Markets

Iran War Sparks a New Electric Vehicle Boom

co-written by newsrooms.ai07. April 2026, 09:14

Man drives electric car. © Michael Kahn auf Unsplash

The war in Iran, which has been ongoing since late February 2026, has triggered a global energy crisis that is noticeably boosting the sales of electric vehicles in the USA, Europe, and in the overseas markets of Chinese manufacturers. Rising petrol prices are prompting consumers on several continents to increasingly look for electric alternatives, both in the new and used car markets.

Background: Oil Price Shock from the Outbreak of War

The war, which broke out on 28 February 2026, has disrupted a vital shipping route, the long-famous Strait of Hormuz, through which around 20 percent of the world’s oil supply is transported. The consequences were immediately felt at the pumps. In the European Union, average petrol costs rose drastically to in some cases more than 2 euros per litre; in the USA, average prices exceeded the 4 US dollars per gallon mark for the first time since 2022.

Europe: Used Electric Cars Boom

The energy crisis is making itself particularly clearly felt in the European used car market. Online platforms in several countries are reporting a sharp increase in demand for used electric vehicles, which are up to 40 percent cheaper than new models and immediately available.

The French used car dealer Aramisauto reported a doubling of the electric car share of total sales, from 6.5 percent to 12.7 percent, within three weeks of the start of the war.
In Germany, the share of electric car search queries on mobile.de tripled from 12 to 36 percent, while dealers recorded 66 percent more enquiries for used electric cars than in February.
The Swedish platform Blocket recorded an 11 percent increase in electric car sales and a 17 percent increase in page views for electric models in the first two weeks of March.
In Norway, electric cars displaced diesel models as the best-selling fuel category on the country’s largest used car market.
The company Olx reported sharp increases in customer enquiries for electric vehicles in France (up 50 percent), Portugal (up 54 percent), Romania (up 40 percent), and Poland (up 39 percent).

“As soon as you cross the 2 euros per litre mark for petrol, it leaves a lasting impression in people’s minds. We are seeing a clearly rising level of interest on the website, which is translating into orders for electric cars and hybrids.” Romain Boscher, CEO of Aramisauto

Analysts also point out, however, that interest in electric vehicles had already been rising before the start of the war. The war had merely accelerated a transformation that was already under way.

USA: Used Market Grows Despite Weak New Car Sales

In the United States, a two-sided picture is emerging. While sales of new electric vehicles fell by an estimated 28 percent year-on-year in the first quarter of 2026, partly as a result of the abolition of the $7,500 tax credit by the Trump administration in 2025, the used market grew significantly.

According to estimates from Cox Automotive, sales of used electric vehicles rose by 12 percent year-on-year in the first quarter of 2026 and by 17 percent compared to the previous quarter. The main cause is considered to be a flood of used vehicles returning to the market following the expiry of lease agreements from the early 2020s. According to credit agency Experian, electric vehicles will account for 15 percent of all expiring lease vehicles by the end of 2026, compared to 7.7 percent in the first quarter.

The price difference between used electric vehicles and used petrol vehicles shrank from an average of $4,923 to $1,334 between February 2025 and February 2026. Analysts assume that affordable used models could serve as an entry point into electric mobility, but warn that persistent concerns about charging infrastructure are likely to hold back a broader boom in new vehicles for the time being.

BYD and Chinese Manufacturers Benefit Worldwide

The Chinese electric vehicle manufacturer BYD is among the biggest beneficiaries of the current development. The company, which has not produced purely combustion-engine vehicles since 2022, is recording exceptionally strong demand in several overseas markets.

BYD CEO Wang Chuanfu stated at an analyst conference that the company was selling as many vehicles in a single day in markets such as Australia, New Zealand, and the Philippines as it would otherwise sell in two weeks. At the Bangkok Motor Show, Southeast Asia’s largest motor show, BYD secured more orders than any other brand during the twelve-day event.

BYD exported a total of 120,083 electric and hybrid vehicles in March 2026, an increase of 65 percent compared to March 2025.
In the first quarter of 2026, BYD sold a total of 321,165 vehicles abroad.
The company raised its overseas forecast for 2026 to 1.5 million vehicles, an increase of 15 percent compared to the previous estimate of 1.3 million.

Overseas markets accounted for 40 percent of total BYD sales in March. With the ramp-up of new production plants in Hungary and Brazil, the company expressed itself as “highly confident” of achieving the annual target of 1.5 million vehicles.

Outlook: Structural Change or Temporary Effect?

Whether the current surge in demand is sustainable remains a matter of debate among experts. Analysts point out that while high petrol prices influence purchasing decisions in the short term, structural obstacles such as inadequate charging infrastructure in certain markets continue to persist. At the same time, manufacturers such as Ford and General Motors are planning to launch a new generation of more affordable electric vehicles in the coming years.

Observers agree that the current energy crisis is accelerating a transition that had already begun before the outbreak of the Iran war. Whether the increased demand persists after the end of the crisis will depend significantly on how petrol prices, vehicle prices, and charging infrastructure develop.