Iran‑Israel war drives European electric‑vehicle sales up 34% and hits BMW profits

The outbreak of hostilities between Iran and Israel has pushed fuel prices higher, prompting a sharp rise in demand for electric cars across Europe. Reuters‑cited data from New Automotive and E‑Mobility Europe show pure‑electric registrations climbing 34% in May across 17 EU markets, bringing EVs to almost 25% of all new registrations. Automakers such as Renault report order books rising up to 50% in some countries, while Ford notes similar gains. The surge is aided by cheaper Chinese EV models and lower prices for used electric vehicles, which are now selling for about a third of their original value in the UK.

At the same time, German automaker BMW AG warned of a significant decline in pre‑tax earnings for the year, citing weakened demand in China and the lingering impact of the Middle‑East crisis on consumer confidence and energy costs. The profit outlook was cut, with the EBIT margin now expected at 1‑3% versus the previous 4‑6%, and the share price fell more than 7% in European trading. BMW also announced intensified cost‑reduction measures to mitigate the earnings hit.