The rise in fuel prices related to the war in Iran has also caused demand for new and used electric cars to grow rapidly, thus giving a much-needed boost to the car manufacturing industry, reports Reuters.
Although the volume of sales of fully electric cars in Europe rose by 30% in 2025, the overall arrival of electric cars on the continent’s roads has lagged behind manufacturers’ expectations. Automakers, from Volkswagen to Stellantis, have invested heavily in the hope of much higher demand for electric cars, and have indicated expenses of billions over the past year to cover asset write-offs.
Buyers’ calculations have been changed by the rise in oil prices on the international market, which rose well above 100 dollars per barrel of oil after the attacks launched by the United States and Israel on Iran in late February. Gurjeet Grewal, chief executive of British company Octopus Electric Vehicles, said it was not a moment but a turning point. The company has seen a 95% increase in demand for electric cars compared to previous years, and in April demand for new electric cars rose by 160%. Britain imports most of its energy resources and is therefore particularly sensitive to rising inflation.
Data from the research group New Automotive and the industry group E-Mobility Europe, which have come into contact with Reuters, show that, compared to previous years, the number of new electric car registrations rose by 34%. The data shows that the popularity of electric cars has grown both in Denmark and the Netherlands, where they were already popular, and in, for example, Italy, where the electric car market has been very slow to conquer.
Erik Severinson, chief commercial officer of Volvo Cars, said that the number of orders has increased, especially in the EX30 SUV segment.
He said he was seeing increased demand for electric cars even from southern Europe, where electric cars are not usually popular.
French carmaker Renault said 50% of its cars built in Britain were electric, and British demand for Renault electric cars had risen by 48% since the war in Iran began. Adam Wood, Renault’s UK director, said interest in the company’s electric models had seen a “tremendous” change. An anonymous source at the company said it was working on expanding production.
Markus Haupt, chief executive of Seat/Cupra, said in early May that his sales team in Germany had reported that electric cars were making up 60% of orders. That was well above the company’s target of 25%. Haupt said the company already had a production budget for the year but might need to increase its electric car production.
Online classifieds platforms are also seeing an increasing number of people looking for new and used electric cars, with Chinese-made electric cars leading the way, as they are cheaper. Since the start of the Iran war, German classifieds site Carwow has seen demand for electric cars rise by 75%, compared to just 16% for cars with internal combustion engines. Philipp Sayler von Amende, CEO of the company, said the strong demand for Chinese electric cars was particularly striking. Brands like BYD have gone from niche products to the most sought-after.
During previous fuel crises, buyers have also looked for cars with lower fuel consumption, but once the crisis was over and a visit to the gas station was no longer so painful, they have always returned to their regular cars. However, industry representatives believe that this will not be the case this time. OLX CEO Christian Gisy said the conflict in Iran has changed the way people think about energy security, and Europeans are no longer thinking “maybe someday” when it comes to electric cars, but “right now.”
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