Energy crisis drives surge in electric vehicles and solar demand worldwide

Friday 24 April 2026 - 09:00

By: Dakir Madiha

Energy crisis drives surge in electric vehicles and solar demand worldwide

A global energy shock triggered by the conflict between Iran and the United States has pushed demand for electric vehicles and solar power to record levels. The near closure of the Strait of Hormuz disrupted oil flows and drove sharp price increases, prompting households and businesses to shift away from fossil fuels.

Electric vehicle adoption has accelerated across major markets. In Europe, battery electric vehicle registrations rose 51 percent year on year in March 2026 across key markets, reaching more than 242,000 units. Germany led with over 70,000 registrations, while France, Spain, Italy, and Poland all recorded growth above 40 percent since the start of the year. Electric vehicles accounted for 19.4 percent of the European market in the first quarter, up from 15.2 percent a year earlier, while the combined share of gasoline and diesel vehicles fell sharply.

In Australia, new electric vehicle deliveries surged 88.9 percent in March, reaching 15,839 units and capturing a record 14.6 percent market share. The increase came despite a broader decline in total vehicle sales, highlighting the impact of fuel price volatility. The second-hand electric vehicle market also expanded rapidly, with sales more than doubling month on month as available inventory dropped significantly.

Southeast Asia has seen similar momentum. At the Bangkok International Motor Show, BYD surpassed Toyota in total orders for the first time, securing more than 17,000 bookings during the event. Chinese electric vehicle manufacturers dominated the rankings, reflecting growing regional demand and competitive pricing.

Solar energy demand has also risen sharply, particularly in Europe. Orders for rooftop solar installations have more than doubled in some markets, including Germany, United Kingdom, and Netherlands. The Dutch energy provider Eneco reported a 30 percent increase in orders in March, with further growth expected. Demand for home energy storage systems has climbed between 40 and 50 percent, signaling a broader shift toward energy independence following a slowdown in installations during 2025.

The wider energy disruption has reshaped global supply chains. The International Energy Agency described the situation as one of the most severe supply shocks in oil market history. Around 20 percent of global oil flows through the Strait of Hormuz, and volumes dropped sharply during the conflict. Oil prices rose by more than 50 percent between late February and their peak. Even after a ceasefire announcement on April 8, shipping traffic remained below normal levels. Imports through the route fell dramatically in China and India, accelerating the global shift toward alternative energy sources.