Escalating fuel costs across Europe prompted car buyers to turn to electric vehicles in unprecedented numbers last month, marking the first time global EV sales increased this year, according to research released Tuesday by consulting firm Benchmark Mineral Intelligence.
Nations around the world have implemented fuel price caps to protect drivers from rising costs following the conflict in Iran that began February 28, which has disrupted a crucial shipping corridor responsible for approximately 20% of worldwide oil transport.
According to BMI, new registrations for battery-electric and plug-in hybrid vehicles climbed 3% compared to last year, reaching more than 1.7 million cars globally. Europe experienced a dramatic 37% increase, hitting a record monthly peak of nearly 540,000 electric vehicles sold.
Though vehicle registrations typically follow behind actual sales, BMI data manager Charles Lester explained that “there is a good portion of this that you can put down to the rise in petrol prices.”
The most significant growth occurred in nations experiencing the steepest energy price increases, including Australia, New Zealand, Vietnam and Thailand. These countries collectively generated a 79% spike in EV registrations outside the primary markets of China, Europe and North America, Lester noted.
In China, the world’s largest automotive market, EV registrations dropped 14% to more than 850,000 vehicles sold, continuing a downward trend that began in January after the government ended funding for vehicle trade-ins and eliminated tax exemptions for EV purchases.
Lester observed that Chinese buyers, who previously utilized these incentives to purchase compact EVs, are now gravitating toward larger vehicles.
North American EV registrations declined 30% to 121,500 vehicles sold during March, representing the sixth straight year-over-year decrease following the termination of an EV tax credit program in the United States and President Donald Trump’s administration’s proposals to reduce CO2 emission requirements.
“It has been its highest monthly figure since the tax credit ended, but the reality is the pullbacks have happened,” Lester stated.
