European EV Sales Surge as Iran War Marks Turning Point in Public Acceptance
Following soaring fuel prices caused by the Iran War, demand for electric vehicles (EVs) in Europe saw strong growth in April. Data exclusively obtained by Reuters shows a 34% year-on-year increase in new EV registrations across 16 European markets, reversing last year's weaker-than-expected performance. Automakers like Volkswagen and Renault, along with sales platforms like Carwow, have all confirmed a significant rise in orders and searches, especially for affordable Chinese brands. Industry insiders believe this marks a fundamental shift in consumer views on energy security and a market turning point, not just a fleeting trend.
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- 📰 Published: May 20, 2026 at 19:24
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According to data exclusively obtained by Reuters, demand for electric vehicles in Europe is growing strongly amid high fuel prices caused by the Iran War, reversing last year's performance which fell short of industry expectations. Some industry players even believe the European EV market has reached a turning point.
Data from British research firm New Automotive and European industry organization E-Mobility Europe shows that new EV registrations in 16 European markets grew by 34% in April compared to the same period last year. These markets account for over 80% of total car sales in the European Union (EU) and the European Free Trade Association (EFTA).
Furthermore, the data indicates that EV sales not only surged in markets with already high acceptance rates like Denmark and the Netherlands but also saw significant growth in slower-adopting markets such as Italy.
Gurjeet Grewal, CEO of British EV company Octopus, stated that its new car demand in April skyrocketed by 95% year-on-year, while used car demand surged even more, by 160%. "This is not a blip, it's a turning point," he said.
Although sales of pure electric vehicles across Europe also saw a 30% growth rate last year, the pace of adoption did not meet industry expectations, forcing major German automaker Volkswagen and Fiat's parent company Stellantis to recognize billions of dollars in asset impairment charges.
However, after US and Israeli airstrikes on Iran on February 28 this year triggered an unprecedented energy supply disruption, international oil prices soared past $100 per barrel, leading to a major shift in the calculations of prospective car buyers.
Erik Severinson, Chief Commercial Officer at Swedish automaker Volvo Cars, said that their EV orders are on an upward trend, especially for the entry-level small electric SUV, the EX30. Buyers interested in this model are typically "most sensitive to rising fuel prices."
French automaker Renault also said that half of its new cars registered in the UK market in April were electric, and since the outbreak of the Iran War, EV-related queries on its UK website have increased by 48%.
Markus Haupt, CEO of Volkswagen's Seat and Cupra brands, revealed earlier this month that their sales team in Germany reported that the share of EVs in new orders has approached 60%, much higher than the company's original allocation of 25%.
Searches for new and used EVs on European vehicle trading websites have also seen significant growth, with a particularly sharp increase in inquiries for more affordably priced Chinese brands.
German trading platform Carwow noted that after the Iran War began, the proportion of inquiries for EVs on its platform jumped from about 40% to 75%, while traditional cars dropped from 33% to 16%. Among them, inquiries for Chinese EV giant BYD grew by an astonishing 250 times in the first quarter of this year, while two other Chinese EV makers, Leapmotor and Xpeng, also saw surges of 436% and 153%, respectively.
Another European vehicle trading platform, OLX, also stated that since the start of the Iran War, inquiries for EVs on its French website have jumped by 80%.
In the 1970s, a similar situation occurred where consumers opted for more fuel-efficient cars after oil prices soared. However, when oil prices fell and the burden of refueling eased, consumers switched back to less fuel-efficient models. Yet, industry insiders suggest this time may be different.
OLX CEO Christian Gisy pointed out, "The Iran conflict has fundamentally reshaped how people view energy security in their daily lives. The European attitude towards EVs has shifted from 'maybe someday' to 'buy now'."
Data from British research firm New Automotive and European industry organization E-Mobility Europe shows that new EV registrations in 16 European markets grew by 34% in April compared to the same period last year. These markets account for over 80% of total car sales in the European Union (EU) and the European Free Trade Association (EFTA).
Furthermore, the data indicates that EV sales not only surged in markets with already high acceptance rates like Denmark and the Netherlands but also saw significant growth in slower-adopting markets such as Italy.
Gurjeet Grewal, CEO of British EV company Octopus, stated that its new car demand in April skyrocketed by 95% year-on-year, while used car demand surged even more, by 160%. "This is not a blip, it's a turning point," he said.
Although sales of pure electric vehicles across Europe also saw a 30% growth rate last year, the pace of adoption did not meet industry expectations, forcing major German automaker Volkswagen and Fiat's parent company Stellantis to recognize billions of dollars in asset impairment charges.
However, after US and Israeli airstrikes on Iran on February 28 this year triggered an unprecedented energy supply disruption, international oil prices soared past $100 per barrel, leading to a major shift in the calculations of prospective car buyers.
Erik Severinson, Chief Commercial Officer at Swedish automaker Volvo Cars, said that their EV orders are on an upward trend, especially for the entry-level small electric SUV, the EX30. Buyers interested in this model are typically "most sensitive to rising fuel prices."
French automaker Renault also said that half of its new cars registered in the UK market in April were electric, and since the outbreak of the Iran War, EV-related queries on its UK website have increased by 48%.
Markus Haupt, CEO of Volkswagen's Seat and Cupra brands, revealed earlier this month that their sales team in Germany reported that the share of EVs in new orders has approached 60%, much higher than the company's original allocation of 25%.
Searches for new and used EVs on European vehicle trading websites have also seen significant growth, with a particularly sharp increase in inquiries for more affordably priced Chinese brands.
German trading platform Carwow noted that after the Iran War began, the proportion of inquiries for EVs on its platform jumped from about 40% to 75%, while traditional cars dropped from 33% to 16%. Among them, inquiries for Chinese EV giant BYD grew by an astonishing 250 times in the first quarter of this year, while two other Chinese EV makers, Leapmotor and Xpeng, also saw surges of 436% and 153%, respectively.
Another European vehicle trading platform, OLX, also stated that since the start of the Iran War, inquiries for EVs on its French website have jumped by 80%.
In the 1970s, a similar situation occurred where consumers opted for more fuel-efficient cars after oil prices soared. However, when oil prices fell and the burden of refueling eased, consumers switched back to less fuel-efficient models. Yet, industry insiders suggest this time may be different.
OLX CEO Christian Gisy pointed out, "The Iran conflict has fundamentally reshaped how people view energy security in their daily lives. The European attitude towards EVs has shifted from 'maybe someday' to 'buy now'."