Europe EV sales leap as Iran war pushes up petrol pump prices

Demand for electric vehicles in Europe has surged as ​high fuel prices linked to the Iran war propel sales of new ‌and ​second-hand EVs, data exclusively shared with Reuters shows, providing a much-needed boost to the auto industry. Although sales of fully electric cars grew 30% across Europe in 2025, EV adoption on the continent has lagged industry expectations. Carmakers from Volkswagen to Fiat-owner Stellantis, which had invested heavily in expectation of much higher EV demand, have over the ‌last year booked multi-billion-dollar charges to cover asset writedowns.

Buyers' calculations have been transformed by an upsurge in international oil prices to well above $100 a barrel since U.S. and Israeli airstrikes on Iran at the end of February unleashed a wider conflict and led to unprecedented energy supply disruption. "This isn't a blip, it's an inflection point," said Gurjeet Grewal, CEO of UK-based Octopus Electric Vehicles, which registered a 95% year-on-year increase in demand for new EVs and 160% rise for ‌used EVs in April.

As a net importer of energy, Britain has been particularly exposed to increases in inflation and food prices. Across Europe, data provided to Reuters by research group New Automotive and industry group ‌E-Mobility Europe, showed registrations of new EVs rose 34%, year-on-year, in April.

The data covers 16 markets that account for more than 80% of European Union and European Free Trade Association car sales. It showed strong EV growth in Denmark and the Netherlands, where electric cars are already popular, but also in markets such as Italy, where EVs have been slow to take off.

Volvo Cars' Chief Commercial Officer Erik Severinson said the Swedish automaker's orders have risen, especially for its entry-level small EX30 electric SUV "where customers are most sensitive to increase in oil ⁠prices". "We are ​also seeing increased customer enquiries in our fully-electric cars even ⁠in southern European markets where EV penetration is comparatively lower," Severinsson said.

CARMAKERS CONSIDER PRODUCING MORE EVS France's Renault said 50% of its registrations in Britain in April were EVs, with EV-related enquiries on its UK website up 48% since the Iran war began. April registrations - which lag ⁠orders - are the first to fully reflect the impact of the Iran war.

"Interest in Renault's EV range has undergone a seismic shift," said Renault UK managing director Adam Wood. A source at the automaker, speaking on condition of anonymity, said the company ​was working to raise production.

Markus Haupt, CEO of the Seat/Cupra - both Volkswagen brands - said in early May his sales team in Germany reported that EVs made up nearly 60% of orders, well ⁠above their quota of 25%. "We have a production budget for this year," Haupt said. "But maybe we'll need to increase the amount of EVs."

CHINESE BRANDS APPEAL FOR AFFORDABILITY Online marketplaces have also experienced increased searches for new and used EVs, with a pronounced jump for Chinese ⁠brands with ​their more affordable models.

Since the war began, German marketplace Carwow said its share of EV enquiries has risen to 75% from around 40%, while conventional gasoline engine cars have fallen to 16% from 33%. "What is striking is the strong momentum of Chinese manufacturers," said Carwow Germany Managing Director Philipp Sayler von Amende. Major names like BYD have gone from "niche brands" to some of the most sought-after.

Carwow said purchase inquiries for BYD on ⁠its website grew by a massive 25,000% in the first quarter, while those for Leapmotor increased 436% and Xpeng rose 153%. Rival online marketplace OLX said customer enquiries for EVs on its French website were up 80% since ⁠the war began.

During past spikes in fuel prices dating ⁠back to the 1970s, consumers also switched to more fuel-efficient cars but changed back to less efficient ones when the pain at the fuel pump abated. This time could be different, industry players said.

"The Iran conflict has fundamentally reshaped how people think about energy security in their daily lives," said OLX CEO Christian Gisy. "Europeans have shifted from 'maybe ‌someday' to 'right now' on electric ‌vehicles."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)