Interest in EVs surges in Europe as fuel prices jump after Iran war

Car buyers’ interest in electric cars has surged across Europe since the start of the war in Iran, as the rising cost of petrol highlights the cheaper power available from a plug.

Online marketplaces in the UK, Germany, France and Spain reported huge increases in inquiries about electric vehicles since the start of the conflict in February.

The war caused rapid increases in petrol prices and protests around the world, while electricity prices have not been as badly affected.

The first strikes were launched on 28 February, causing turmoil on global commodities markets as Iran effectively shut down the strait of Hormuz, a key route for oil and gas exports.

Mobile.de, Germany’s biggest online car marketplace, said high fuel prices had been a “catalyst” for an “E-Auto-Boom”.

Ajay Bhatia, chief executive of Mobile.de, said the new and used car marketplace had seen a greater than 50% increase in electric car inquiries in March compared with February. Petrol and diesel inquiries dipped during the same period, while inquiries for hybrids combining an engine with a smaller battery edged up by 4%.

Volkswagen’s ID.3 was the most popular battery car. Overall, electric demand has risen compared with last year as well thanks to Berlin’s more generous €6,000 (£5,200) purchase subsidies.

Bhatia said diesel prices of €2.50 a litre in Germany provided powerful motivation for a push to zero-emissions vehicles that has previously struggled in Europe’s internal combustion engine powerhouse. “What the German energy transition couldn’t do, almost the economic reality has done,” he added.

Carwow, which links buyers with dealers in the UK, Spain and Germany, reported 20% to 30% increases in inquiries about electric cars in all three markets between February and March. In the UK, electric demand was up 23% over the month, while hybrid interest was up 19%.

“We’ve seen a shift away from internal combustion engines for quite a while now,” said Iain Read, Carwow’s content director. “But what we’ve seen with the war is it’s accelerating. Consumers are worrying about cost of living and wanting to keep their regular bills down.”

Figures last week from the Society of Motor Manufacturers and Traders (SMMT) showed that in March battery electric car registrations, based on sales several months before the break out of hostilities, totalled 86,120. This was a jump of 24.2% compared with the same month last year and a record high.** **

La Centrale, one of France’s largest car marketplaces, said that its searches for electric vehicles had increased by 160% between the start of March and the start of April.

“Drivers are very sensitive to energy prices and they are seeking alternatives,” said Guillaume-Henri Blanchet, La Centrale’s deputy chief executive. “Immediately we saw a reaction from drivers” in looking at battery cars, as well as increased interest in used vehicles.

AutoScout24, another marketplace, said demand for electric cars was up by about 40% in Germany, Austria and Italy, while demand for petrol and diesel was flat or falling.

For the car industry, and particularly for manufacturers who have lobbied strenuously for lower electric vehicle targets, the question will be whether the increased interest will be permanent.

“In my view this is a spike that will go down, but it will not go down completely,” said Mobile.de’s Bhatia. Electric car demand will settle at “a new, higher normal than we had before” – helped by improvements in charging infrastructure and lower BEV prices.

Ian Plummer, chief customer officer at Autotrader in the UK, said that the previous spikes in petrol prices did not lead to sustained increases in electric purchases. He said: “There is still work to do to ensure consumers are confident that electric cars can fit their lifestyles.”

La Centrale’s Blanchet said: “This crisis will leave some scars on consumers.” The Iran petrol price increases have caused “one of the first times that consumers really have an awareness of total cost of ownership”, he added, meaning they are willing to consider a higher upfront cost if prices to power the car will be lower in the long term.