China's EV sales hit record share as fuel prices rise amid Iran conflict
Electric vehicles and plug-in hybrids accounted for a record 65.2% of the 1.54 million cars sold in mainland China last month, up from the previous high of 65.1%. Petrol car sales plunged 40% year on year, while EV deliveries fell only 10.1%, reflecting a broader market slowdown. The Iran war is accelerating the shift as rising fuel costs push consumers toward electric models.
The latest 65.2% share of new car sales surpasses the 65.1% record set just one month prior. Amid a broader market downturn, petrol vehicle sales dropped 40% year-on-year, while electric deliveries experienced a comparatively mild 10.1% decline.
Dealers point to diminished range anxiety and a recent influx of models featuring sophisticated driver-assistance technologies as key motivators. Additionally, elevated fuel prices stemming from the Iran conflict are steering motorists toward electrified options.
The sustained rise in EV adoption could significantly impact fuel retailers and traditional automakers, who may face shrinking demand for combustion engines. Consumers could benefit from lower operating costs, though those lacking home charging access may encounter practical difficulties. This shift may also strain battery supply chains and influence global oil markets, while prompting infrastructure providers to accelerate charging network expansion.