EVs outsell gas and diesel cars in Europe for the first time

August 2026 marks the first month in which EVs outsell gas and diesel cars in Europe for the first time ever amid high oil prices and government incentives.

The surge is attributed to ongoing causes such as rising fuel and energy costs due to the Iran war choking supplies through the Strait of Hormuz;

But it is also attributed to a more aggressive pricing strategy pursued by Chinese EV manufacturers, along with government subsidies supporting EVs across Europe.

In August, 243,207 EVs were newly registered across 31 European countries, including the EU, the UK, Norway, Switzerland, and Iceland, recording a 52.2 percent year-on-year increase, according to the The European Automobile Manufacturers’ Association (ACEA).

The ACEA further reported that the sale of gas and diesel cars fell by 23.4 percent to 202,931 units; close to a 50,000 unit difference compared to EVs. They said:

“Despite rising energy costs and geopolitical uncertainties, demand for electrified vehicles has remained strong, supported by government purchase incentives and an expanding range of available models.”

Among the subsidies was a German retroactive subsidy of up to $6,750 for EV purchases starting this year, alongside a purchase and lease support system; while the UK offered subsidies covering up to 10% for customers buying EVs priced under $48,880 since July last year.

However, EVs still lag behind gas and diesel engines in cumulative sales from January to August 2026, with EVs accounting for 2,133,364 units while gas and diesel engines reached 2,558,782 units, marking a difference of 420,000 units since the start of the year.