The war in Iran has not yet led to a significant increase in electric vehicle sales in the United States, despite signs that consumers are trying to avoid soaring fuel prices.
But the conflict is contributing to a surge in electric vehicle sales in much of the world and is beginning to hurt sales of cars that run on fossil fuels.
Those are some of the biggest takeaways from data on car sales in April. Electric vehicles sales are booming in Europe, Asia and Latin America, but they declined in China and the United States.
Almost everywhere, though, fuel prices are weighing on sales of vehicles powered by gasoline or diesel. The war has shaken consumer confidence and caused many people to avoid big purchases, economists say.
Even before Iran closed the Strait of Hormuz, choking a significant share of the world’s oil supply, car prices had climbed to levels few Americans can afford. The average price of a new car is more than $50,000. Higher fuel prices create a further drain on household budgets.
“Affordability has been the bigger headwind so far,” said Kevin Roberts, director of economic and market intelligence at CarGurus, an online shopping site.
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 were rushing to buy cars before President Trump’s tariffs on imported vehicles and parts took effect.
Sales of new electric vehicles plunged 23 percent from a year earlier, according to Cox. That occurred even though CarGurus and similar websites have reported an uptick in searches for electric vehicles.
But electric vehicle sales rose compared with January and February, before gasoline and diesel prices began to climb. 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 vehicles that run on fuel. New electric vehicles cost nearly $6,000 more on average.
There are tentative signs that the price of regular gasoline, which has risen about 50 percent since the war began to $4.50 a gallon on Wednesday, is leading to increased demand for certain electric models.
Sales of General Motors’ Equinox E.V. in March and April were the highest they had been since October, the company said. Congress eliminated a tax credit of up to $7,500 for electric vehicles in October, causing sales to plunge.
In Europe, where gasoline can cost almost twice as much as in the United States, sales of electric vehicles have surged, rising 27 percent in April compared with a year earlier, according to Benchmark Mineral Intelligence.
One in five new vehicles is driven by battery power alone, according to the European Automobile Manufacturers’ Association. Sales of pure electric vehicles and hybrids, which have combustion engines but can travel short distances on battery power, have eclipsed sales of cars that run solely on gasoline.
Sales of electric vehicles and hybrids in China, the world’s largest car market, slumped 8 percent in April after the government pared incentives for their purchase, according to Benchmark Mineral Intelligence, a research firm. A weak economy also played a role. But sales of gasoline vehicles plunged much more, according to the China Passenger Car Association.
Exports of Chinese electric vehicles surged last month because of demand from Europe, Latin America, Africa and Asian countries like 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 proliferation of such affordable electric vehicles is another reason for booming sales.
“Chinese exports are at record highs, and a lot of them are finding their way into smaller countries,” said Charles Lester, data manager at Benchmark.
Sales of electric vehicles in what analysts refer to a “rest of world” — a category that excludes China, Europe and North America — more than doubled in April from a year earlier, according to Benchmark. Globally, E.V. sales rose 6 percent despite the declines in the United States and China.
Gasoline prices are not the only consideration when people are choosing a new car. Buyers also take into account how much they think a car will hold its value and, if they are considering an electric vehicle, whether they can charge it easily.
“Higher pump prices will be supportive for adoption, but not the watershed that some suggest,” analysts at HSBC said in a report this week on electric vehicles.
But if fuel prices continue to rise, the argument for electric vehicles will become stronger. Electricity is almost always cheaper per mile than gasoline, and electric vehicles generally require less maintenance.
“We need to see gas prices get above $5 to impact consumer purchases more,” Mr. Roberts of CarGurus said.
