The US electric vehicle market has had a rough stretch. Federal EV tax credits disappeared, supportive policies were rolled back, and overall EV sales dropped by around 27 percent year-over-year in the first quarter of 2026, according to Cox Automotive estimates. Then the conflict with Iran hit, and geopolitical tensions pushed oil prices higher. That single shift in what people pay at the pump appears to be influencing buyer behavior—at least in the short term. Hyundai Motor Company CEO José Muñoz told Bloomberg that the company’s US EV sales grew by 40 percent between February and March, and he pointed squarely at rising fuel costs as the reason.
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Hyundai’s Numbers Tell the Story
The jump comes off a relatively soft February, highlighting how quickly demand can swing with fuel prices. The Ioniq 5 crossover alone sold 4,425 units in March, up 27 percent from the month before, making it the second best-selling EV behind Tesla models in the country for the first quarter. The larger Ioniq 9 did even better, jumping from 505 to 905 units in the same period. These are meaningful numbers for a brand that has one foot firmly in the EV market while several competitors have retreated.
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What Comes Next for the EV Market
Muñoz acknowledged that the industry’s earlier optimism, the idea that EVs could hit 50-60 percent US market share by the end of the decade, no longer looks realistic. He expects something closer to 10 to 15 percent market share, which he described as enough to stay committed to the technology. Car-buying platforms like Edmunds have noticed increased interest in electric options since the Iran war began, and a recent survey found nearly a third of Americans say they would seriously consider an EV for their next vehicle.
The used EV market is also seeing a lift, and the timing is almost accidental. Years of aggressive EV leasing and a wave of early adopters trading up have pushed a large supply of used electric cars into dealerships at exactly the right moment. It brings accessible price points to buyers eager to switch, but who were previously priced out of the new car market. For an industry searching for its next catalyst, the answer may be as simple and volatile as the price of fuel.