European demand for electric vehicles (EVs) surged due to high fuel prices linked to the Iran war, according to data shared with Reuters. Despite a 30% increase in EV sales across Europe in 2025, adoption has fallen short of industry expectations.
Carmakers like Volkswagen and Stellantis, which invested heavily in EV demand, have recorded multi-billion-dollar charges for asset writedowns. The upsurge in international oil prices to above $100 per barrel since the US and Israeli airstrikes on Iran at the end of February led to unprecedented energy supply disruption.
“This isn’t a blip, it’s an inflexion point,” said Gurjeet Grewal, CEO of UK-based Octopus Electric Vehicles. Demand for new EVs increased by 95% year-on-year in April, and used EVs rose by 160%.
Britain, as a net importer of energy, has been particularly exposed to inflation increases. Across Europe, data from New Automotive and E-Mobility Europe showed registrations of new EVs rose 34%, year-on-year, in April.
Volvo Cars’ Erik Severinson noted the rise in orders for its entry-level small EX30 electric SUV, where customers are most sensitive to oil price increases. Renault UK managing director Adam Wood said 50% of its British registrations were EVs, with EV-related enquiries on their UK website up 48% since the Iran war began.
April registrations reflect the full impact of the Iran war. Markus Haupt, CEO of Seat/Cupra, reported that EVs made up nearly 60% of orders in Germany, above their quota of 25%.
Online marketplaces have also seen increased searches for new and used EVs, with a pronounced jump for Chinese brands with more affordable models. Carwow’s share of EV enquiries rose to 75% from around 40%, while conventional gasoline engine cars fell to 16% from 33%. Purchase inquiries for BYD grew by 25,000%, Leapmotor increased by 436%, and Xpeng rose by 153%.
Past spikes in fuel prices have seen consumers switch back to less efficient vehicles once the price pain eased. However, industry players say this time could be different as Europeans shift from ‘maybe someday’ to ‘right now’ on electric vehicles.