Global EV Sales Slip Again as China’s Market Stalls

Sales of electric vehicles globally booked another monthly decline in February, after dipping in January, mostly on the back of a marked slowdown in purchases in China.

Europe, as usual, bucked the trend in China and North America, booking a 21% increase in EV registrations as European governments stick with incentives they see as crucial for the electrification of transport-a fundamental part of net-zero efforts.

Germany notably reconsidered the cancellation of an EV incentive scheme that the government approved two years ago, which led to a slump in sales. The cancellation was prompted by budgetary difficulties. Earlier this year, however, the Merz coalition brought back the scheme, committing some 3.5 billion euros to it over the period to 2029 in a bid to help its struggling car manufacturing industry and pursue its net-zero goals.

The current oil crisis in the Middle East could provide an additional incentive to car buyers to go electric, but on the other hand, it could have a deterring effect as higher oil prices make everything else costlier, too, extending all the way to cars.