Iran Conflict Fuels Global Rise in Electric Vehicle Interest

(SeaPRwire) –   Prior to the outbreak of the conflict in Iran, the global uptake of electric vehicles was primarily driven by several emerging economies, including India, Mexico, and Brazil, which reported higher EV sales than more developed nations like the U.S. and Japan. Now, the sharp increase in global oil prices, triggered by the closure of the Strait of Hormuz, appears to have unexpectedly benefited the EV market, with heightened interest and sales observed in numerous countries.

United States

At the beginning of the year, the electric vehicle movement in the U.S. seemed to be losing momentum. Sales in the final quarter of 2025 reached their lowest point since the end of 2022, as government EV subsidies from the Biden era expired and domestic automakers scaled back their investments in electric vehicle production.

However, first-quarter data for 2026 indicates a rebound, with used EV sales climbing 12% higher than the same period last year and 17% higher than the preceding quarter. A contributing factor pushing buyers towards these vehicles is likely the elevated gas prices, which recently surpassed $4.00 a gallon for the first time in four years.

U.K. & Europe

In the U.K., electric car sales achieved a new record, with 86,120 vehicles sold in March. Octopus Electric Vehicles, a U.K.-based EV specialist, announced on March 25 that it had seen EV leasing inquiries increase by 36% since the conflict commenced.

The French online used-car retailer Aramisauto reported that its share of EV sales nearly doubled from February 16 to March 9, rising from 6.5% to 12.7%. During the same period, sales of gasoline-powered models decreased from 34% to 28%, and diesel model sales fell from 14% to 10%.

Germany’s largest online car market, mobile.de, informed Reuters that the proportion of EV searches on its website has tripled since the start of March, moving from 12% to 36%. Car dealers also reported a 66% increase in inquiries for used EVs compared to February.

Asia

Asia receives 80% of the crude oil transported through the Strait of Hormuz, leaving the region significantly impacted by the shutdown. This uncertainty is leading to an acceleration in EV adoption across many countries.

South Korea reported that registrations for electric vehicles more than doubled in March compared to the previous year, partly due to rising fuel prices and government subsidies. In Malaysia, the distributor for Chinese EV company BYD told Reuters that it observed a notable increase in inquiries and customer interest in March compared with the first two months of the year. In Pakistan, electric rickshaws have been selling out, according to Bloomberg.

Nepal, on the other hand, has distinguished itself with above-average EV adoption rates. This pre-war trend has helped shield many residents from the effects of the surge in oil prices. According to the latest data from the energy think tank Ember, EVs constituted 76% of new car sales in 2024.

New Zealand & Australia

In New Zealand, over 1,000 EVs were registered in the week ending March 22, nearly doubling the figure from the week prior. This marked the country’s busiest week for electric vehicle registrations since the end of 2023, as stated by Transport Minister Chris Bishop.

Australia, meanwhile, has already been experiencing a rise in EV sales in recent years, but has seen a fresh surge in interest as consumers grapple with increasing fuel costs.

As Australian Prime Minister Anthony Albanese commented at the end of March: “I don’t think there’s anyone out there today who has bought an electric vehicle who’s regretting the decision at this point in time.”