Gasoline prices surge, European electric vehicle sales soar, August growth rate exceeds 50%.

Title context: Gasoline prices surge, European electric vehicle sales soar, August growth rate exceeds 50%. Text: Surging oil prices are accomplishing what years of policy could not driving European consumers to electric vehicles on a massive scale. European battery electric vehicle registrations jumped 52% year-on-year in August, the strongest single-month growth rate in recent years. Behind this figure lies the real economic pressure brought by persistently rising gasoline prices. According to Bloomberg, data released Thursday by the European Automobile Manufacturers' Association (EACEA) showed that Germany's market grew by 75%, while France's sales more than doubled year-on-year. Overall, as of August, more than one in every three new cars in Europe had a charging plug, compared with just over one in four a year earlier. Xavier Chardon, head of Stellantis' Citron brand, said in an interview: "When oil prices rise, the issue of operating costs becomes very concrete for consumers. Buying an electric vehicle is no longer a technological choice, but an economic one." Record oil prices become the strongest "transition catalyst" The core factor driving this surge in demand is the sharp rise in fossil fuel costs. According to Bloomberg, U.S.-Israeli military operations against Iran are disrupting tanker traffic through the Strait of Hormuz, pushing Germany's average gasoline price to a record high of 2.31 euros per liter, equivalent to about $10 per gallon. Diesel is even more expensive Ukraine's sustained strikes on Russian refineries have squeezed global supply. Diesel powers about 30% of Europe's vehicles. The market is also speculating that the Trump administration may restrict U.S. diesel exports to ease domestic price pressures, an expectation that exposes European diesel prices to further upside risk. For ordinary households, the impact is already quite direct. Fuel prices in major European markets have risen by more than a quarter, adding to the burden on already stretched families. Charles Rivire, a fisherman on France's northern coast, knows this all too well. The 54-year-old fisherman said fuel costs for trips to and from Paris have risen sharply, forcing him to raise the threshold for taking orders. "I used to be profitable with 12 to 13 Paris clients," Rivire said. "Now I won't go unless I have at least 20 orders, and there are fewer and fewer clients. When I don't go, my income is zero." Consumers begin voting with their feet High oil prices are making the economic advantages of electric vehicles increasingly prominent. According to an analysis by price comparison website Verivox, in Germany, the cost of charging a mid-to-high-end electric vehicle at home is currently about 70% lower than that of a comparable gasoline vehicle. At the same time, automakers are accelerating the rollout of more affordable models. Renault's Twingo E-Tech city EV starts at 19,490 euros (about $22,353), while Volkswagen's Skoda Elroq compact SUV is priced at 37,890 euros. Government subsidies are also playing a role. Germany offers up to 6,000 euros in subsidies to buyers below a certain income threshold; France has introduced a purchase plan with monthly payments below 100 euros, applicable to models such as the Citron -C3. Range anxiety is also fading. The Ford Capri long-range electric SUV can travel more than 600 kilometers on a single charge, comparable to the mid-tier Volvo EX60. Behind the boom, European automakers remain mired in difficulty However, this belated EV boom is not entirely good news for traditional European automakers. Previously, demand fluctuations and a sudden shift in U.S. regulatory policy have cost major automakers tens of billions of euros. Stellantis took a record 25.4 billion euros in impairment losses last year, and the Trump administration's reversal on EV policy made matters worse. Volkswagen, Europe's largest automaker, is pushing ahead with a plan to double global job cuts to 100,000. According to reports, Volkswagen also lowered its profit forecast for this year on Friday due to a sharp contraction in the Chinese market. Chinese brands seize the opportunity to expand The plight of European automakers is opening up more space for Chinese brands. According to data released Wednesday by data company Dataforce, Chinese brands' share of new car sales in Europe rose to nearly 12% in August, a record high. BYD Company Limited's entry-level city EV Dolphin Surf starts at 22,990 euros in Europe and offers consumers in Italy discounts of up to 11,600 euros. Oil prices become politicized, governments forced to act Record oil prices are reshaping Europe's political agenda. In Germany, the ruling coalition led by Chancellor Friedrich Merz has seen its approval ratings continue to slide, and the federal and state governments jointly rolled out a 2.5 billion euro relief package for drivers and businesses last week. In Italy, Prime Minister Giorgia Meloni's government announced a cut in vehicle ownership taxes this month, timed just before next year's general election. Social pressure is also building in France. Over the past week, fishermen have blocked multiple ports along the Mediterranean coast and a fuel depot, and some gas stations in the north have been vandalized. Jacques Vaysse, an independent gas station owner, said: "Drivers are no longer filling up their tanks. Unless the government cuts fuel taxes, there will be social unrest." This article is reprinted from "Wall Street Insights," author: Long Yue; GMTEight editor: Huang Xiaodong.