Electric vehicles supercharge EU car sales

According to figures released on Thursday, sales of new cars in the European Union increased last month as buyers switched to electric vehicles as gas costs skyrocketed owing to the Middle East conflict.

According to registration data from the European Automobile Manufacturers’ Association (ACEA), overall sales increased by 12.5 percent in March compared to the same month last year to 1.16 million vehicles.

After drops in January and February, that increase enabled the market achieve a four percent increase for the first quarter as a whole.

Sales of fully electric vehicles soared by 49 percent, with plug-in hybrids also jumping 20 percent.

Over the first quarter hybrids were the top choice of European consumers, accounting for 37 percent of overall sales.

Plug-in hybrids accounted for another 10 percent of market share.

The market share of simple petrol motor vehicles slumped to 23 percent in the quarter, down from 28 percent a year earlier.

Fully electric vehicles accounted for just over 19 percent of overall sales.

The ACEA noted the sales performance of electric vehicles varied strongly by country, with Italy, France and Germany posting strong gains.

Petrol prices spiked throughout Europe after the United States and Israel attacked Iran on February 28, resulting in a near block on oil exports from the Gulf and leading Iran to retaliate by attacking energy facilities throughout the region.

Meanwhile, sales in Belgium and the Netherlands fell.

The Volkswagen group kept its top spot in the EU market in the first quarter, with its market share dipping to 26.4 percent despite its sales edging higher.

That was primarily due to Stellantis, whose Fiat, Citroen and Opel brands saw sales surge and boost the group’s market share.

Another major European car manufacturer, Renault, saw sales slide in the first due to transportation problems affecting its low-cost Dacia brand.

Sales of Teslas jumped nearly 60 percent from the first quarter of last year when Elon Musk’s involvement in the Trump administration turned off European consumers.