Despite the continual rise in gas prices across the United States, electric vehicle (EV) sales saw a decline in April, contrasting with the robust growth observed in regions like Europe. However, American drivers are increasingly turning towards hybrids, which offer a more efficient powertrain.
According to recent data from Edmunds, an auto research firm, new EV sales dropped by approximately 18 percent from March to April. Cox Automotive reported a smaller decline, around 6 percent. Experts suggest that high gas prices have not significantly swayed American consumers toward EVs.
Ivan Drury, director of insights at Edmunds, noted a high interest in electrified vehicles on their platform, stating, “There was a lot of window shopping.” However, this interest did not convert into actual purchases.
Drury pointed out that price remains the main obstacle for many consumers. Although EVs may offer lower operational costs long-term, especially with high gas prices, the initial purchase price is still considerably higher. In April, the average transaction price for an EV was $6,214 more than that of a vehicle with an internal combustion engine, according to Cox.
Stephanie Brinley, a principal automotive analyst at S&P Global Mobility, emphasized the cost challenge, saying, “It’s still a cost hurdle. You don’t know how long it’s going to take to get that back.”
With an average gas price of $4.56 per gallon, an EV owner would need to drive over 40,000 miles to offset the price difference with a car that achieves 30 mpg. While savings on maintenance could shorten this period, higher insurance costs and the need for a home charger might extend it. A drop in fuel prices would further reduce the appeal of an EV.
Drury highlighted the complexity of the financial decision, stating, “It’s very difficult for people to wrap their head around, ‘Hey, if I spend this $55,000, I might over time save’. It requires a bit more math than most people want to go through.”
Hybrid vehicles present a more straightforward choice, using batteries to enhance fuel efficiency by 25 to 45 percent without requiring a plug-in. For instance, the Honda CR-V gets approximately 29 mpg, while its hybrid version achieves 37 mpg. Many popular models, like Toyota’s, are now hybrid-only. Last year, Toyota stopped producing a gas-only Camry sedan, and the 2026 RAV4 followed this trend. Edmunds data indicates hybrid sales have increased 20 percent year-over-year and nearly 50 percent since February, coinciding with the onset of the U.S.-Iran conflict. Gas-powered vehicle sales rose about 11 percent in the same timeframe.
Stephanie Valdez Streaty, director of industry insights at Cox Automotive, remarked, “I think this is going to be a hybrid moment. There are a lot of options.”
Used EVs have shown some promise, with a 3 percent increase in sales from March to April and a price premium of just $1,096 over used internal combustion vehicles. They also sold more quickly than their gas-powered counterparts. Valdez Streaty noted, “They’re really selling efficiently,” and projected a surplus of EVs as leases expire, suggesting inventory won’t be an issue.
With Iran maintaining control of the Strait of Hormuz and the summer travel season approaching, gas prices are expected to rise, potentially making EVs more attractive. Globally, EV sales have surged since the conflict began, with Europe experiencing significant growth and China setting an export record in April, according to BloombergNEF.
In the United States, however, only consumers already inclined towards EVs seem to be making the switch. Brinley described them as “Edge-case people,” influenced by high gas prices because they were already considering the switch. She noted, “But what we’re unlikely to see is a shift in current [internal combustion car] owners just fundamentally making that change simply because of gas prices.”
