Rising petrol prices push EV sales to record highs in Europe in March

Rising petrol prices in Europe drove car buyers towards electric vehicles (EVs), resulting in record sales in March and marking the first global increase in EV demand this year, according to data released by Benchmark Mineral Intelligence (BMI) on Tuesday. Governments have capped fuel prices to limit the impact of rising costs following the war in Iran, which began on Feb. 28 and disrupted a major shipping route responsible for about 20% of global oil supplies.

Global registrations of battery-electric and plug-in hybrid vehicles rose 3% year-on-year to over 1.7 million units. Europe recorded the strongest growth, with registrations increasing 37% to nearly 540,000 units, the highest monthly total on record. BMI said the rise in petrol prices contributed to this trend. Growth was also notable in markets such as Australia, New Zealand, Vietnam and Thailand, where higher energy prices supported a 79% increase in EV registrations outside China, Europe and North America.

In China, EV registrations declined 14% to over 850,000 units, extending a slowdown that began after the withdrawal of purchase incentives. Consumers in the country are increasingly shifting towards larger vehicles. North America recorded a 30% drop in EV registrations to 121,500 units, marking the sixth consecutive year-on-year decline following the end of a tax credit programme in the United States and proposed changes to emission standards.