Rising oil prices drive surge in electric vehicle demand

Taylan Özgür Dil- ISTANBUL

The sharp rise in petrol prices is redirecting demand towards electric vehicles, with showrooms of EV brands in Türkiye becoming increasingly busy, mirroring trends seen across Asia and Europe.

By March 2026, a striking divergence has emerged in the automotive industry. Consumers are turning to electric vehicles as a shield against fuel shocks, seeing them not only as environmentally friendly but also as economically protective.

Analysts suggest that even if the war subsides, this shift could prove permanent, with China poised to take a stronger lead in global EV investment as Western manufacturers slow down.

On 28 February, drivers in Türkiye paid 57 Turkish Liras ($1.28) per liter for petrol and 60 liras for diesel, while charging an electric vehicle at a fast-charging station cost around 14 liras per kWh. By 29 March, petrol had climbed to 63 liras per liter and diesel to 75 liras, yet EV charging costs remained unchanged.

This pattern is not unique to Türkiye. The oil shock following U.S and Israeli strikes on Iran has triggered a global shift, particularly in oil-importing Asian countries. Reports show rising demand for electric, hybrid, and plug-in hybrid vehicles. In markets such as China, India, Japan, Australia, and Southeast Asia, fuel efficiency is no longer just a sustainability choice but an economic safeguard.

A 2026 outlook report by global research firm MarketsandMarkets indicates that tensions in Iran could strengthen EV demand even in markets where adoption has been relatively weak. Analysts warn that this behavioral change may persist even if the Strait of Hormuz returns to normal.

Europe is also seeing renewed interest in EVs. German dealership MeinAuto reported a 40 percent increase in online traffic for electric vehicles since the war began.

In Türkiye, while official data is limited, sales activity at Tesla and Togg outlets reflects a clear rise in demand. Sales consultants note that March brought a noticeable increase, supported by incentives such as Togg’s six-month free charging and Tesla’s 12,000-kilometre complimentary charging offer.

Whether this surge becomes permanent depends on policy steps. Sustaining demand in Türkiye will require continued support for EVs, expansion of fast-charging infrastructure, and stronger consumer incentives. Without these, the current momentum may prove short-lived. With the right measures, however, Türkiye could consolidate its position in the EV market.

Yet just as demand rises, Western manufacturers such as Volkswagen, Ford, and Stellantis are slowing EV investments, shifting back towards hybrid and internal combustion models. In contrast, Chinese brands like BYD and Leapmotor continue to expand aggressively. If this trend persists, the balance of power in the automotive sector may increasingly tilt towards China.