Demand for Electric Vehicles Surges in Europe as Oil Price Rises

Demand for electric vehicles (EVs) in Europe has risen as the price of oil surges in the wake of the conflict in the Middle East.

Data provided to Reuters by research group New Automotive and industry group E-Mobility Europe show registrations of new EVs had risen by 34 percent year-over-year in April 2026. There were 201,986 sales in April 2026, compared with 150,624 in April 2025.

The data state that 741,480 EVs have been sold in the first four months of the year, a 31 percent increase on the 564,722 sold in the same period of 2025.

“This isn’t a blip, it’s an inflection point,” said Gurjeet Grewal, CEO of UK-based Octopus Electric Vehicles.

His company registered a ⁠95 percent increase in demand for new EVs year-over-year and a 160 percent rise for secondhand EVs.

The data cover 16 markets that account for more than eight out of 10 car sales in the European Union and the European Free Trade Association, which includes Switzerland, Norway, and Iceland.

They show strong growth in EV sales in Denmark and the Netherlands, where they are already popular, but also ‌in Italy and other markets where ⁠EV take-up has been slow.

Volvo Cars’ Chief Commercial Officer Erik Severinson said their orders had increased, especially in countries “where customers are most sensitive to [an] increase ‌in oil prices.”

He said they had particularly noticed a big rise in demand for their EX30 model, which is a small SUV.

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

French auto maker Renault stated that 50 percent of its registrations in Britain in April were EVs, with enquiries about EVs on its UK website up by 48 percent since the Iran conflict began.

‘Seismic Shift’

“Interest in ​Renault’s EV range has undergone a seismic shift,” said Renault UK Managing Director Adam Wood.

Demand for EVs has lagged behind industry expectations, as auto manufacturers in Europe transformed their production lines to focus on an expected boom in demand following a string of political rules designed to phase out petroleum- and diesel-powered vehicles.

The EU introduced plans to ban the sale of new petrol and diesel cars by 2035, but in December 2025, the European Commission altered this edict and stated that 90 percent of new cars sold from 2035 would have to be zero-emission, rather than 100 percent.

Volkswagen and Stellantis—which owns the Fiat, Citroen, Peugeot, Opel, and Vauxhall brands—both invested heavily in EVs and have been forced to write down billions of dollars’ worth of assets in the last year.

Many of the EVs being sold in Europe are from China. In May 2025, Chinese automaker BYD overtook Tesla sales in Europe for the first time.

International oil prices have risen above $100 per barrel since Feb. 28, when the United States and Israel launched air strikes against Iran, which was followed by Iranian drone and missile strikes and a restriction of trade through the Strait of Hormuz.

The price of the benchmark Brent crude oil climbed to $105.92 per barrel on May 11, after U.S. President Donald Trump dismissed an Iranian response to his peace proposal. The price of Brent was $107.21, as of 11 a.m. ET on May 20.

“The ⁠Iran conflict has fundamentally reshaped how people think about energy security in their daily lives,” said Christian Gisy, CEO of online marketplace OLX. “Europeans have shifted from ‘maybe someday’ to ‘right now’ on electric vehicles.”

Talks between Iran and the United States on ending the conflict are taking place, and at least 54 vessels passed through the Strait of Hormuz during the week ending May 18, according to Lloyd’s List Intelligence data.

In March, Tesla reported that it had sold 17,664 automobiles in the previous month, the first time since December 2024 that it had registered a growth in sales.

Reuters contributed to this report.