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Soaring fuel prices drive EV brands' popularity in Germany

Surging costs, cutting-edge technologies push sharp gains in auto registrations

CHINA DAILY/XINHUA | Updated: 2026-04-20 09:02
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Visitors check out BYD vehicles at the IAA Mobility 2025 in Munich, Germany, on Sept 5. ZHANG FAN/XINHUA

BERLIN — Rising fuel prices, along with competitive pricing and advanced technology, are boosting sales of Chinese electric vehicle brands in Germany, as consumers increasingly weigh cost, features and performance alongside environmental considerations.

Battery EV registrations reached 70,700 in March, up 66.2 percent year-on-year, while those for plugin hybrid EVs rose 13 percent to 29,900, according to figures released by Germany's Federal Motor Transport Authority on April 7.

Chinese automakers also saw increased traction in March, with brands such as BYD and Leapmotor recording roughly threefold year-on-year increases in registrations, while Xpeng more than doubled its figures, reflecting growing acceptance among German consumers.

Rising fuel costs are a key driver. Diesel reached around 2.5 euros ($2.94) per liter on April 7, while E10 gasoline stood at approximately 2.24 euros, according to the General German Automobile Club.

The surge follows disruptions to oil transport routes linked to tensions in the Middle East, adding to Europe's already elevated energy costs.

"Filling my Audi Q5 now costs 125 euros, up from 90 euros before the Middle East conflict," said Andreas Heumann, a Berlin resident considering a plug-in hybrid. "If prices stay high, switching cars becomes an economic decision."

For many households, higher running costs for petrol and diesel vehicles are prompting changes in purchasing behaviors. Some buyers are delaying vehicle purchases, while others are increasingly shifting to electric alternatives.

"EVs are becoming central to how consumers manage cost uncertainty," said Zheng Yun, senior partner at Munich-based consultancy Roland Berger. "When fuel prices rise sharply, the total cost of ownership for combustion vehicles increases immediately, making EVs comparatively more attractive."

The German government has moved to temper the impact. Since April 1, petrol stations have been limited to one price increase per day to reduce volatility, while Germany's economy and energy minister, Katherina Reiche, has proposed lowering household electricity taxes. Analysts, however, caution that such measures may only partially offset the sustained pressure from high fuel prices.

Thus, EVs are increasingly viewed not just as an environmentally friendly choice, but also as a rational economic decision. Dmitrij Kolesnik, a Berlin-based dealer, said that Chinese EVs are gaining recognition among consumers for their competitive pricing, solid quality and advanced technology.

The change is evident on showroom floors. At a BYD dealership in central Berlin, sales staff said customers who previously took weeks to decide are now making purchases within days.

Magrin Tommaso, an Italian hairdresser based in Germany who recently test-drove several models of Chinese EVs, said the combination of lower operating costs and advanced in-car technology made them stand out as "a smart product choice". He ultimately decided to purchase a BYD Atto 3.

Policy incentives, including subsidies of up to 6,000 euros for new EVs from 2026, are supporting demand, though analysts note financial measures alone are not driving the shift. Consumers are increasingly basing their decisions on running costs, features and long-term value, reflecting a broader shift toward electric mobility in Germany.

Chinese manufacturers, in particular, are leveraging strengths in battery supply chains, cost control and software integration to expand their presence. Zheng noted that this marks a shift from merely exporting vehicles to establishing brand recognition and long-term market positions in Europe.

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