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.
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Day four of the World Urban Forum (WUF) in Baku brings a packed agenda on sustainable cities and the global housing crisis, with sessions on green housing, smart cities, public spaces and urban rights taking place on Wednesday (20 May) at Baku Olympic Stadium in Azerbaijan.
UEFA has imposed a lifetime ban on Petr Vlachovsky, a Czech women’s football coach, after finding him guilty of serious misconduct involving the secret filming of players in changing rooms.
Russia’s ambassador to the United Nations Vasily Nebenzya warned on Tuesday (19 May) that Moscow could retaliate against Baltic states if Ukraine launches military drones from that region. Latvia, the United States and Ukraine responded strongly during a UN Security Council meeting.
Lithuania on Wednesday issued an “air danger” warning urging residents to seek shelter and temporarily suspended operations at the capital’s airport amid fears that drones had entered the country’s airspace, as tensions between Russia and the Baltic states continue to escalate.
The World Urban Forum (WUF13) continues in Baku, Azerbaijan on 18 May, addressing the global housing crisis. The day’s agenda includes the official opening press conference, the WUF13 Urban Expo opening and a ministerial dialogue on the Nairobi Declaration to advance Africa's urban agenda.
United Nations World Urban Forum 13 continues in Baku, Azerbaijan on 19 May with sessions and roundtable discussions focused on strengthening dialogue and advancing cooperation in urban development. Organisers say there are nearly 3 billion people globally who face some form of housing inadequacy.
A 5.2 magnitude earthquake struck China’s Guangxi region early on Monday, killing two people and forcing more than 7,000 residents in Liuzhou to evacuate as rescue efforts continued.
Azerbaijan and Georgia have agreed to resume daily passenger train services on the Baku-Tbilisi-Baku route from 26 May, 2026, marking a major step in restoring regional rail connectivity after services were suspended in 2020 due to the COVID-19 pandemic.
Pakistan has deployed around 8,000 troops, fighter jets and air defence systems to Saudi Arabia under a mutual defence agreement, according to security officials and government sources familiar with the arrangement.
South Korea’s Samsung Electronics is facing its largest potential labour action in years, with tens of thousands of workers preparing for a prolonged strike over bonuses and profit-sharing at a time when the company is benefiting from a global artificial intelligence (AI) driven chip boom.
Government bond markets from Tokyo to New York extended losses on Monday (18 May) as rising energy prices linked to the Middle East conflict heightened inflation concerns and reinforced expectations that major central banks could keep interest rates higher for longer.
Negotiations between Samsung Electronics and its workforce on Wednesday have broken down, officials said, raising fresh concerns over potential disruption to South Korea’s export-heavy economy.
By the time American shoppers began noticing higher prices on everything from trainers to televisions, the world's two largest economies were already deep in a trade war that left the world wondering how it would end.
The Strait of Hormuz remains a vital maritime chokepoint and serves as the primary artery linking the Persian Gulf to international energy markets. With approximately 20% of global oil and gas shipments transiting this waterway, it is the backbone of energy security for Asia, Europe, and beyond.
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