Surge in demand for electric vehicles in Europe amid high fuel prices due to conflict in the Middle East has boosted sales of new and used cars and given the auto industry a much-needed boost. Data shared by research firm New Automotive and industry organization E-Mobility Europe show that registrations of new electric vehicles in Europe increased by 34% year-on-year in April.
The data covers 16 markets that account for more than 80% of EU and EFTA car sales.
Data show that electric vehicles have achieved strong growth in countries with high penetration rates of electric vehicles, such as Denmark and the Netherlands, as well as in markets such as Italy, where electric vehicle development is slower.
Eric Severinson, chief commercial officer of Volvo Cars, said the company's order volume has increased, especially for the entry-level small electric SUV EX30, "because consumers are most sensitive to rising oil prices."
France's Renault SA said 50% of its registered vehicles in the UK were electric vehicles in April and that inquiries related to electric vehicles on its UK website had increased by 48% since the outbreak of the conflict in Iran. April’s registrations, which typically lag orders, are the first to fully capture the impact of the conflict in Iran.
Adam Wood, managing director of Renault UK, said: “There has been a sea change in interest in the Renault electric vehicle range.”
Searches for new and used electric vehicles have also grown significantly in online markets, with Chinese brands seeing particularly significant increases thanks to their more affordable models.
Carwow, a German car trading platform, said that since the outbreak of the Iran conflict, its proportion of inquiries about electric vehicles has increased from about 40% to 75%, while the proportion of inquiries about traditional gasoline vehicles has dropped from 33% to 16%.
“The strong development momentum of Chinese manufacturers is remarkable,” said Philipp Sayler von Amende, General Manager of Carwow Germany. Well-known brands such as BYD have risen from "niche brands" to hot brands.
Carwow said BYD's car purchase inquiries on its website surged 25,000% in the first quarter, while inquiries from Leapmotor increased by 436% and Xpeng Motors' inquiries increased by 153%.
Rival online trading platform OLX said customer inquiries for electric vehicles on its French website had increased by 80% since the conflict began.
During past periods of soaring gas prices, dating as far back as the 1970s, consumers have switched to more fuel-efficient cars, only to switch back to less-efficient vehicles when gas prices receded.
Industry insiders say things may be different this time.
Christian Gisi, CEO of OLX, said: "The Iran conflict has fundamentally changed the way people think about energy security in their daily lives. European attitudes towards electric cars have shifted from 'maybe later' to 'buy now'."