A record 12% of German drivers who replaced a combustion-engine car in the second quarter chose an EV, according to a survey conducted for insurer Huk-Coburg and reported by Bloomberg. The rate was more than double the level recorded in January and February, with the insurer pointing to the US-Israeli war on Iran and the resulting fuel price spike as a specific driver of the shift.

Fuel Costs Push More German Drivers Toward EVs

Drivers covering more than 12,000 kilometers a year switched to EVs at a noticeably higher rate than the average buyer. Nearly a quarter of respondents said fuel costs alone had pushed them to consider or prioritize an EV for the first time.

Diesel and petrol prices in Germany climbed above €2 a liter after the war began in late February, marking the first time prices had crossed that level since 2022. According to official data from Destatis, prices were still comfortably above €2 a liter as of last week.

The fuel-price surge followed an earlier push from Germany’s government. In January, it rolled out a subsidy program offering purchase and leasing incentives for zero-emission vehicles, which had already helped drive EV conversion rates to a record in the first quarter.

The war in Iran added another incentive for buyers. Consumers who might have waited out an incentive program were instead calculating the impact of higher fuel bills, with the two pressures reinforcing each other.

Europe Sees a Broader EV Sales Increase

The shift is not limited to Germany. Across Europe, new EV registrations contributed to the continent’s largest jump in new-car sales since late 2023 when June figures were released.

For BMW, the timing comes as the automaker expands its Neue Klasse lineup, with a growing number of electric models arriving as fuel costs give German consumers another reason to consider an EV.

BMW’s Neue Klasse Lineup Expands

The BMW iX3 (NA5) launched the Neue Klasse era and established the underlying architecture used by the models that follow. Its technology includes 800V Gen6 eDrive motors, cylindrical battery cells, the four-computer “Heart of Joy” setup and the Panoramic iDrive interface.

The i3 (NA0) followed as BMW’s electric answer to the 3 Series. It features a narrower twin-kidney grille that nods more to the 2002 and 2500 than to the current i4, positioning it as a model that could pull German commuters directly out of diesel 320ds.

BMW’s rollout then continues with the iX4 (NA7), a coupe-SUV version of the iX3 that shares its powertrain while trading headroom for a lower roofline. The 40 xDrive and 50 xDrive versions are due before an M60 xDrive follows in March 2027.

The iX5, which will be built alongside the next combustion X5 rather than as a standalone model, adds a 60 xDrive to the existing 40 sDrive for the 2027 model year.

Above it sits the iX7, the electric version of BMW’s largest SUV, positioned against the Cadillac Vistiq and Mercedes EQS SUV. BMW has also teased an i3 Touring wagon as the Neue Klasse era’s answer for buyers who still want a longroof.

A refreshed i7 will bring the new architecture to BMW’s flagship sedan for the first time. It will feature a 112.5 kWh battery pack and a claimed WLTP range of up to 452 miles once EPA certification catches up.

Electric M3 Joins BMW’s 2027 Plans

BMW’s Neue Klasse expansion also includes the electric M3, badged ZA0 and due in 2027. It will be BMW M’s first true electric performance car rather than a tuned-up i4 or iX wearing an M badge.

Franciscus van Meel, the head of BMW M, has framed the model as a car intended to set a new benchmark for the segment rather than split the difference between EV efficiency and M-car theater.

With a refreshed i5 also planned for 2027, BMW is preparing to launch roughly one car every few months into a market that has gained a specific incentive to move toward electric vehicles.

BMW’s Neue Klasse Rollout Meets Rising EV Demand

BMW has said Neue Klasse technology will reach around 40 new or updated models by the end of 2027. Germany’s fuel-price-driven EV surge is arriving in the middle of that rollout.

The timing remains dependent on factors outside BMW’s control. The war in Iran could end tomorrow and fuel prices could retreat with it, while a subsidy program is not a permanent floor under demand.

BMW spent years facing criticism from analysts for moving more slowly on EVs than Tesla or BYD while it completed the Neue Klasse platform rather than rushing a half-measure to market.

For now, however, the automaker’s expanding electric lineup is arriving as German drivers face higher fuel costs. The combination of new EV incentives and pressure at the pump has helped push electric-vehicle adoption to a record level among drivers replacing combustion-engine cars.