Record-high fuel prices drive demand, European EV sales surge 52% in August, Chinese brands' share hits new high.

After years of struggling to get drivers out of internal combustion engines with little success, European electric vehicle sales are surging, driven by geopolitical turmoil at GEO Group Inc pushing up fuel prices. According to data released Thursday by the European Automobile Manufacturers' Association (ACEA), all-electric vehicle registrations in Europe soared 52% year-over-year in August. Germany, the largest market, led the way with registrations up three-quarters; France's sales more than doubled. A major reason for the surge in EV demand is the rising cost of operating traditional fossil-fuel-powered enginesa cost that has been significantly inflated by rising oil prices. Strait of Hormuz and Russian Refineries: German Gasoline Hits Record 2.31 per Liter The war between the US and Israel against Iran is disrupting tanker traffic through the Strait of Hormuz, pushing Germany's average gasoline price to a record 2.31 per liter (equivalent to $10 per gallon). In Germany, the birthplace of the modern automobile, diesel is even more expensive, as Ukrainian attacks on Russian refineries have curbed global supply. The result of European car buyers switching to EVs: as of August, more than one-third of vehicles sold came with a plug, up from just over a quarter previously. Across the region, spiking fuel prices are hitting households that were already stretched thin. In major markets, fuel prices have risen by more than a quarter. This is also hurting businesses that depend on transportation. For 54-year-old Charles Rivirea fisherman from Luc-sur-Mer on France's northern coastthe rising cost of fueling his van and fishing boat means he needs more Parisians to buy his seafood to make a trip to the capital worthwhile. "I used to be able to make money with just 12 to 13 customers in Paris," Rivire said while preparing oysters at an outdoor community event in Paris's 14th arrondissement. "Now I won't come unless I have orders from at least 20 customers, and customers are becoming fewer and fewer," he added. "If I don't come, my income is zero." Home Charging 70% Cheaper Than Refueling: Affordable Models and Subsidies Join Forces For a growing number of drivers, switching to battery power is the answer. According to an analysis by price comparison website Verivox, in Germany, charging a mid-range or Deluxe Corporation EV at home currently costs about 70% less than fueling a gasoline car. Earlier this year, EV momentum in Europe had already picked up as automakers rolled out more affordable modelssuch as Renault SA's Twingo E-Tech city car starting at 19,490 ($22,353), and Volkswagen AG's Eastman Kodak Company Elroq compact SUV priced at 37,890. Since the start of the year, the sharp growth in EV demand has helped offset a deep decline in pure gasoline vehicles. The industry association said overall deliveries rose 5.3% in August. Governments are also providing financial support, especially for less affluent households. German drivers with incomes below a certain threshold can receive up to 6,000 in purchase rebates. In France, a program can bring monthly payments on some models below 100, such as the Citron -C3 city car. Concerns about insufficient range are also fading. Ford Motor Company's (F.US) Capri long-range electric crossover can travel over 600 kilometers on a single charge, comparable to Volvo Cars' mid-range EX60. The Other Side of the Boom: Massive Write-Downs and Layoffs for Automakers Yet for Europe's storied manufacturers, this long-awaited EV boom comes with a sting. Due to fluctuating demand and sudden changes in US regulation that forced them to readjust sales expectations, the industry has watched tens of billions of dollars evaporate. Opel parent company Stellantis (STLA.US) led the write-downs, recording an unprecedented charge of up to 25.4 billion last year. After the US EV policy shift under President Trump, the maker of Jeep and Ram absorbed even more pain. Manufacturers have responded by doubling down on already-initiated cost-cutting measures. The region's largest manufacturer, Volkswagen, is pushing ahead with plans to double global layoffs to 100,000. Last Friday, Volkswagen lowered its profit outlook for the year due to a sharp contraction in the Chinese market. Opportunity for Chinese Automakers: Market Share Hits Record Near 12% Europe's troubles are providing more opportunities for Chinese manufacturerswho offer solid technology at affordable prices. BYD Company Limited's budget city EV, the Dolphin Surf, starts at 22,990, and the company is offering discounts of up to 11,600 to Italian customers. According to data released Wednesday (September 23) by Dataforce, Chinese brands' share of total new car sales in Europe hit a record near 12% in August. From Oil Price Shock to Politics: Germany's 2.5 Billion Bailout, France Fears New Unrest The impact of record fuel prices on voters is also reshaping Europe's political agenda. With Chancellor Friedrich Merz's governing coalition losing votes heavily, Germany's federal and state governments agreed last week on a 2.5 billion relief package for drivers and businesses. In Italy, Prime Minister Giorgia Meloni's government introduced vehicle ownership tax breaks this month, with national elections due next year. In France, there is growing concern that the latest cost-of-living crisis could trigger a new wave of unrest similar to the 2018 "Yellow Vest" protests. Over the past week, fishermen blockaded several ports and a fuel depot along the Mediterranean coast, and some gas stations in the north were vandalized. "Drivers are no longer filling up their tanks," said Jacques Vaysse, who runs an independent gas station in the small village of Salles-Curan in the Aveyron region of southeastern France. "Unless the government lowers fuel taxes, there will be social consequences."