Gasoline Car Sales Drop Below 50% as Fuel Prices Surge
The global automotive market has reached a turning point, as gasoline-powered car sales dropped below 50% for the first time ever. This shift was driven by record-high fuel prices triggered by the Hormuz crisis, which accelerated the adoption of electric vehicles (EVs) outside China. While China has already surpassed the 50% threshold for EV and hybrid sales, reaching about 55%, other regions are now catching up due to the recent disruptions in fuel markets.
Data from Mobility Global, cited by Nikkei Asia, revealed that between January and June, sales of gas-powered vehicles (excluding hybrids) fell by 10% year-over-year to 20.25 million cars, reducing their share of total global automotive sales to 49%. The surge in gasoline prices this year, particularly in Europe, has significantly boosted EV sales. In Europe, including the UK, Switzerland, and Norway, battery electric vehicle (BEV) sales surged by 52.2% in August compared to the previous year.
Germany, Europe's largest car market, saw BEV sales soar by 75% in August year-over-year, as gasoline prices hit an all-time high of 2.31 euros per liter, equivalent to about $10 per gallon. In France, EV sales more than doubled. The German government's introduction of a purchase premium for EVs from January 2026 has further accelerated sales, with one in every four passenger cars sold in Germany between January and August being a pure BEV. This share increased to one in every three in August alone, compared to an average of 19% in 2023.
Globally, EV sales have surged this year following the oil supply disruption in the Middle East. The International Energy Agency (IEA) noted that EV sales rebounded sharply in the second quarter, rising by 35% compared to the first quarter. This growth was driven by the energy crisis sparked by the war in the Middle East, which brought fuel price volatility back into sharp focus. In sizable car markets like Brazil, India, Australia, and Vietnam, electric car sales roughly doubled between March and June compared to the same period in 2023.