A surge in fuel prices is accelerating global electric vehicle (EV) sales and hastening the decline of diesel models in Europe, auto executives say. In August, EV sales in the EU jumped 63% to 196,486 units, capturing a 28% market share, while diesel car sales plunged by nearly a quarter to 45,403 vehicles, shrinking to 6% of the market. The demand shift extends beyond Europe, with rapid EV growth in southeast Asia and Latin America.
Volkswagen CEO Oliver Blume called the European market a breakthrough, noting that electric cars represent “fuel-pump independence” for many consumers. Diesel prices reached $220 a barrel in wholesale markets last month—more than double pre-war levels—driving further declines in diesel vehicle sales. The International Energy Agency warned of a global diesel shortage until mid-next year.
Volvo Cars’ chief commercial officer Erik Severinson declared, “I think this is the end of diesel,” citing higher prices and uncertainty around resale values. Stellantis CEO Antonio Filosa acknowledged limited remaining applications for diesel beyond trucks and commercial vehicles, while Renault is expanding EV offerings in small vans and commercial segments. Despite a temporary revival following eased EU emissions rules, diesel’s future appears increasingly uncertain as EV adoption accelerates.
Source: Financial Times Companies · Summarized by HeadlinesBriefing