Interest in electric vehicles is rising again as gas prices surge in the wake of the Iran war.
On the 31st (local time), the Financial Times (FT) reported that "rising fuel prices and 'refueling anxiety' stemming from the Middle East conflict have sharply increased consumer interest in electric vehicles, leading to more test drives, ad viewing and used-car sales."
According to the online auto transaction platform Auto Trader, in the United Kingdom, views of new-car ads for Chinese EV maker BYD rose 77% from a year earlier, and searches for used BYD vehicles jumped more than 370%. On the website of French automaker Renault, inquiries about electric vehicles also increased 24% after Feb. 28, when the United States and Israel began attacks on Iran.
For Korea's automaker Kia, test-drive requests for the small electric SUV "EV2," set to launch, rose 84%. Matt Galvin, head of the U.K. unit of Swedish EV brand Polestar, said inquiries and test drives for its vehicles have increased, noting, "Now we're starting to see 'refueling anxiety' instead of 'range anxiety.'"
This is creating an opportunity for electric-vehicle companies that have struggled recently amid subsidy cuts across countries and intensifying competition. BYD said on the 28th that net profit fell for the first time in four years, but its share price rose 17.5% on investor expectations for a boost to the clean energy market after the Iran war.
Some companies are rolling out ads that actively target consumers' concern over fuel costs. BYD's European unit released a 30-second ad on social media (SNS) this week with the message, "Fuel costs change, but your plans don't. Save on expense with BYD."
Some analysis says the increased interest in EVs reflects not only higher gas prices but also a wider range of models and improved battery range. Gurjit Grewal, CEO of Octopus Electric Vehicles, which provides EV leasing and financial services, said, "The fact that used EV sales have quadrupled from just six months ago is an indicator that real demand exists."
The key question is whether this interest will last. Interest in EVs typically rises during periods of higher oil prices but tends to drop quickly when the market stabilizes, FT noted. Moreover, major automakers including Ford, Honda and Stellantis have already canceled EV launch plans or revised their transition strategies.