.S. and Canada was more modest due to trade tensions and political uncertainty.
According to data from Rho Motion, around 1.7 million electric vehicles were sold worldwide in March. China led the market with nearly 1 million sales—a 36% increase year-on-year. Europe followed with a 24% rise, selling about 400,000 EVs. This growth was supported by stricter emission norms in countries like Germany, Italy, and the UK. Meanwhile, North America recorded a 12% increase, reaching around 200,000 units.
Trade policies are creating challenges for U.S. automakers. Tariffs on imported vehicles and batteries are pushing up production costs, especially for companies with operations in Mexico or those relying on overseas parts. Tesla could also be hit by Chinese counter-tariffs, which may almost double the price of its Model S and Model X cars sold in China.
To reduce trade friction, the European Union is considering easing tariffs on Chinese-made EVs. Instead of flat import duties, the EU may set minimum prices for these vehicles.
Despite these challenges, European carmakers are continuing with their EV plans. A possible relaxation of upcoming EU emissions targets could offer short-term relief to manufacturers, according to Charles Lester of Rho Motion.
On the other side, China has extended its car trade-in subsidy program through 2025 to keep EV sales strong and support the economy.
India Sees Sharp Rise in EV Sales
In India, electric vehicle sales jumped significantly in March 2025. According to FADA data, total EV registrations stood at 2,03,253 units, up from 1,39,938 units in February.
Electric two-wheeler (E2W) sales saw the biggest jump, climbing from 76,583 units in February to 1,30,375 units in March — the highest monthly total so far.
Electric car sales also grew steadily, with 12,356 units sold in March 2025, compared to 9,792 during the same month last year — a 26% year-on-year increase.
Published April 15th 2025, 18:05 IST