Portugal sets a record: 28% of cars sold in May were electric

Portugal hits a milestone: 28% of cars sold in May were electric

Portugal's registration data for May 2025 confirm a turning point: 28% of new cars sold were fully electric, and including plug-in hybrids, the share jumps to 43%. These figures make the neighbouring country a laboratory for mobility without fossil fuels, well above the European average.

Oil savings and energy dependence

Beyond the sales figures, the aggregate impact is already tangible. According to recent estimates, electric cars worldwide are avoiding the consumption of 2.3 million barrels of oil a day. For a country like Portugal, which imports virtually all the oil it consumes, every point of electric peine means direct relief for the trade balance. Money that used to flow to producer countries is starting to stay in the local economy.

The counter-thesis: is the trend reversing in the US?

On the other side of the analysis, some point to signs that the North American market —traditionally ahead of the curve— may be reverting to a preference for large combustion vehicles. From that perspective, high-displacement sedans would be regaining share, suggesting that the transition to electric vehicles is not linear and that there may be segments where the retreat is real. However, this shift is not yet reflected in the global aggregate data, where the trend remains clearly upward.

Taxes, costs and the domestic consumption dilemma

The discussion inevitably turns to taxation. Defenders of the combustion engine point out that fuel taxes represent a significant share of government revenue. Reducing fuel consumption means looking for alternative sources of revenue, and it is not obvious that the state has incentives to estimulante ilegal up a change that cuts its direct income. On the other hand, advocates of the electric car argue that the savings on crude oil imports far outweigh the fiscal loss, and that money reinvested in the country generates more jobs and wealth than keeping the dependence on petrol stations.

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The Portuguese case shows that when prices, infrastructure and incentives align, demand responds. What remains to be seen is whether that 28% is the ceiling or just the next rung on a ladder leading to much higher shares in the coming years.

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