Global EV Demand Rises for Second Month Amid US-Iran War Fuel Crisis

Global demand for electric vehicles (EVs) continued to rise for the second consecutive month in April 2026, driven largely by concerns over rising fuel prices amid the ongoing US-Iran conflict and continued government support for cleaner mobility solutions. According to data released by Benchmark Mineral Intelligence (BMI), registrations of new battery-electric vehicles and plug-in hybrid electric vehicles increased by 6 per cent year-on-year to reach 1.6 million units in April. However, monthly sales declined by 9 per cent compared to March 2026, indicating some moderation in market momentum despite sustained annual growth.

Industry analysts said multiple factors are contributing to the continued shift toward electric mobility globally. Rising petrol and diesel prices linked to instability in West Asia have encouraged consumers to consider alternatives to conventional internal combustion engine vehicles. Governments across major economies have also continued introducing incentives, subsidies, and policy measures aimed at expanding EV adoption and reducing dependence on fossil fuels. In addition, automakers have significantly increased the range and affordability of EV models, giving consumers more choices across different price segments.

Europe remained one of the strongest growth markets for electric vehicles in April, with EV registrations rising by 27 per cent to around 400,000 units. Countries within the European Economic Area and Switzerland have collectively committed nearly $235 billion toward strengthening their EV ecosystem, including charging infrastructure, battery production, and manufacturing support. Meanwhile, China saw an 8 per cent decline in EV registrations to approximately 850,000 vehicles after the withdrawal of trade-in support schemes and the expiry of tax incentives on EV purchases. Despite the slowdown in domestic demand, Chinese manufacturers continued aggressive international expansion, exporting more than 400,000 electric vehicles in April alone.

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In the United States, EV registrations dropped sharply by 28 per cent to around 120,000 units following the end of a federal tax credit programme and proposed regulatory changes aimed at easing carbon dioxide emission norms under President Donald Trump’s administration. Other markets showed mixed trends, with Mexico recording nearly 50 per cent growth in EV sales while Canada witnessed a 7 per cent decline. Analysts believe the global EV market will continue to remain closely tied to fuel price movements, government policy direction, and geopolitical developments affecting global energy supply chains.

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