Rising gas prices are driving renewed interest in electrified vehicles, according to industry analysts who say uncertainty in the oil market is pushing more buyers to consider alternatives to traditional gasoline-powered cars.
Gas prices have surged since the start of the war in Iran, climbing 96 cents per gallon for regular fuel, according to GasBuddy.
The spike has many drivers rethinking their options at the pump.
“In the past week or two, what we’re seeing is a kind of a notable bump in shopper behavior,” said Joseph Yoon, a consumer insights analyst for Edmunds, an online marketplace for researching, buying and selling new cars.
Yoon said the company is seeing increased interest in “electrified vehicles and that encompasses EVs, hybrids, plugins, anything that’s not all full gasoline right now.”
He noted that the pattern mirrors what happened in 2022, when Russia invaded Ukraine and gas prices also surged.
“People were like oh maybe it’s time to look at an EV and I think right now with gas prices being very unstable at the pump I think a lot of people are doing the same,” Yoon said.
Before the current conflict, Yoon said about 20 percent of car shoppers were exploring alternatives to gas-powered vehicles.
“Last week it was about 23, this week it’s almost 25%. So, it is an ongoing increase,” he said.
Still, Yoon cautioned that it is too early to know whether the shift in interest will translate into higher EV sales.
He also warned that consumers who do not need a new vehicle should avoid rushing into a purchase, especially with higher interest rates.
“If you’re looking to switch vehicles thinking that you’ll save money, ultimately you won’t,” he said.
Yoon said the real financial benefits of owning an EV come over time, with reduced or eliminated fuel costs and lower maintenance expenses due to fewer moving parts.
According to AAA, the national average cost of electricity at public EV charging stations remains unchanged at 41 cents per kilowatt hour.
