As international oil prices surge amid geopolitical tensions surrounding Iran, consumers are rapidly shifting their attention to electric vehicles.
According to the Financial Times on March 31 (local time), EV-related searches and inquiries have risen markedly across Europe following the recent spike in oil prices.
Data from Autotrader, a UK online car trading platform, showed that ad views for new vehicles from Chinese EV maker BYD rose 77% year-on-year, while used car searches surged more than 370%.
France's Renault also reported that inquiries about its EVs increased approximately 24% after Feb. 28, when U.S. and Israeli strikes on Iran began. Kia saw a rise in test-drive requests ahead of the launch of its compact electric SUV, the EV2.
Polestar's UK division, the Swedish EV brand, observed a similar trend. The head of its local unit said, "Fuel costs are now weighing more heavily than range anxiety," conveying a shift in consumer sentiment.
Some EV companies are actively leveraging this psychology in their marketing. BYD recently released an ad in Europe with the message "Fuel costs change, your plans don't," emphasizing its cost-saving image.
However, whether the increase in EV demand will be sustained over the long term remains uncertain. Interest in EVs has historically surged during periods of rising oil prices, only to cool quickly once prices stabilize.
Meanwhile, global automakers are also recalibrating their strategies. Ford, Honda and Stellantis have recently scaled back or reviewed some of their EV launch plans, signaling strategic adjustments.
BYD Pivots to Global Markets Amid Domestic Struggles
BYD is accelerating its push into overseas markets amid sluggish domestic demand. According to Bloomberg, BYD has raised its export target for this year from 1.3 million to 1.5 million units.
BYD's net profit last year came in at 32.6 billion yuan (approximately 7.1 trillion won, or about $5.2 billion), down 19% year-on-year and below market expectations. Sales were also weak in early 2025, with EV sales falling 35% and hybrid sales dropping 36.7% in January and February.
During the same period, Geely Automobile maintained its position as the top seller in China, signaling a potential reshuffling of the competitive landscape.
Against this backdrop, BYD is pursuing overseas markets as a breakthrough. Exports last year exceeded 1.04 million units, surging approximately 140% year-on-year.
Industry analysts say the Chinese government's intensifying crackdown on "neiquan" — destructive price wars — is accelerating companies' expansion abroad. Chinese authorities have stepped up enforcement to curb excessive competition in key industries including EVs and batteries.
Citigroup raised the possibility that BYD's domestic auto business could swing to a loss in the first quarter of this year, projecting that future earnings will depend heavily on overseas markets.
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