Gasoline Car Share of Global Sales Falls Below Half for First Time

Nikkei attributes the decline in gasoline car sales to higher gasoline prices and supply concerns, which stemmed from tense international conditions driving up global crude oil prices. This economic pressure has drawn consumer attention to the comparatively lower running costs of electric vehicles. Global EV sales rose 12% from a year earlier to 6.87 million units, now accounting for 17% of total new vehicle sales.

The data reveals contrasting EV sales trends influenced by policy. European EV sales climbed 32%, with EVs outselling gasoline cars in 31 major European countries for the first time. Conversely, China's EV sales slipped 3% after tax breaks were scaled back, and North American EV sales fell 15% following the withdrawal of preferential measures. This suggests that while market forces like high fuel costs can stimulate demand, government incentives play a critical role in sustained EV adoption.

Despite a general slowdown in EV adoption around 2024 as subsidies ended, an analyst from Mobility Global noted that high oil prices are renewing interest in EVs. The analyst also stated that EV buyers rarely switch back to gasoline or hybrid cars, indicating a potential for organic EV demand to grow if prices continue to fall, independent of subsidies. Emerging markets in Southeast Asia and Oceania saw significant EV sales jumps of 81% and 2.2-fold, respectively.