Demand for electric vehicles across Europe has accelerated in recent months as fuel prices linked to the Iran conflict have increased operating costs for gasoline-powered vehicles, boosting sales of both new and used EVs. Data shared with Reuters show that new electric vehicle registrations across 16 European markets rose 34% year over year in April, while used EV demand also increased as consumers reacted to higher petrol prices and fuel market volatility.

The increase follows a sharp rise in global oil prices after US and Israeli airstrikes on Iran at the end of February disrupted energy markets and raised concerns over supply routes through the Strait of Hormuz. Brent crude prices climbed above US$100 per barrel, increasing fuel costs across Europe and reshaping purchasing decisions in the automotive sector.

According to the European Commission, petrol prices in the European Union rose 12% between late February and mid-March to €1.84 (US$2) per liter. Analysts and automakers said the increase widened the cost gap between internal combustion engine vehicles and EVs, particularly in markets where consumers are highly exposed to fuel price swings.

“This is not a blip, it is an inflection point,” said Gurjeet Grewal, chief executive, UK-based Octopus Electric Vehicles. The company reported a 95% year-over-year increase in demand for new EVs and a 160% increase in used EV demand during April.

Across Europe, electric vehicle growth has expanded beyond established EV markets such as Denmark and the Netherlands into countries where adoption has historically lagged, including Italy. Data from research group New Automotive and industry association E-Mobility Europe show that the surveyed markets account for more than 80% of total car sales across the European Union and the European Free Trade Association.

Automakers reported higher consumer interest immediately following the rise in fuel prices. Volvo Cars said orders increased for its EX30 electric SUV, particularly among consumers more sensitive to oil price fluctuations.

“We are also seeing increased customer enquiries for our fully electric cars even in southern European markets where EV penetration is comparatively lower,” said Erik Severinson.

Renault reported that 50% of its vehicle registrations in Britain during April were electric models. The company also said EV-related inquiries on its UK website increased 48% after the Iran conflict began.

The impact of higher fuel prices has also accelerated activity in the used EV market. According to automotive data company Marketcheck, used EV inquiries rose 28% month over month and reached a record 19.5% share of all vehicle searches. Analysts said consumers are turning to used EVs because they offer lower operating costs and are significantly cheaper than new electric models.

Used EVs in Europe are typically priced between €25,000 and €30,000 (US$27,250 to US$32,700). Analysts estimate that drivers of internal combustion engine vehicles are up to five times more exposed to fuel price volatility than EV owners because electricity prices remain more stable than oil markets.

Marketcheck data showed what the company described as a “clear and sustained escalation” in used EV sales following the start of the conflict.

The economic advantage of electric vehicles has become more visible as oil prices rise. Data from Transport & Environment estimate that operating a petrol-powered car in Europe currently costs around €140 (US$152) per month, compared with approximately €65 (US$71) for an EV.

The organization also estimated that the approximately 8 million EVs currently operating on European roads could save 46 million barrels of oil annually, equal to about €3 billion (US$3.27 billion) in avoided import costs.

The increase in EV demand is providing support to European automakers after a period of slower-than-expected electric vehicle adoption. Although fully electric vehicle sales increased 30% across Europe in 2025, several manufacturers previously reduced forecasts and recorded multi-billion-euro writedowns tied to lower demand expectations.

Companies including Volkswagen AG and Stellantis NV invested heavily in EV production capacity based on projections of faster adoption. Some manufacturers later adjusted production plans amid weaker sales growth and uncertainty around consumer demand and regulations.

Industry analysts cautioned that long-term EV adoption will depend on whether elevated fuel prices persist. Structural barriers, including vehicle affordability, charging infrastructure, and delivery timelines, continue to influence purchasing decisions across European markets.

At the same time, rising diesel prices linked to the Iran conflict are also affecting commercial transportation. In China, sales of new-energy heavy trucks increased 45% year over year to 44,000 units in 1Q26, accounting for more than one-quarter of total heavy truck sales.