Electric Vehicle Numbers Up as Energy Crisis Hits

New registrations of electric vehicles (EVs) overtook gasoline vehicle numbers in March according to the German Association of the Automotive Industry. This follows the introduction of a new EV subsidy program and the sharp increase in oil prices caused by the closure of the Strait of Hormuz and the ongoing conflict in the region. 

Electric vehicle registration numbers were up 66 percent to 71,000 in March, with internal combustion engine vehicle numbers falling below 23 percent as registration levels declined five percent to 67,000 vehicles during the same period. The launch of a new subsidy program to support lower income households buy – with up to EUR 6,000 in financial aid – or lease EVs has helped make EV ownership more attractive. 

Anecdotal evidence from car dealerships and online portals suggests that the current oil price crisis caused by the ongoing Israel-US-Iran war has contributed to the upturn in electric vehicle sales. 

Hybrid vehicles equipped with an electric motor and a combustion engine dominated the domestic vehicle market in March with 40 percent (118,000 vehicles) of all new vehicles registered.