The effects of the Middle East conflict are beginning to reveal themselves in every aspect of our daily lives now – from commuting to and from work to the overall increase in the cost of living. Hardly a person on the planet – perhaps bar some isolated subsistence farmers or uncontacted tribes deep in the Amazon Rainforest – have been spared the consequences.
So far, the conflict has reportedly cost the United States more than 25 billion dollars.
Online vehicle forums debate the cost of owning an internal combustion engine vehicle versus an electric vehicle. Some commentors even suggest that charging their EV while at work is helping them offset electricity price hikes at home.
Supply chain disruption and inflation fears are gripping world markets, and the worst is likely yet to come.
While there was certainly some resistance in recent years against the forced adoption of electric and plug-in hybrid electric vehicles, their application now seems very appealing. And recent statistics from Europe show this in no uncertain terms.
“During the first quarter of 2026, and in March 2026, the Volkswagen Group was again the largest car producer in Europe (European Union, EFTA, and UK), followed by Stellantis and Renault. Despite weaker sales, VW remained the top-selling brand in Europe, while strong sales moved Skoda into the second place for the first time ever. The Renault Clio was the best-selling car model in Europe during 2026 Q1 while the Tesla Model Y was Europe’s favourite car model in March 2026. The European new car market expanded by 4.1% to 3 521 110 cars in the first quarter of 2026, with all-electric car sales taking a record 20.6% market share.”
“Škoda Auto has recorded a strong start to 2026, emerging as Europe’s second best-selling car brand during the first quarter, supported by robust demand, expanding electric vehicle adoption and solid financial performance. Between January and March 2026, the company delivered 271 900 vehicles worldwide, reflecting a 14 per cent year-on-year increase. In Europe, deliveries rose 17.1 per cent to 222 500 vehicles, significantly outpacing overall market growth. March marked the highest monthly delivery volume in the company’s history in the region, with over 90 000 vehicles delivered.”
“The strong performance was driven in part by growing demand for electric vehicles. Models such as the Elroq and Enyaq featured prominently among Europe’s top-selling battery electric vehicles, contributing to a near doubling of global BEV deliveries. Electrified vehicles accounted for more than a quarter of total deliveries in Europe during the quarter, underscoring the company’s progress in its transition towards sustainable mobility.”
The company also reported growth in key international markets. In India, deliveries increased to 17 400 vehicles, while North African markets such as Morocco and Egypt recorded strong gains.”
Škoda Auto is a wholly owned subsidiary of the Volkswagen Group and the Czech automaker joined the Volkswagen family in 1991.
So are you a glass half full or half empty person? There are always positives that emerge from these circumstances. On recent automotive announcements and investments in South Africa, a colleague said to me: “What do they know that we don’t know?”
And that got me thinking. The new budget conscious consumer is looking for budget conscious purchases in every aspect of their daily lives. And when it comes to larger financial decisions like purchasing a vehicle, their budget is probably the most important aspect in their decision-making process, closely followed by aspirational characteristics like onboard tech.
New foreign automotive investment in South Africa can only have benefits for the local manufacturing industry – both upstream and downstream – perhaps it comes down to how you feel about legacy brand loyalty or new brand loyalty?
Manufacturing is a very important contributor to South Africa’s GDP and I’m all for growing that sector of the economy in this country in whichever way it might happen, from advanced, smart manufacturing through to skilled artisans laying down perfect welds, the opportunities are out there.
Damon Crawford
Online Editor / Journalist
