The war in Iran has so far not led to a significant increase in sales of electric vehicles in the United States, despite signs that consumers are trying to avoid soaring fuel prices.
However, the conflict is contributing to an increase in sales of electric vehicles in much of the world and is beginning to hurt sales of fossil fuel cars.
These are some of the biggest takeaways from April’s auto sales data. Sales of electric vehicles are growing in Europe, Asia and Latin America, but have fallen in China and the United States.
Almost everywhere, however, fuel prices affect sales of gasoline or diesel vehicles. The war has shaken consumer confidence and caused many people to shy away from big purchases, economists say.
Even before Iran closed the Strait of Hormuz, choking off a significant share of the world’s oil supply, car prices had soared to levels few Americans could afford. The average price of a new car is more than $50,000. Higher fuel prices create an additional burden on household budgets.
“Affordability has been the biggest headwind so far,” said Kevin Roberts, director of economics and market intelligence at online shopping site CarGurus.
The number of cars sold in the United States in April fell 7 percent from a year earlier to 1.4 million, according to Cox Automotive. In April 2025, many people rushed to buy cars before President Trump’s tariffs on imported vehicles and parts went into effect.
According to Cox, sales of new electric vehicles fell 23 percent from the previous year. This came even as CarGurus and similar websites reported an increase in searches for electric vehicles.
However, sales of electric cars rose compared to January and February, before petrol and diesel prices started to rise. And sales of used electric vehicles jumped 17 percent, a sign that many buyers prefer the technology when they can afford it.
Used electric vehicles cost about the same as comparable fuel vehicles. New electric vehicles cost nearly $6,000 more on average.
There are signs that the price of regular gasoline, which has risen 50 percent since the start of the war to $4.51 a gallon on Wednesday, is leading to increased demand for certain electric models.
“We’re starting to see some interest coming in,” said Luis Rezende, president of Volvo Car Americas, in a statement. “Our European colleagues are already seeing increased demand for fully electric models.”
Sales of General Motors’ Equinox EV in March and April were the highest since October, the company said. Congress eliminated a tax credit of up to $7,500 for electric vehicles in October, causing sales to plummet.
In Europe, where gasoline can cost nearly twice as much as in the United States, sales of electric vehicles have surged, rising 27 percent in April from a year earlier, according to Benchmark Mineral Intelligence.
According to the European Automobile Manufacturers Association, one in five new vehicles is battery-powered only. Sales of pure electric vehicles and hybrids, which have internal combustion engines but can drive short distances on batteries, eclipsed sales of cars that run entirely on gasoline.
Sales of electric vehicles and hybrids in China, the world’s biggest car market, fell 8 percent in April after the government cut incentives to buy them, according to research firm Benchmark Mineral Intelligence. The weak economy also played a role. But according to the China Automobile Association, sales of gasoline vehicles have fallen much more.
China’s electric vehicle exports surged last month on demand from Europe, Latin America, Africa and Asian countries such as Thailand and the Philippines. Countries including Costa Rica, Uruguay and Ethiopia have promoted electric vehicles to reduce their dependence on imported oil.
BYD, Geely, Chery and other Chinese manufacturers sell some electric models for less than $20,000. The spread of electric cars available in this way is another reason for the boom in sales.
“China’s exports are at record highs, and many are finding their way to smaller countries,” said Charles Lester, data manager at Benchmark.
Sales of electric vehicles in what analysts refer to as the “rest of the world” — a category that excludes China, Europe and North America — more than doubled in April from a year earlier, according to Benchmark. Global sales of electric cars rose 6 percent despite declines in the United States and China.
Gas prices are not the only consideration when people choose a new car. Buyers also take into account how long they think the car will hold its value and, if they’re considering an EV, whether they can easily charge it.
“Higher pump prices will drive adoption, but not the divide some suggest,” analysts at HSBC said in a note this week on electric vehicles.
But if fuel prices continue to rise, the argument for electric cars will grow stronger. Electricity is almost always cheaper per mile than gasoline, and electric vehicles generally require less maintenance.
“We need gas prices to get above $5 to influence consumer purchases more,” said Mr. Roberts of CarGurus.
