Electric car sales surge as high oil prices drive shift away from fossil fuels

More and more European drivers are buying fully electric cars (also called battery-electric vehicles - BEVs) and benefitting from growing cost savings. This is a welcome change as the road transport sector has been one of the most difficult sectors of our economy to decarbonise.

Soaring oil prices, fuelled by the instability in the Middle East, are one part of the story, but this surge is no flash in the pan - it's the latest chapter in the ongoing transformation of Europe's car market, driven by EU climate policies and the global momentum towards cleaner transport.

Electric cars hit new highs amid oil price surge

According to the European Automobile Manufacturers' Association (ACEA), more than one in five (20.6%) new cars registered in the EU in April 2026 were fully electric, up from 15.7% in April 2025 and on average 17.4% over 2025. The trend is even more striking over the long term: since 2019, the share of electric cars in EU sales has grown tenfold.

Overall, between January and April 2026, around 750,000 new fully electric cars were sold in the EU, thanks in part to the wider variety and improving affordability of the models available - there is now a much wider range of vehicles priced around EUR 25,000 compared to a few years ago.

The benefits are already clear. Drivers switching to electric vehicles are saving more on fuel, while the EU is reducing its dependence on imported oil and cutting its fossil fuel import bill. The International Energy Agency (IEA) reports that, with oil prices at $100 per barrel, electric vehicle drivers enjoy fuel cost savings that are 35% higher compared to just a year ago. For the EU, the uptake of fully electric cars has already cut oil demand by an estimated 140,000 barrels per day - a 4.5% reduction in car-related oil use - saving in the order of €4.5 billion per year in fossil fuel imports.

"The current high oil price environment is drawing consumer attention to the economic benefits of driving electric," the IEA noted in its Global EV Outlook 2026. "Electric cars generally have lower running costs than petrol or diesel vehicles, mainly due to their higher efficiency" - something that becomes even more valuable when fuel prices spike.

Don't all the electric cars come from China?

In 2025, only 20% of fully electric cars sold in the EU were imported from China (both by Chinese and non-Chinese brands).

In the same year, a strong majority of the fully electric cars sold in the EU were produced in the EU, while EU exports of fully electric cars were worth twice as much as imports.

A global shift - not just a European story

Europe is not alone in this transition. Globally, BEV car sales surged by 26% in 2025, exceeding 13 million units - meaning 16% of all new cars sold worldwide were fully electric.

The growth is happening across the world:

• Norway: The undisputed leader, with 95% of new cars fully electric.
• UK: 23% of new cars sold in 2025 were BEVs.
• China: BEV car sales jumped from 27% to 33% of the market in just one year.
• Vietnam: Nearly two in five new cars (37%) are now fully electric, up from 24% in 2024.
• Türkiye: BEV car sales jumped from 10% to 14%.
• Indonesia: BEV car sales doubled from 7 to 15%.

The future is electric: this trend won't reverse

This rapid growth didn't happen by accident. It is a product of market design, regulatory and other incentives, and a strong economic case. The EU's CO₂ emission standards for cars have been a major driver, pushing carmakers to clean up their fleets over many years. The results speak for themselves: between 2019 and 2024, the average emissions of new cars fell by 28%, dropping from 147.3g to 106.7g CO₂/km.

With oil prices remaining high and volatile, and global markets quickly transitioning, the shift to electric transport is only set to accelerate. The message to drivers is clear: the future of motoring is looking increasingly electric, and that's good news for the money in your pocket as much as for the planet.