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Middle East war revs up demand for EVs

Surge in oil prices pushes consumers to electric cars in Asian economies

Updated: 2026-04-21 09:59
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Workers assemble an electric vehicle at a factory in Indian state of Tamil Nadu on Aug 4. GETTY IMAGES

'Game changer'

Global consultancy Wood Mackenzie said, as quoted by E&E News by Politico, the war could be a "game changer" for EVs. It estimates that roughly 80 million new passenger EVs could enter the global market by 2030 as a result.

In a separate analysis, the consulting firm said the disruption to oil and gas flows caused by the conflict could cut global oil demand by 20 percent by 2050 as countries reduce dependence on imported fuels and prioritize electrification.

Vinfast, listed on the Nasdaq, saw a 127 percent surge in annual sales in Vietnam in March, reaching 27,600 cars.

"At this point in time, clients consider fuel costs a lot when making a decision on which cars to buy," said Pham Minh Hai, deputy head of sales at a Vinfast showroom.

"In March, we sold 300 to 400 cars," he said, noting that the showroom normally sells between 200 and 250 cars a month.

Hai said more than 50 percent of his clients switched from gasoline to electric cars last month, while the number of customers at the showroom was up by around 30 percent.

He said the closing hours had been extended to deal with the rush.

Outside Vietnam, Chinese EV manufacturers are booming.

The biggest Chinese automakers, including BYD and Geely Auto, have been increasing their efforts in boosting sales abroad, including expanding production facilities outside China.

At the Bangkok International Motor Show earlier this month, BYD secured most orders for any manufacturer, surpassing Japan's Toyota for the first time.

"I drive a lot, nearly 100 kilometers a day … with the current fuel situation and no idea how long it will last, it's become a major factor pushing me to make the switch," said Pleng Nawintham, a 36-year-old pharmacist from Thailand.

BYD was also seeing increased sales in the Philippines.

Mae Anne Clarisse Bacquiano, manager of a BYD showroom in the suburbs of Manila, said foot traffic at the dealership was "at another level".

"It was all because of the rise in fuel prices," she said. "Earlier today, I had a customer, a doctor who was ranting about how he is being punished by gas prices … He was in a hurry to go full electric. There'd be a huge difference in expenses."

"I don't expect the gas (prices) to go back down over the next couple of months," said Arlone Abello, an entrepreneur who was checking out BYD models at the showroom.

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