On the Dash:
- Searches for electrified vehicles jumped to 22.4% of Edmunds traffic, led by full EVs.
- High gas prices and limited affordable EV options may push buyers toward used electric models.
- Supply constraints on budget-friendly EVs could restrict new-vehicle sales growth in key segments.
Consumer interest in electric and hybrid vehicles is rising as global oil markets are disrupted by the conflict in Iran, driving U.S. gas prices to their highest levels in over a month.
Edmunds reported that electrified vehicles, covering full electric cars and all hybrids, accounted for 22.4% of searches during the week of March 2, up from 20.7% the prior week. Most of the increase came from searches for full battery-electric vehicles. The pattern echoes similar consumer behavior observed in early 2022, when oil prices surged after Russia’s invasion of Ukraine, sending EV-related searches from 17.5% to 25.1% within a month.
The spike in fuel costs stems from Iran’s disruptions to oil production and key international shipping channels, creating turmoil in global energy markets. Across the U.S., the national gas average reached $3.58 per gallon, more than 50 cents higher than a month earlier. Japan and South Korea have also taken measures to stabilize prices amid the international impact.
Edmunds warns that high fuel costs coincide with rising new and used vehicle prices, making it difficult for many Americans to trade in older, less efficient cars. While some buyers may take advantage of relatively affordable used EVs—such as the Hyundai Ioniq 6—options for lower-priced new electric vehicles remain limited. Models like the Nissan Leaf and Chevy Bolt are available in some trims, but others, including the Kia EV3 and EV4, have been delayed for the U.S. market.
Analysts say the duration and severity of the conflict will determine whether EV demand continues to rise. Even if oil prices retreat from their peak, continued volatility could sustain consumer interest in electrified vehicles, particularly among those seeking relief from high gasoline costs.
