Brent crude hit $112 a barrel on March 23, a jump of roughly 60 percent since the Iran war began on February 28. Petrol prices here have not moved yet. But the fear that they will is already changing behaviour on the ground. Automakers and dealers across the country have reported a clear and measurable uptick in EV inquiries over the past two to three weeks, coinciding almost exactly with the escalation in global energy prices.
The numbers back this up. In the first three weeks of March alone, electric passenger vehicle registrations reached 10,370 units. For context, the total EV passenger vehicle volume for the entire month of March 2025 was 12,356 units. That means the segment is on track to comfortably beat last year's March figure, with a week still to go. This kind of momentum, mid-month and without a price cut or a major new launch driving it, points directly to the fear of a fuel hike as a trigger.
At the moment, regular petrol and CNG prices remain unchanged despite the global spike. The government has limited price increases to premium petrol and industrial diesel. But 85 countries have already raised pump prices since the crisis began in late February. Markets including the US, Japan, China, Germany, France, the UK, and Australia have all adjusted their fuel prices upward. The longer global crude stays elevated, the harder it becomes to justify a domestic price freeze without absorbing significant fiscal pressure.
For buyers who have been sitting on the fence between a petrol model and an EV, this uncertainty is enough to tip the decision. Petrol at Rs 100 per litre is already at a point where running costs are noticeable. A 10 to 15 percent hike from here would make that calculation considerably more painful on a daily basis.
EVs currently cost 70 to 75 percent more upfront than a comparable petrol vehicle. That is a significant barrier. But their per-kilometre running cost is up to 80 percent lower than petrol equivalents. For a buyer who clocks 1,500 km or more per month, the monthly savings on fuel can run into several thousand rupees, and the break-even point on the higher purchase price arrives sooner than most buyers expect.
That math is well known in EV circles, but it tends to sit quietly in the background when petrol prices are stable. A sharp external shock like the current crude spike drags the calculation back into plain view and makes buyers reconsider their assumptions about long term ownership costs.
Tata Motors, which sells the widest range of electric passenger vehicles in the market, has confirmed increased dealer footfall and higher inquiry volumes over the past week. The company has attributed the trend to a mix of lower running costs, the convenience of home charging, and a growing awareness around fuel cost uncertainty.
Several brands are actively capitalising on the current sentiment. VinFast has launched a limited period programme called Trade Gas for Electric, offering exchange bonuses and additional discounts of up to Rs 2.14 lakh on its VF7 model, along with buyback assurances and free charging for early buyers. BYD has noted that demand is also being supported by year-end depreciation advantages as FY26 closes out, with buyers looking to book EVs before March 31 to capture full-year tax benefits.
The broader point is that external events are doing what years of government subsidy schemes and manufacturer incentives struggled to achieve on their own: making a large number of buyers genuinely reconsider petrol as a long-term choice. Whether crude prices stay elevated or ease off in the coming weeks will determine how many of those inquiries convert into actual purchases, but the direction of the trend is hard to miss.