Buyers in UAE, UK shifting to electronic vehicles amid rising oil prices due to Iran war

The Iran war and obstruction caused to the Strait of Hormuz, which links the Gulf to the Gulf of Oman has led to world economy taking a hit. Passage of vessels carrying oil has been a major problem with the Strait being obstructed by Iran. This has led to oil prices soar across the globe. The cost of transport has risen due to oil prices, also owners of private vehicles are finding it difficult to keep up with the rising fuel costs.

This, however, seems to benefit one, and that is electric car manufacturers, particularly Chinese EV makers. Yes, you heard that right. If reports are to be believed, the popularity of Chinese electric vehicles in the United Arab Emirates (UAE), has soared. Consumers in Dubai are fast turning away from traditional fuel-powered cars.

A two-week ceasefire announced between Iran and US has for the time being eased the world economy, but analysts say that prices are unlikely to return to pre-conflict levels anytime soon due to the uncertainty surrounding the truce.

Dealers in Dubai have reported inquiries about Chinese EVs that according to reports have risen more than 30 percent in the past month.

EV sales in United Kingdom

Notably, United Kingdom has also seen a rise in demand for electronic vehicles. According to a report in Microsoft News, Some 86,120 new EVs entered Britain's roads in March - the most in a single month, the Society of Motor Manufacturers and Traders (SMMT) said on March 7.

However, EVs still only account for 22.6 per cent of registrations, which is much behind the Government's mandated target of 28 per cent for the year.

The Chinese EV car maker BYD sold the most number of cars (15,162) in UK leaving behind Peugeot, Hyundai, Skoda, Land Rover, Volvo. In fact it did better sales that its EV rival Tesla in the country.