Global electric vehicle (EV) and plug-in hybrid (PHEV) sales soared by 29% year-on-year in March, according to recent figures from Rho Motion, propelled primarily by strong demand in China and Europe. While growth rates stayed consistent with previous months, geopolitical factors are starting to shape regional performance, particularly in North America.

Global EV Sales Breakdown—March Overview:

• Total Global Sales (BEV + PHEV): 1.7 million units (+29% YoY)

• China: 1 million units (+36% YoY)

• Europe: 0.4 million units (+24% YoY)

• U.S. & Canada: 0.2 million units (+12% YoY)

• Rest of the World: Up 13% YoY

North America’s Slow Growth

In stark contrast to international trends, the U.S. growth rate of 12% raises concern, attributed to:

• Tariff Challenges: A 25% tariff on foreign EV imports was imposed starting April 3.

• Imported EV Vulnerability: About 39% of EV sales in the U.S. come from foreign markets.

• Battery Supply Dependence: Approximately 25% of EVs produced in the U.S. are reliant on imported battery parts.

• Policy Uncertainty: Ongoing uncertainties regarding emissions standards under the Trump administration have delayed key industry decisions.

Tesla (NASDAQ: TSLA) may face setbacks, particularly as Chinese counter-tariffs could double prices for models like the Model S and Model X sold in China.

The EU’s Alternative Approach

The European Union is evaluating potential tariff relaxations on Chinese EV imports in exchange for price floors to balance supply chains and support local automakers.

Key Growth Drivers by Region

• China: Driven by robust consumer demand and supportive domestic incentives.

• Europe: Regulatory pressures are stimulating adoption.

• U.S. & Canada: Policy uncertainties are hindering growth.

Final Insights for EV Investors

The EV momentum remains strong globally but fragmented. As Europe and China surge ahead, North America’s growth faces headwinds due to protectionism and shifting policies. Upcoming months will be critical for investors and industry players, requiring adaptability in a challenging geopolitical landscape.