The market for electric vehicles in Asia is expanding rapidly, with firms like BYD and VinFast experiencing rapid expansion as consumers are drawn to EVs due to increased gasoline prices brought on by the Iran oil crisis.
In just the last two weeks, Matthew Dominique Poh, who works at a BYD Co. auto dealership in Manila’s financial sector, reported seeing a month’s worth of orders for the Chinese company’s electric vehicles.Because of the increases in oil prices, customers are switching to electric vehicles (EVs), according to Poh, a salesperson at the dealership for the previous seven months.
Nguyen Hoang Tu Anh, who lives about 1,100 miles (1,770 km) away in Hanoi, claimed that his VinFast showrooms had to hire extra salespeople as client visits quadrupled, leading to the sale of 250 EVs in the three weeks after the start of the Iran conflict. That amounts to almost 80 per week, which is twice the average rate in 2025.
Lai The Manh Linh, a 41-year-old employee of a telecom company, stated, “Switching to EV will help us significantly save money.” He replaced his gas-powered Toyota Vios subcompact car with a new, all-electric VinFast 5 small crossover for his daily journey of 60–70 kilometers to work.
Early indications suggest that Asian EV manufacturers like China’s BYD and Vietnam’s VinFast are profiting from the subsequent spike in crude oil prices, even though automakers have not yet released their sales numbers for March, the first full month since the Persian Gulf crisis started.
In the Pacific region, where roughly 80% of the crude that passed through the Strait of Hormuz usually ended up before that route was essentially shut down by the fighting, the strain from rising pump costs is especially severe.
“Higher oil prices always help the transition to electric vehicles,” Asian Development Bank head economist Albert Park stated. “It creates economic incentives to accelerate the green transition.”
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According to a modelled scenario from BloombergNEF, the global adoption of EVs prevented the consumption of the equivalent of 2.3 million barrels of oil per day last year.
Growing Adoption in Asia
However, according to Bloomberg Intelligence analyst Joanna Chen, the industry will need to make significant infrastructure expenditures to address the existing lack of charging stations in order to maintain this surge in consumer interest in EVs.The two main obstacles to EV adoption have always been affordability and charging, she said, adding that if oil prices rise, the overall cost of ownership may even out. “Outside of China, the upfront price of EVs are still generally more expensive than gasoline cars.”
With a few notable outliers, like Japan, EV adoption rates have been increasing throughout Asia even prior to the oil shock of the Iran War. Over half of all automobile sales in China are EVs and plug-in hybrids, as a result of the government’s efforts to foster the development of a domestic alternative energy sector. According to UK-based think tank Ember, Southeast Asian nations are among the most electric-friendly in the world, with EV adoption rates of about 40%, higher than those in the UK and Europe.
“We were previously less optimistic about EV demand in 2026, as the government’s lower subsidy made EV prices less attractive compared with conventional fuel-powered vehicles,” stated Surapong Paisitpatnapong, a representative for the automotive sector group of the Federation of Thai Industries. “If oil prices stay at current levels or rise further, we expect a significant increase in EV demand.”
According to a statement from the prime minister’s office in landlocked Laos, the government is responding to the spike in oil prices by reducing EV registration and servicing costs by 30% and increasing them by the same amount for gas-powered vehicles as part of emergency measures.
As the world’s leading manufacturer of electric vehicles, China is expected to benefit the most from an increase in EV demand. According to data from the China Association of Automobile Manufacturers, shipments of electric vehicles and plug-in gas-electric hybrids to other countries in the first two months of this year—prior to the start of the war—had already more than doubled from the previous year.
Non-Chinese companies like Tesla Inc., Nissan Motor Co., and Hyundai Motor Co. are also well-positioned for an increase in the demand for electric vehicles in Asia. However, a lot of traditional manufacturers aren’t since they introduced all-electric cars later than expected and then swiftly withdrew their intentions. Due in part to a change in US policy under President Donald Trump that has deprived EVs of subsidies and other government backing, companies like General Motors Co., Honda Motor Co., and Ford Motor Co. have scaled back their EV goals.
Kiwi Pump Costs
Views about EVs have been strengthened throughout the Asia Pacific area by tales of fuel-purchase restrictions and lengthy lines at gas stations. Demand for BYD’s range has significantly increased in New Zealand, mirroring trends in Manila and other places. General Manager Warren Wilmot stated on a local radio program that the quantity of totally electric and hybrid cars sold on March 14 was four times the typical amount for a Saturday.
EV sales at Jaruaypornphatra Leesomsiri’s three showrooms in Nakhon Ratchasima province, northeast of Bangkok, have increased by at least 20% since the beginning of the Iran crisis. MG is a brand that is currently owned by China’s SAIC Motor Corp. Despite government subsidies that somewhat offset the cost, Jaruaypornphatra stated that buyers are willing to accept any EV in stock and are asking for quicker delivery to protect themselves from pricey fuel.
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