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

High oil prices, government subsidies, and the emergence of more affordable electric vehicles (EVs) have led to a surge in EV sales across much of Europe in July, according to data provided to Reuters. The data shows that EV sales have increased by 40.5% in the EU's first half compared to the same period in 2025, representing 20.7% of all car sales.

EV registrations across 16 markets covering over 90% of EU car sales rose 13% year-on-year in July, accounting for 25.7% of all new car sales. Renault UK's managing director, Adam Wood, noted that EVs are now part of the mainstream, with Renault's UK sales being 50% electric in July, up from 10% two years ago. The Renault 5, a revamped version of the iconic 1972 model, became Britain's best-selling electric car in July, with a range of up to 250 miles.

Renault is set to launch the electric Twingo later this year, priced below £20,000 before potential UK government subsidies. Charlotte Merrell, a 32-year-old EV owner, emphasized that the cost savings from home charging make the switch to an electric vehicle worthwhile. Industry data reveals that EV sales in the EU jumped 40.5% in the first half of the year, with 1.2 million cars sold, accounting for 20.7% of all sales.

OLX, an online marketplace, reported a significant increase in EV inquiries since the Iran war began, with customer inquiries rising by 84% in France, 59% in Romania, 30% in Portugal, and 19% in Poland. Chinese brands, known for offering affordable models, are increasingly featured on EV listings. A recent poll by German online marketplace Carwow found that 62% of respondents believe switching to an EV is the best long-term solution to high fuel costs.

In France, EVs accounted for 29% of new car sales, and the country's social leasing EV subsidies program for lower-income buyers saw a 35% jump in registrations in July alone. However, Marie-Laure Nivot, head of automotive market analysis at AAA DATA, cautioned that the transition to EVs could reach a saturation point if public charging infrastructure is not adequately addressed, especially for those living in apartments.