Electric vehicle sales are surging in Europe, the world's second-largest EV market, amid the energy crisis triggered by Middle East tensions, working in favor of Chinese EVs expanding their "invasion" of the region.
According to European EV association E-Mobility Europe and market research firm New AutoMotive on Thursday (local time), a total of 560,000 new EVs were registered in 15 major European markets, including Germany, France, the UK, and Italy, in the first quarter of this year, up 29.4% from a year earlier. Nearly half of that figure, or 240,000 units, was concentrated in March alone, when the United States launched airstrikes against Iran. The surge is attributed to the war's impact, which drove gasoline prices up by an average of about 15% and diesel prices by about 30% in Europe.
In the European Union, the EV transition is progressing rapidly, with EV sales surpassing internal combustion engine vehicle sales for the first time in December last year. As of January this year, the EV share in the EU stood at 19.3%, a jump of more than 4 percentage points from 14.9% a year earlier. The U.S.-Iran war has stepped on the "accelerator pedal." Reuters noted that "drivers are turning away from combustion engine vehicles due to high gasoline prices."
A significant portion of the increased EV sales was taken up by Chinese models. According to the South China Morning Post (SCMP), Chinese car imports to the EU last year totaled 1.006 million units, up 30% from 2024 and surpassing 1 million for the first time. The European Alternative Fuels Observatory (EAFO) said that in January, BYD's SEAL U model sold 8,063 units in Europe, outpacing Tesla's Model Y, which ranked fourth with 6,941 units. Investment bank Bank of America (BofA) projected that China's EV exports will grow 40% this year from the previous year, with Europe serving as the key demand region.
