Electric Car Sales Surge 51% in Europe as Iran War Drives Petrol Prices Higher

Sales of electric cars soared 51% in continental Europe last month, amid a rise in petrol and diesel costs driven by the Iran war. Data shows that 224,000 new electric vehicles (EVs) were registered in March, and 500,000 across the first three months of the year – a 33.5% increase on a year earlier, according to analysis of national sales data in 15 countries by New AutoMotive and E-Mobility Europe, a trade body.

Buyers' interest in electric cars has risen across Europe since the start of the war in Iran in late February, as the rising cost of petrol highlights the cheaper power available from a plug. As Donald Trump has repeatedly criticised Europe's "windmills" and push towards greater use of renewable energy, the figures suggest the US-Israel war on Iran is accelerating the move away from combustion engines.

Norway has experienced the greatest number of drivers switching to electric, as 98% of all new cars sold in March were EVs, followed by Denmark at 76% and Finland at almost 50%. The figures covered 15 countries in the EU and Efta markets. The Nordic countries, led by Norway, have moved fastest on electrification, helped by higher wages, generous subsidies and extensive charging infrastructure installed by the government.

Last week Europe's only all-electric car manufacturer, Sweden's Polestar, reported record sales of 60,000 vehicles last year. Western carmakers have been retreating from EVs amid signs of waning demand and reduced tax credits. However, the Iran war and the sharp rise of petrol prices in the past seven weeks may have focused minds, and there have been significant increases in EV sales in central and southern Europe.

Germany, France, Spain, Italy and Poland recorded a 40% increase in EV uptake in the first quarter of the year. Italy, which has been one of the slowest in the EU to switch to EVs, posted a year-on-year increase of 65% in March, although overall market share is still low at just 8.6% of sales compared with 28% in France.

The uptake of EVs in France shot up 50% year on year thanks to a collection of generous government incentives. It is giving up to €5,700 (£4,963) to low-income households towards the price of an EV, with grants up of up to €4,700 for middle-income buyers and €3,500 for others. France has created a social leasing scheme for households with income of less than €16,300 a person who have to commute at least 15km (9.3 miles) to work, making the switch attractive in rural areas.

"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," said Chris Heron, the secretary general of E-Mobility Europe, which has calculated that the switch so far this year has reduced annual demand at the forecourt by the equivalent of 2m barrels of oil a year.

Germany, where the car industry has been dogged by an influx of Chinese EVs, recorded a 42% increase in EV sales in March. Last week the German automotive trade body said restructuring in the industry and new investment was paying off, as every second electric car sold in Europe was now made in Germany.