Iran War and Rising Fuel Prices Drive Surge in European EV Sales, Reuters Reports

Rising fuel costs linked to conflict in Iran and the Strait of Hormuz closure are driving renewed consumer interest in electric vehicles across European markets.

20 May 2026 | 1220 Views | By Autocar Professional Bureau

As conflict in Iran and the closure of the Strait of Hormuz continue to push fuel prices higher worldwide, demand for both new and used electric vehicles across Europe is climbing, according to data shared with Reuters.

New EV registrations rose 34% year-on-year in April across 16 markets representing over 80% of European car sales. Growth was strong in established EV markets such as Denmark and the Netherlands, while Italy, historically slow to adopt electric vehicles, also showed renewed interest.

The uptick comes despite a challenging backdrop for automakers. Although EV sales grew 30% in 2025, European demand had lagged behind projections, prompting several manufacturers to record asset writedowns on their EV investments. Producers including Renault and Volkswagen's Seat/Cupra are now reportedly ramping up output in response to the shifting market conditions.

Online marketplaces have also recorded a rise in EV searches, with notable interest in affordable models from Chinese brands, Reuters reported.

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