Western automakers are chasing a defence spending boom as a way to sell more vehicles and make use of underemployed factories, though executives say military work will not make up for slowing car sales and growing Chinese competition.

A surge in diesel prices linked to this year's Iran conflict has helped make electric trucks cheaper to own and operate than diesel models in six ‌major European Union markets, which account for almost half of the bloc's new truck sales, according to an analysis by Brussels-based environmental advocacy group Transport & Environment.