In recent months, we have seen that the main three markets—China, Europe, and North America—have different growth rates. According to EV research house Rho Motion, over five million plug-ins were bought globally during the first five months of the year, up 20% year over year, including 1.3 million in May, also up 20% year over year. However, China is the main force behind this growth, with a 31% increase year over year in the January-May period and 36% in May alone.
The situation is getting interesting this year, as Europe applies new, higher tariffs on Chinese all-electric cars , following the U.S., which quadrupled the tariffs from 25% to 100% and made imported EVs not qualified for the $7,500 federal tax credit when purchasing. Rho Motion noted that the increase in tariffs will make EVs imported from China more expensive. If vehicle prices go up, this will not help adoption, and the ambitious climate goals might be missed.
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