Europe’s EV sales jump 34% as Iran war fuels shift from petrol

Iran War Fuel Shock Drives Surge in European EV Sales

Rising fuel prices triggered by the war in Iran and disruption to oil flows through the Strait of Hormuz continue to push European consumers toward electric vehicles, with new data showing fully electric car registrations climbed 34% year-on-year in May across 17 European markets, according to Reuters.reuters

Fully electric models now account for nearly one in four new car registrations in those markets, which cover more than 90% of European Union and European Free Trade Association car sales. The figures, compiled by research group New Automotive and industry body E-Mobility Europe, mark a sustained acceleration that began when the conflict erupted in late February and sent petrol prices to their highest levels in years.investing

Automakers Report Stronger Order Books

Renault has seen its EV order book rise by 50% in some countries since the war began, CEO Francois Provost told Reuters, though he predicted growth “will decrease” if fuel prices fall. BYD and Ford have also reported stronger demand across European markets.thenextweb

German online marketplace Carwow said EV interest — measured by configurations and purchase enquiries — has stabilized between 70% and 75%, up from around 40% earlier this year. The used EV market has also tightened, with Reuters reporting as early as March that petrol price spikes were boosting pre-owned electric vehicle sales across the continent.investing

Analysts Warn Growth May Not Last

Despite the headline numbers, industry executives and analysts caution that the fuel-price-driven surge could prove temporary. BloombergNEF noted in its annual Electric Vehicle Outlook, published this week, that while the Iran war has “boosted consumer interest in buying an EV,” it is “still too early to draw a clear connection with higher EV sales over the near-term”.bnef

Forbes reported that only about 10% of non-EV buyers surveyed considered switching to electric, suggesting the fuel shock has accelerated purchases among those already contemplating the move rather than converting skeptics. Renault’s Provost echoed this view, warning that demand could normalize if shipping routes stabilize and oil prices retreat.forbes

Still, structural factors are reinforcing the trend. Charging infrastructure improvements, a wave of more affordable models — including from Chinese automakers — and tightening EU emissions regulations are making EVs more accessible to mainstream buyers. In May, France recorded a 29% BEV market share with 93% year-on-year growth, while Germany reached 25% share with 39% growth.investing