EV boom regains momentum as gas prices rise

With gas prices rising, consumers are re-evaluating electric vehicles; it is still an impulse, not a buying panic.

The moment for the electric vehicle market is gaining momentum again, driven by a rise in gas prices caused by tensions in the Middle East affecting global oil supply via the Strait of Hormuz. Even with the unstable situation, experts highlight that what we are seeing now is more of a perception shift than a buying boom.

What is happening

Edmunds pointed out that consideration for electrified models reached 23.8% of vehicle search activity in the second week of March, the highest mark of the year, up from 22.4% the previous week and 20.7% two weeks ago. According to the analyst, when the price of gasoline increases, people start comparing options.

It is important to remember that changes in public policy have reduced the priority of electrification, including the end of the tax credit of up to US$ 7,500 for EVs.

Despite signs of renewed interest, this has not yet translated into more sales. For some experts, this is the time for manufacturers, especially companies operating exclusively with EVs, to promote electrified models and position themselves in front of motivated buyers before the impulse passes.

Global view and opportunities

In the international scenario, BYD — the world's largest EV manufacturer — has observed stronger demand in Asia and is launching promotions for free charging and ultra-fast charging technology. VinFast, the Vietnamese manufacturer, also reports increased sales in its dealership networks.

In the used car market, liquidity tends to grow: in England, a used EV dealer said they had the busiest Saturday in their history. And almost half of consumers in Germany stated that higher fuel prices would influence the decision to consider an EV or hybrid.

What this means for the US

Experts say that those who want to avoid fuel price volatility can look to the used market, where a large flow of off-lease vehicles is about to enter inventory, providing cost-effective options for buyers. On the other hand, the broader picture suggests that the US may lag behind in electrification if it fails to capitalize on the crisis — a parallel with the 1970s and 1980s when the energy crisis helped the Japanese gain ground by offering affordable and efficient models, cementing the Camry in American garages.

What is your view? Have you considered an EV because of the price of gas? Share in the comments and tell us if this current crisis changes your buying radar.