High Gas Prices Drive Surge in U.S. EV Searches

Global oil markets have been rattled by tensions in Iran, pushing the average U.S. gasoline price to $3.58 per gallon—up more than 50 cents from a month ago. According to data from automotive platform Edmunds, consumer interest in electric and hybrid vehicles has surged significantly: by the end of February, searches for these models accounted for 20.7% of total vehicle inquiries, rising further to 22.4% by the second week of March, with battery-electric vehicles driving most of this growth. This trend mirrors patterns seen during the initial phase of the Russia-Ukraine conflict in 2022. However, the current market faces new challenges: affordable new vehicles are scarce, while average vehicle prices and loan amounts continue to climb, making it difficult for many owners to trade in their older cars. Despite this, the used EV market remains attractive, with models like the Hyundai Ioniq 6 offering solid options, and most pre-owned EVs still priced relatively low. Consumer choices are nonetheless limited, as automakers have delayed or canceled plans to launch several affordable new EVs in the U.S.—including the Kia EV3/EV4 and a lower-priced version of the Nissan Leaf. If high fuel prices persist, demand for both new and used electric vehicles is expected to rise further.