EV sales spike nearly 50% in March amid Iran war energy shortage fears

New battery-electric vehicle registrations across the EU rose 48.9% in March compared to last year, driven by fuel price volatility linked to the Iran war and Strait of Hormuz disruption, according to the European Automobile Manufacturers’ Association (ACEA).

Electric vehicle market share rises amid high petrol prices

Battery electric vehicles (BEVs) reached more than 20% of the total EU market in March and a 19.4% share in the first quarter, compared with 15.2% in the first quarter of 2025. The ACEA attributed the growth largely to new and revised tax benefits and other incentive schemes introduced across major European countries.

Hybrid-electric vehicles (HEVs) remain the largest individual market segment at 38.6%, with registrations surpassing 1 million units in the first quarter. Plug-in hybrids (PHEVs) also increased their share to 9.5% from 7.6% a year earlier. Conversely, internal combustion engine vehicles (ICEVs) continue to lose market share, with petrol car registrations dropping from 28.7% last year and diesel falling to 7.7%.

Market trends in major EU economies

The “Big Four” European economies—Italy, France, Germany, and the UK—showed varied but broadly strong trends toward electrification. Italy recorded the fastest growth with a 65.7% increase in BEV registrations in the first quarter. France followed with a 50.4% rise, Germany with 41.3%, and the UK registered over 86,000 new BEVs in March alone, a 24.2% increase compared to the same month in 2025.

Meanwhile, petrol and diesel car sales declined sharply in these key markets. France saw registrations for these vehicles fall by 40.3%, while Italy, Germany, and the UK reported double-digit declines.

Geopolitical factors influence consumer behavior

The ongoing Iran war and blockade of the Strait of Hormuz have created sustained pressure on global energy markets, leading to high and volatile prices for traditional fuels. These external factors are effectively penalizing petrol and diesel vehicle owners and making the lower running costs of EVs more attractive to European consumers.

ACEA noted that despite strong BEV growth, demand for hybrids remains robust, supporting a “technology-neutral” approach to decarbonisation that allows for a gradual transition reflecting differing consumer needs and uneven charging infrastructure across Europe.

If the conflict continues, the trend of new buyers increasingly favoring EVs is expected to persist as consumers respond to rising fuel costs.