Global EV demand rises for second month as US-Iran war drives fuel concerns

The global demand for electric vehicles increased for a second straight month in April 2026 as high petrol prices kept steering passenger vehicle buyers away from internal combustion engine-powered cars, revealed data published by Benchmark Mineral Intelligence (BMI). According to the consultancy firm, registrations of new battery-electric vehicles and plug-in hybrid electric vehicles grew by 6% from a year earlier to 1.6 million in April this year. However, the data also revealed that sales declined in April by 9% as compared to what was registered in March 2026.

What’s propelling EV demand globally?

Demands for electric vehicles are being propelled by multiple reasons. The rising petrol price amid the Middle-East conflict is a key factor that has been driving the sales of electric vehicles. Further, the policy incentives by the governments across the world are also propelling the growth. Also, another key factor driving the growth of electric vehicles is the rapid surge of Chinese brands in the segment.

The governments around the world kept measures in place to limit fuel prices to mitigate the impact of the Middle East conflict that disrupted the fuel supply chain for the entire world. In Europe, registrations of electric vehicles surged by 27% to about 400,000 units in April 2026, while countries in the European Economic Area and Switzerland have committed nearly $235 billion to their EV ecosystem.

In China, on the other hand, April 2026 registrations for electric vehicles dropped by 8% from a year earlier to roughly 850,000 vehicles after support for auto trade-ins was withdrawn and a tax break on electric vehicle purchases expired. Interestingly, despite the slump of EVs in the Chinese domestic market, the Chinese OEMs expanded abroad, with exports topping 400,000 electric vehicles in April alone and total vehicle exports reaching nearly 1.4 million units between January and April 2026, more than double a year earlier.

Among other regions, in the US, EV registrations dropped by 28% to 120,000 units in April after the end of a US tax credit scheme and proposals by President Donald Trump’s administration to further ease carbon dioxide emissions rules. In Mexico, EV sales were up by nearly 50%, while Canada registered a 7% decline.

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