The first signs of a shift toward electric vehicles have emerged in car rental companies in the US; customers have started to worry about rising gasoline prices due to the conflict in the Middle East.
At Hertz, which rents vehicles for longer terms to Uber and Lyft drivers than traditional rentals, electric vehicle booking requests in March increased by approximately 25% compared to February. According to Doria Holbrook, vise president of Hertz’s mobility division, the biggest increase in demand for electric vehicle rentals occurred on the West Coast, where gas prices are the highest.
In Turo, a peer-to-peer car rental service similar to Airbnb, electric vehicle bookings in the last three weeks of March increased by 11% compared to the previous three-week period. On March 31, the day when gasoline prices in the U.S. surpassed $4 per gallon for the first time since 2022, electric vehicle bookings on Turo were 47% higher than the same day in 2025, the company stated.
The Iran war has caused disruptions in the Strait of Hormuz, a key transit point for about 20% of the world’s oil and liquefied natural gas. According to the U.S. Energy Information Administration, average gasoline prices in the U.S. have risen by a third since the war began on February 28, reaching $4.02 per gallon.
STRAIT OF HORMUZ DISRUPTIONS BITE
Analysts and dealers say that rising fuel prices generally do not cause sudden changes in car buying decisions. However, the severity of this price shock has already led many consumers to seek alternatives. For example, in 15 countries in Europe, electric vehicle registrations increased by more than 50% in March.
The impact in the U.S. was less. According to Cox Automotive, the $7,500 tax credit that ended last fall continues to reduce Americans’ appetite for electric vehicles, with new electric vehicle sales dropping by 25% in March compared to the previous year. However, used electric vehicle sales have increased significantly, and renters appear more willing to switch for short-term fuel savings.
The digital rental platform Car Rental Gateway reported a 16% increase in electric and hybrid vehicle bookings in March. Hannes Põldvee, a board member of Car Rental Gateway, said that rental companies that have made significant investments in electric vehicles could benefit from this if gasoline prices remain high.
PRICES REBOUND IN USED EV MARKET
The price of secondhand electric vehicles has also increased due to the increased demand for EVs. According to John Coles, vice president of data science and analytics at ACV Auctions, an online marketplace where dealers and rental companies can purchase and sell used cars, EV prices had been falling for months but had stabilized following the spike in oil prices that began in early March.
“We have seen EVs get a second lease on life due to the sustained pressure at the pump,” he stated.
