Record-high gasoline and diesel prices in many European markets did what European policymakers couldn’t do in years – shift consumer choice to low-emission vehicles.
Battery electric vehicle sales in Europe, including the UK, Switzerland, and Norway, surged by 52.2% in August from a year earlier as record-high gasoline and diesel prices prompted drivers to flock to battery and hybrid vehicles, data by the European Automobile Manufacturers’ Association, ACEA, showed on Thursday.
BEV sales in Germany, the biggest car market in Europe, soared by 75% last month compared to August 2025, as gasoline prices in Germany hit an all-time high of 2.31 euros per liter, or the equivalent of about $10 per gallon.
EV sales in France, another major European market, more than doubled.
“New EU car registrations increased by 5.3% year-to-date, against a backdrop of rising energy prices and persistent geopolitical uncertainty,” ACEA said today.
“Demand for a range of electrified vehicles remained strong, driven by market support measures and a broader model offering.”
Year to date, battery-electric cars held a 21.7% share of the EU market, up from 15.8% a year earlier. Hybrid-electric car registrations captured 36.6% of the market, remaining the preferred choice among EU consumers. At the same time, the combined market share of gasoline and diesel cars slumped to 29%, compared with 37.5% a year earlier, according to ACEA’s data.
Globally, electric vehicle sales have also surged this year following the oil supply disruption in the Middle East and the second oil price shock in four years.
The accelerating EV adoption that began with the spike in oil and fuel prices earlier this year is set to remain a trend in the global markets and could push the share of EVs in the passenger fleet above earlier expectations, analysts at Wood Mackenzie say.
Challenges to accelerated adoption still remain, including the need for billions of U.S. dollars in investments in critical battery minerals supply and charging networks. Yet, the longer the Strait of Hormuz crisis roils global fuel markets, the stronger the case for EV adoption could become.
By Charles Kennedy for Oilprice.com
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