It is hard to think of any benefits to war, especially a conflict involving the United States, Israel and Iran. But in the automotive sector at least, some appear to be gaining: electric vehicle makers.
Renault CEO François Provost told Reuters the company is currently facing demand for electric cars that exceeds its production capacity. This comes amid a surge in gasoline prices in Europe driven by higher oil prices.
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Renault CEO François Provost said that the company is currently facing demand for electric cars
“We are currently beyond our parts supply capacity due to the war in Iran,” Provost said when asked about rising demand for electric vehicles.
According to Renault, sales of its new electric models, led by the Twingo, R5 and R4, have risen by 50% in some key European markets including France and Germany since the start of the Iran war.
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Provost said Renault does not currently face a shortage of batteries but is still struggling to meet strong demand
Provost said Renault does not currently face a shortage of batteries but is still struggling to meet strong demand. The company has set up a special task force to find ways to speed up component deliveries and expand production capacity. Renault is also considering adding production shifts in the second half of the year at its Douai and Maubeuge plants in France and Novo Mesto in Slovenia, where its electric models are produced.
After a prolonged decline driven by the removal of incentives and rising popularity of plug-in hybrids, electric car sales in Europe have surged this year. Demand is strongly felt in new car showrooms, with a 29% jump in the first four months of 2026 to nearly one million units.
Used car dealers are also reporting a noticeable increase in demand for electric vehicles after years of steep depreciation and customer concerns led to large inventories of older electric cars. A sharp rise in gasoline prices, up tens of percent, has also convinced bargain hunters that it is time to abandon fossil fuels.
Provost said the end of the war with Iran is expected to bring a return to gasoline use, but not to pre-war levels. Renault believes the current mass shift to electric vehicles will accelerate the broader transition to clean energy, based on the assumption that customers who make the switch tend to stay with electric cars for their next purchase rather than returning to gasoline or diesel.