EV sales are booming in Europe with fuel at record highs
More than one in three vehicles sold had a plug, up from just over one in four.
BERLIN – After years of unsuccessful efforts to phase out combustion engine vehicles, electric car sales in Europe are rapidly increasing due to rising fuel prices caused by geopolitical tensions. In August, registrations of fully-electric cars surged by 52% compared to the previous year, according to data from the European Automobile Manufacturers’ Association.
Germany, the largest market, saw a 75% jump in EV sales, while France saw a more than doubling of sales. A significant factor in the surge of EV demand is the skyrocketing cost of running traditional engines fueled by fossil fuels, which has been exacerbated by the disruption of tanker traffic in the Strait of Hormuz, raising the average price of a liter of petrol in Germany to a record €2.31.
Diesel prices have also escalated, hurting transport-dependent businesses and households. The shift towards EVs means over a third of vehicles sold in Europe have a plug, up from just over a quarter. The surge in fuel prices is affecting cash-strapped households and transport-dependent firms. For fishermen like Charles Rivière, the rising cost of fueling his van and boat means he needs at least 20 Parisian clients to make his roundtrip worthwhile.
In Germany, charging a mid-range or luxury EV at home is about 70% cheaper than fueling a petrol-powered car. The surge in demand for EVs helped offset deep declines in fuel-powered vehicle deliveries in August, with overall deliveries rising by 5.3%. Governments are providing financial support, especially for less affluent households, with German drivers below a certain income threshold receiving up to €6,000 off the purchase price of an EV.
Concern about insufficient battery range is fading, with Ford's Capri long-range EV crossover able to travel over 600km on a single charge. However, for Europe's established manufacturers, the long-awaited EV boom comes with challenges. The industry has seen tens of billions evaporate due to demand hiccups and abrupt regulation changes in the US, leading to major writedowns.
Chinese manufacturers are capitalizing on Europe's struggles, with BYD's budget city EV Dolphin Surf starting at €22,990 and offering significant discounts.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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