High oil prices, subsidies and affordable models rev up European EV sales

European electric vehicle (EV) sales have surged in July, propelled by high oil prices, government subsidies and the availability of more affordable models, according to data from Reuters. The Renault 5, a revived version of the classic Renault model from 1972, emerged as Britain's top-selling electric car last month. Renault UK's managing director, Adam Wood, noted that consumers are increasingly seeking ways to protect themselves from fuel price volatility, with EVs proving to be an excellent choice.

The company expects its electric Twingo model to launch later in the year, priced under £20,000, potentially eligible for a UK government subsidy. Renault's EV sales in the UK reached over 50% of orders in July, up from just 10% two years ago. EV registrations in the European Union (EU) surged 40.5% in the first half of 2025 compared to the same period in 2025, amounting to more than 1.2 million cars, constituting 20.7% of all sales.

The trend extended to 16 markets, covering over 90% of car sales in the EU and European Free Trade Association, with EV registrations jumping 13% year-on-year in July. Online searches for EVs have also spiked, with Amsterdam-based marketplace OLX reporting a surge in inquiries from France (84%), Romania (59%), Portugal (30%) and Poland (19%).

In Germany, a recent poll of 1,000 users showed that 62% of respondents believe switching to an EV is the best long-term response to persistently high fuel costs. European automakers and Chinese rivals have launched more affordable EV models, supported by subsidies, contributing to the trend. In France, 29% of new cars in the year to July were EVs, and EVs accounted for a record 35% of new car registrations in July alone, following the launch of a social leasing EV subsidy program for lower-income buyers.

However, challenges remain, such as a lack of public charging infrastructure, particularly for Europeans living in apartments.