Demand for electric vehicles has surged across Europe as elevated fuel prices linked to the Iran conflict push consumers toward new and second-hand EVs, according to data shared with Reuters. It is providing a boost to an auto industry that has struggled with slower-than-expected adoption.
Although fully electric car sales rose by around 30% across Europe in 2025, industry uptake has lagged earlier expectations, forcing major automakers, including Volkswagen and Stellantis, to book multi-billion-euro writedowns on EV-related investments.
That picture has shifted sharply following a rise in global oil prices to above $100 per barrel after U.S. and Israeli airstrikes on Iran at the end of February escalated regional tensions and disrupted energy markets.
“This isn’t a blip, it’s an inflection point,” said Gurjeet Grewal, CEO of UK-based Octopus Electric Vehicles, which reported a 95% year-on-year increase in new EV demand and a 160% rise in used EV demand in April.
The UK, as a net energy importer, has been particularly affected by higher inflation and rising living costs linked to energy price pressures.
Across Europe, data from New Automotive and E-Mobility Europe covering 16 markets (representing more than 80% of EU and EFTA car sales) showed new EV registrations rose 34% year-on-year in April.
Growth was seen not only in established EV markets such as Denmark and the Netherlands, but also in countries like Italy, where electric vehicle adoption has historically been slower.
Automakers are now responding to the demand shift.
Volvo Cars said orders for its entry-level EX30 electric SUV have increased, particularly in price-sensitive segments. Renault reported that EVs accounted for about 50% of its UK registrations in April, with online enquiries rising 48% since the Iran conflict began.
“Interest in Renault’s EV range has undergone a seismic shift,” said Renault UK managing director Adam Wood.
A source at the company said Renault is considering increasing production of electric models.
Seat and Cupra, brands under Volkswagen, also reported strong EV demand, with internal sales data showing electric models accounting for nearly 60% of orders in Germany, above targets.
“We have a production budget for this year,” said Cupra chief executive Markus Haupt. “But maybe we’ll need to increase the amount of EVs.”
Online car marketplaces are also reporting a sharp shift in consumer behaviour toward electric vehicles, particularly Chinese brands offering lower-cost models.
German platform Carwow said EV enquiries have risen to 75% of total searches from around 40% since the conflict began, while interest in petrol cars has fallen significantly.
Carwow reported major increases in searches for Chinese EV brands, including BYD, Xpeng and Leapmotor, which analysts say are gaining ground in Europe’s increasingly price-sensitive market.
“What is striking is the strong momentum of Chinese manufacturers,” said Carwow Germany managing director Philipp Sayler von Amende.
Rival platform OLX said EV enquiries in France were up 80% since the start of the war.
Industry analysts say the shift could mark a longer-term change in consumer behaviour, noting that previous fuel-price spikes (such as in the 1970s) eventually reversed once prices eased.
However, some executives believe the current energy shock may have a more lasting impact.
“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,” he concluded.
U.S. President Donald Trump said on Wednesday that the memorandum of understanding signed with Iran to end the conflict was "over", adding he did not ...
Flooding across parts of China is expected to worsen as Super Typhoon Bavi approaches the country's coast this weekend, becoming the second tropical c...
More than 6,300 people from around the world have begun the annual Peace March in Bosnia and Herzegovina, retracing the route taken by thousands of Bo...
Flooding across parts of China is expected to worsen as Super Typhoon Bavi approaches the country's coast this weekend, becoming the second tropical cyclone to strike the country in a week. Authorities have warned that more provinces could be affected.
More than 6,300 people from around the world have begun the annual Peace March in Bosnia and Herzegovina, retracing the route taken by thousands of Bosniaks who fled the Srebrenica genocide in July 1995.
Christopher Nolan’s The Odyssey is set to become one of 2026’s biggest films, bringing Homer’s ancient epic to life with a $250 million budget. From real ships and thousands of extras to heated debates over casting choices, here are 10 facts about the ambitious adaptation.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 8th of July, covering the latest developments you need to know.
The U.S. says it has launched strikes on Iran after alleged attacks on three commercial vessels in the Strait of Hormuz. Washington described the action as a response to threats against civilian shipping and a breach of the ceasefire.
NATO leaders are unveiling multi-billion-dollar arms deals in Ankara as President Donald Trump joins the summit, highlighting Europe's increased defence spending amid tensions over Russia and Iran, and following years of U.S. criticism of the alliance.
U.S. President Donald Trump said on Wednesday that the memorandum of understanding signed with Iran to end the conflict was "over", adding he did not want to engage with Tehran, calling the Iranian leadership "sick people".
Massive crowds are gathering in the streets of Tehran on Monday for the funeral procession of Iran's slain former supreme leader, Ali Khamenei, as part of a week-long farewell. His son and designated successor, Mojtaba Khamenei, has yet to make a public appearance.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 7th of July, covering the latest developments you need to know.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
Rocket Lab has agreed to acquire Iridium Communications in an $8 billion deal, giving the space company a global satellite communications network and accelerating its expansion beyond launch services. The acquisition marks a major step in its ambition to become a fully integrated space business.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment