Due to extremely high gas prices, demand for electric vehicles appears to be higher than ever. Well, except in the United States.
Head of Clean Transport at BloombergNEF, Colin McKerracher, told Inside EVs that “sales are going through the roof,” but likely not in the way the U.S. government would like to see. In March 2026, drivers around the world turned to EVs due to the United States-Iranian conflict, which has explosively increased gas prices. And it doesn’t look to be ending any time soon. However, there is one driving factor in EV sales that American politicians have been fearing all along.
U.S. pushes back against EVs, but doesn’t offer an alternative solution
According to McKerracher, the countries with the most EV sales are those with many Chinese EVs available. Said McKerracher: “In places where that supply is available, primarily from the Chinese automakers, to meet that demand, sales are going through the roof.”
This includes regions such as Southeast Asia and Australia, which have seen a rapid rise in demand for EVs due to affordable options from China flooding the countries. Europe has seen plug-in vehicle sales rise 72% month over month, thanks to rising gas prices and government incentives — and those sales are driven by BYD.
China’s strategy has not been a secret: undercut the competition. And it’s working. Despite some reviews claiming that Chinese EVs are built a bit cheaper and less engaging to drive than other vehicles in the same segment, drivers can’t resist the extremely low prices. And American senators know that, and don’t want that to happen.
Over in the United States, various political leaders and organizations have continued to push back at the idea of Chinese EVs entering the country, even calling it a cancer. The cheap EVs would be appealing to all the families in America that can’t afford a new car, especially not a new EV. American automakers can’t go that low and won’t be able to compete. Ford CEO Jim Farley previously said that it “wouldn’t be a fair fight.”
Without Chinese EVs to compete against, American automakers have continued to release pretty pricey EV options that the average customer can’t afford. Despite higher gas prices, many people are left just dealing with it at the pump rather than buying a $50,000 electric vehicle. While Edmunds has claimed there’s been a rapid increase in searches for EVs, that doesn’t mean Americans are finding what they need or making a purchase. After seeing the prices, most drivers are probably realizing they are stuck paying $75 to fill their tank. Maybe they’ll just take public transit. It’s not like they can buy a Lucid, Porsche, or Mercedes.
With Americans unwilling to buy these EVs, automakers have decided to pivot their U.S. market plans. More gas-powered cars are coming. Many EVs have been canceled, from supercars to family-focused SUVs. Said McKerracher: “I’m a bit concerned for the U.S. market in the sense that we may be at the point where something is really pushing consumer demand, but there isn’t the supply to respond due to canceled models and a general pullback from the automakers.”
Some automakers are still trying to make EVs work, but prices are not low enough to appeal to Americans. Not when they know there are Chinese EVs out there for $10,000 to $20,000 less. I’ve argued that the United States should bring Chinese automakers in if they want to stop being isolated from the rest of the world and create some cheaper vehicles for struggling families. But that would make too much sense.
While the rest of the world pushes onward with an EV agenda, America is not even sure what to do next. President Donald Trump’s tariffs keep changing, and his thoughts on Chinese EVs keep wavering. The United States keeps pushing back against EVs with higher taxes and fewer incentives. It’s hard to make any strategic decisions. It’s hard to justify more EVs.
I’m truly not sure what the U.S.’s game plan is.
