European sales of electric vehicles are once again being boosted by rising fuel prices brought on by the conflict in Iran
According to industry data provided to Reuters, rising fuel prices brought on by the conflict with Iran are increasing demand for new and used electric vehicles around Europe. But several executives caution that enthusiasm may decline if gas prices drop.
According to industry experts, a rise in more reasonably priced models, notably those made by Chinese manufacturers, and advancements in charging infrastructure are contributing to the mainstreaming of electric vehicles and boosting demand.
The United States and Iran have agreed to an extended ceasefire. But disruptions to maritime transport mean that oil flows through the Strait of Hormuz could take weeks to normalize. Fuel prices are likely to remain high for months.
Data provided to Reuters by the research group New Automotive and the industry group E-Mobility Europe. Show that new electric vehicle registrations rose 34% year-over-year in May. Across 17 markets that account for more than 90% of car sales in the European Union and the European Free Trade Association.
The conflict has arisen as automakers launch cheaper electric vehicles in Europe. Addressing one of the main barriers to adoption: higher upfront costs compared to combustion-engine cars.
Chinese manufacturers are expanding beyond larger models to smaller hatchbacks for the European market, with BYD launching its Dolphin G in Berlin last week.
