The growth of electric vehicle sales in the EU is accelerating as the war in Iran disrupts oil and gas supplies, causing fuel price volatility.
March became a significant month for the European automotive industry: the number of registrations of new battery electric vehicles (BEV) in the EU increased by 48.9% compared to the same period last year, according to data from the European Automobile Manufacturers Association (ACEA).
This growth occurs against the backdrop of a prolonged period of high gasoline prices in Europe due to the war with Iran and disruptions in global energy supply chains.
The share of battery electric vehicles in the total sales of new cars in the EU exceeded 20% in March, while for the first quarter it amounted to 19.4%. For comparison, in the first quarter of 2025, it was at 15.2%.
The ACEA report notes that this shift has been significantly aided by new and revised tax incentives, as well as other stimulus programs introduced in the largest European countries.
Although electric vehicles are rapidly gaining market share, hybrid electric vehicles (HEV) still occupy the largest segment at 38.6%, with their registrations exceeding 1 million units in the first quarter.
The share of plug-in hybrids (PHEV) has also increased to 9.5% from 7.6% a year earlier.
Against this backdrop, internal combustion engine (ICE) vehicles continue to lose ground.
Registrations of gasoline cars in the EU in the first quarter continued to decline, dropping significantly below 28.7% from a year earlier; a similar trend is observed for diesel vehicles, whose share has reduced to just 7.7%.
According to ACEA, overall car sales in the first quarter grew by 4% compared to the same period in 2025, mainly due to new and updated tax incentives and support programs introduced in key European countries.
ACEA also notes that despite the rapid growth of the BEV market, demand for hybrids remains high.
This confirms the effectiveness of a "technologically neutral" approach to decarbonization, which provides for a phased transition considering differences in consumer preferences and the uneven development of charging infrastructure across Europe.
The results of the continent's largest economies, often referred to as the "big four," played a key role in the overall picture. Italy, France, Germany, and the United Kingdom show different but generally stable trends towards electrification.
Among EU countries, Italy led in growth rates, where the number of BEV registrations increased by 65.7% in the first quarter.
France follows with a solid growth of 50.4%, while Germany added 41.3% in this category during the same period.
The United Kingdom mirrors this trend in high absolute volumes: in March alone, over 86,000 new BEVs were registered, which is 24.2% more than in the same month of 2025.
However, the transition does not come without its casualties.
Sales of gasoline and diesel vehicles in these key countries have sharply declined. The most significant drop was recorded in France, where the number of registrations decreased by 40.3%.
Italy, Germany, and the United Kingdom also reported double-digit declines in this segment, reflecting a broader shift towards new consumer preferences and government policies.
Geopolitical Pressure Accelerates the Transition
The transition to electrification is also occurring against the backdrop of an unstable geopolitical situation related to rising costs.
The war with Iran and the subsequent blockade of the Strait of Hormuz exert constant pressure on global energy markets, maintaining high and unpredictable prices for traditional fuels.
These external factors hit the wallets of gasoline and diesel vehicle owners, making the lower operating costs of electric vehicles increasingly attractive to European drivers.
If the conflict drags on, it is expected that more new buyers will choose electric vehicles as rising expenses push consumers away from traditional modes of transport.
