Petrol Car Era Nears End as Global Signs Mount

The era of the petrol car is showing clear signs of ending, as rising global oil prices accelerate the shift to electric vehicles (EVs). In China, the world’s largest auto market, high fuel costs have spurred a massive transition in the ride-hailing and taxi sectors. According to the Ministry of Transport, about half of China’s 1.3 million taxis have already switched to EVs, with the figure approaching 100% in major cities. Ride-hailing trips reached 3.05 billion in May, with government data showing a 6% increase since the onset of the Iran conflict in late February compared to the same period in 2025. Didi, the leading ride-sharing platform, added 2 million hybrid or electric vehicles last year, bringing its non-fossil fuel fleet to 8 million, with EVs covering 75% of total distance travelled. Consequently, China’s petrol and diesel consumption fell by 10% and 14% year-on-year in May, even as road freight volume rose 2% and holiday travel hit a record high. Greenpeace projects that by 2035, 90% of all taxi and ride-sharing miles in China will be electric. Analysts note the conflict has accelerated a structural shift, reducing China’s reliance on oil imports, which dropped 41% in June compared to the previous year, helping to ease global crude prices. In Europe, the trend is equally stark. Data from the European Automobile Manufacturers’ Association (ACEA) showed that in June 2026, total car registrations rose 13.1% to 1.4 million units, driven entirely by electrified vehicles. Battery-electric vehicle registrations surged 51%, plug-in hybrids rose 22.7%, and hybrids increased 17.1%, together accounting for nearly 70% of all new cars. Meanwhile, registrations of petrol cars fell 12.2% and diesel cars dropped 16.9%. Chinese brands such as BYD, Chery, and Leapmotor saw their sales multiply by three to six times, while SAIC and Geely also posted strong growth.