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Iran War Sparks Electric Vehicle Boom Across Europe
18 Jun
Summary
- New EV registrations surged 34% year-on-year in May across Europe.
- Renault's EV orders climbed 50% since the Iran war began.
- Used EVs are now cheaper than comparable combustion-engine cars.
The demand for electric vehicles (EVs) in Europe is experiencing a significant upswing, primarily driven by elevated fuel prices stemming from the Iran war and subsequent shipping disruptions. In May, new EV registrations across 17 key European markets rose by 34% year-on-year, with fully electric models constituting nearly a quarter of all new registrations.
Automakers are noting this shift, with Renault reporting a 50% increase in EV orders in some countries since late February. However, executives express caution, suggesting that sustained demand may depend on fuel prices remaining high. The availability of more affordable EV models, including those from Chinese manufacturers like BYD, is also a crucial factor in this growing market.
The used EV market is also seeing increased activity, with strong demand and rising supply. Online marketplaces report substantial year-on-year jumps in sales leads for Chinese EV brands in France. Experts believe that the sustained availability of affordable new and used EVs will likely stabilize the market, even if fuel prices eventually decrease.
