EV sales spike nearly 50% in the EU in March amid Iran war energy fears
In a landmark month for the European automotive industry, new battery-electric vehicle (BEV) registrations across the EU rose 48.9% in March compared to the same period last year, according to the European...
In a landmark month for the European automotive industry, new battery-electric vehicle (BEV) registrations across the EU rose 48.9% in March compared to the same period last year, according to the European Automobile Manufacturers’ Association (ACEA).
The growth comes at a moment when Europe is facing an extended period of high petrol prices due to the Iran war and the disruption of global energy supplies.
Battery electric cars reached more than 20% share of the total EU market in March and a 19.4% share for the first quarter. This compares with 15.2% in the first quarter of 2025.
The ACEA's report explained that the shift was significantly bolstered by new and revised tax benefits and other incentive schemes introduced across major European countries.
While electric cars are gaining ground rapidly, hybrid-electric vehicles (HEVs) still hold the largest individual share of the market at 38.6%, and registrations surpassed 1 million units in the first quarter.
Plug-in hybrids (PHEVs) also grew, rising to a 9.5% share from 7.6% a year earlier.
In contrast to the EV figures, internal combustion engine vehicles (ICEVs) continue to lose ground.
Petrol car registrations decreased further across the EU in the first quarter, dropping significantly from last years' 28.7%, and diesel followed a similar path, with its share shrinking to just 7.7%.
ACEA said overall car sales grew by 4% in the first quarter compared with the same period in 2025, largely driven by new and revised tax incentives and support schemes introduced across major European countries.
ACEA also noted that, despite strong BEV growth, demand for hybrid vehicles remains robust.
This supports a “technology-neutral” approach to decarbonisation, allowing for a gradual transition that reflects differing consumer needs and uneven charging infrastructure across Europe.
Western Europe’s 'Big Four'
The performance of the continent's major economies, often referred to as the "Big Four," played a key role in these results. Italy, France, Germany, and the UK showed varied but broadly strong trends toward electrification.
In the EU, Italy recorded the fastest growth, with a 65.7% increase in BEV registrations during the first quarter.
France followed with a robust 50.4% increase, while Germany recorded a 41.3% rise in the same category.
The UK mirrored this trend with significant volumes, registering over 86,000 new BEVs in March alone, a 24.2% increase compared to the same month in 2025.
However, the transition is not without its casualties.
Petrol and diesel car sales plummeted across these key markets. France saw the most dramatic contraction, with registrations falling by 40.3%.
Italy, Germany and the UK also reported double-digit declines in this category, reflecting a broader shift in consumer sentiment and policy.
Geopolitical pressures accelerate the shift
The transition toward electrification is also unfolding against a volatile and costly geopolitical backdrop.
The Iran war and the consequent blockade of the Strait of Hormuz have created sustained pressure on global energy markets, leading to high and unpredictable prices for traditional fuels.
These external factors are effectively penalising owners of petrol and diesel cars, making the lower running costs of EVs increasingly attractive to European motorists.
If the conflict prolongs, it is expected that the trend of new buyers increasingly favouring EVs will continue, as it alienates consumers from the increased costs.
