Sales of electric cars in Europe: the war in Iran causes a historic increase, Chinese brands benefit from it

The war in Iran has done what subsidies and regulations have failed to achieve in the long term: switching European motorists en masse to electric vehicles. Since the American-Israeli strikes on Iran at the end of February 2026, the price of a barrel of oil has crossed the $100 mark for the first time since the Russian invasion of Ukraine in 2022. At the pump, the pain was immediate. In the concessions, the response was just as strong.

Historic figures in March and April

Registrations of 100% electric vehicles jumped 51% in March 2026 in 14 key EU and EFTA markets, with more than 224,000 new electric cars registered in a single month, representing 22% of all electric vehicle sales. new cars. Over the first quarter as a whole, Europe recorded more than 500,000 new electric vehicles, up 33.5% compared to the same period last year. In April, the trend was confirmed with an increase of 34% over one year, according to exclusive data transmitted to Reuters by the New Automotive and E-Mobility Europe research groups, covering 16 markets representing more than 80% of EU and EFTA automobile sales.

The effective closure of the Strait of Hormuz by the Iranian conflict, which threatens around a fifth of the world’s oil supply, played the role of trigger. The International Energy Agency has called the situation the greatest global energy security challenge in history. For European drivers, the financial equation has become difficult to ignore: according to a study by the Transport & Environment organization, the monthly cost of using a gasoline car now reaches 142 euros compared to 65 euros for an electric vehicle, a difference of 77 euros per month directly linked to the crisis.

Chinese brands, big winners from the oil shock

The disruption primarily benefits Chinese manufacturers, whose more accessible models meet a demand for a quick and economical alternative. On the Carwow platform, purchase requests for BYD increased by 25,000% in the first quarter. Leapmotor shows an increase of 436% and Xpeng 153%. BYD’s registrations in Germany jumped 327% in March, taking its market share to 1.2% in Europe’s largest auto market. The brand is going even further with a Dolphin G at 20,000 euros designed exclusively for Europe and expected in June, directly positioned against the Renault Clio and Toyota Yaris.

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This breakthrough is accelerating in a particularly favorable context: Tesla’s European registrations have collapsed, partly linked to the political activities of Elon Musk which caused boycotts in several countries. The space thus freed up is largely occupied by Chinese manufacturers. The new MG4, equipped with a semi-solid battery and expected under 20,000 euros in Europe, illustrates this strategy of price disruption.

European manufacturers caught up with momentum

European brands are also benefiting from the wave, but to a lesser extent. Renault says 50% of its UK registrations in April were electric vehicles, with online inquiries up 48% since the start of the war. The Renault 5 became the best-selling electric car in Britain that month, says The Next Web.

Volvo is seeing an increase in orders, particularly for its EX30, where sales director Erik Severinson notes that customers are particularly sensitive to oil prices. At Seat/Cupra, Managing Director Markus Haupt revealed to Reuters that German sales teams are now recording nearly 60% of orders for electric vehicles, well above the planned production quota of 25%. Skoda, for its part, is trying to capture this demand with its Epiq, an electric SUV priced at the price of a thermal equivalent, around 23,000 euros, bonus deducted.

Will the shock be lasting?

The question that haunts the sector is that of the sustainability of the movement. The previous oil shock of 2022, caused by the Russian invasion of Ukraine, generated temporary interest in electric vehicles before dissipating with falling fuel prices. Several factors argue this time for a more sustainable transformation: the charging infrastructure is significantly more mature, Chinese models have made electric cars significantly less expensive, and European regulations on emissions will tighten further in 2027. For European manufacturers, the moment is paradoxical: the demand they have spent billions to build is finally here, but it’s BYD, Leapmotor and Xpeng who are reaping the most spectacular rewards.

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