European EV Market Surges On Energy Crisis

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

The ongoing global oil and gas crisis caused by U.S. and Israeli attacks on Iran over recent months has led to a notable spike in electric vehicle (EV) sales in Europe.

EV Demand Up 34%

Demand for electric vehicles (EVs) in Europe jumped 34% in April due to the negative impact the Middle East conflict is having on fuel prices. 

The data covered 16 European markets that account for 80% of sales from research group New Automotive and industry group E-Mobility Europe, and compiled by Reuters. Combined with additional information gathered by Industrial Info Resources from the European Automobile Manufacturers' Association (ACEA), online car sales platform Carwow and the U.K.'s Society of Motor Manufacturers and Traders (SMMT), sales of new EVs and increasingly, second-hand EVs, are changing the landscape of European motoring. According to Industrial Info Resources data there are 64 EV-related projects in Europe worth more than US$27 billion in investment. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports.

Recent Surge

Europe has been the leading global market for the growth of EVs in recent years but sales have increased notably in the last couple of months, driven in large part by the ongoing oil and gas crisis, which has driven up the cost of transport fuels. The arrival of cheaper Chinese brands has also spurred sales. E-Mobility Europe said April's growth came on the back of a massive 51% increase in March, which saw more than 242,000 new battery EVs (BEVs) registered, accounting for 22% of all new car sales. It stated that the ongoing Middle East conflict "sharpened the focus on the continent's oil dependence".

In the first quarter of 2026, EU member states registered more than 500,000 new EVs, a 33.5% increase on the same period last year. Chris Heron, secretary general of E-Mobility Europe, said: "March's surge in electric car sales is one of Europe's biggest recent gains in energy security, in a month when oil dependence has become a real vulnerability. Across the EU's major markets, EV sales are growing at rates above 40%, marking a clear step change, not statistical noise."

Data from the European Automobile Manufacturers' Association (ACEA) showed that BEVs accounted for 19.4% of the EU market share in first-quarter 2026, an increase from 15.2% one year earlier. Hybrid-EVs captured the largest share at 38.6% of the market while the combined market share of new petrol and diesel-fueled cars fell to just over 30%, down from 38.2% in first quarter 2025. BEV registrations have accelerated across every major EU market in the first quarter of 2026, E-Mobility found, with Europe's five largest countries--Germany, France, Spain, Italy and Poland--recording growth of above 40% year-to-date. 

Not a 'Blip'

"This isn't a blip, it's an inflection point," said Gurjeet Grewal, chief executive officer of U.K.-based Octopus Electric Vehicles, speaking to Reuters. Octopus registered a 95% year-on-year increase in demand for new EVs and a 160% rise for used EVs in April. France's Renault added that half of its U.K. registrations for April were EVs, with EV-related enquiries up 48% since the Iran war began. Volvo Cars' Chief Commercial Officer Erik Severinson said orders for its entry-level EX30 electric SUV are up especially "where customers are most sensitive to increase in oil prices". He added: "We are also seeing increased customer enquiries in our fully-electric cars even in southern European markets where EV penetration is comparatively lower." 

Germany's online marketplace Carwow noted that EV enquiries have risen to 75% from around 40% since the war began, while those for fossil-fueled cars have dropped from 33% to 16%. "What is striking is the strong momentum of Chinese manufacturers," said Carwow Germany Managing Director Philipp Sayler von Amende to RTE News. Purchase inquiries for BYD on its website rocketed by 25,000% in the first quarter, while those for Leapmotor were up 436%, and Xpeng rose by 153%.

Europe's Rising Fuel Prices

European fuel prices are continuing to rise. According to European Commission (EC) data, April saw the price of fuels and lubricants for personal transport in the EU jump by 20.8% compared with April 2025. This followed a rise of 12.9% in March 2026 compared with the same month in 2025. Before the Middle East conflict in February, the price of fuels and lubricants in the EU was generally decreasing for both the EU average and most EU countries. Looking at diesel and petrol prices in the EU in April 2026, they increased by 33.7% for diesel and 13.6% for petrol compared with April 2025. In March 2026, diesel prices rose by 19.8% and petrol by 9.4%. 

Key Takeaways

• There has been a notable spike in electric vehicle (EV) sales in Europe attributed to the ongoing global oil and gas crisis caused by U.S. and Israeli attacks on Iran. 
• Sales of EVs in Europe jumped 34% in April, on the back of a 51% jump in March.
• Industrial Info Resources data is tracking 64 EV-related projects in Europe worth more than US$27 billion in investment.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).