The ongoing conflict in Iran has had significant repercussions for the global electric vehicle (EV) market, particularly benefiting Chinese automakers in developing regions. As fuel prices rise significantly, many drivers are shifting towards electric vehicles, drawn by the potential for savings despite the current limitations in charging infrastructure.
The disruption of shipping through the Strait of Hormuz, which affects about 20% of the world’s crude oil and liquefied natural gas supply, has primarily impacted Asia—known as the main destination for these fuels—followed closely by Africa. This crisis has accelerated a movement towards electrification already underway in developing countries, highlighting a marked increase in the export of Chinese EVs.
In April, global exports of Chinese electric vehicles surged to a record $9.4 billion, according to analysis from think tank Ember based on Chinese customs data. May saw China exporting around 435,000 passenger EVs and plug-in hybrids, more than doubling from the previous year, as demand from nations like Australia and Brazil increased, particularly in Southeast Asia and East Africa.
As fuel costs escalate, numerous governments across different countries, including Laos and Ethiopia, are advocating for electrification to reduce their reliance on imported oil and the expenses associated with fuel subsidies. However, this accelerated adoption of electric vehicles is often challenged by the slow expansion of charging networks. In Africa, state-owned utilities are spearheading efforts to build charging infrastructure, a model believed to be replicable in other emerging markets, particularly in Asia.
Paul Gong, head of automotive industry research at UBS, emphasizes that the simultaneous need for sufficient EV charging infrastructure and increased EV fleet size represents a classic "chicken-and-egg" conundrum. He suggests that government support for charging infrastructure is vital to accelerate EV adoption significantly.
In Southeast Asia, the demand for Chinese EVs has notably surged in countries like Thailand, Laos, and the Philippines. For instance, Laos has imposed a ban on fuel-powered vehicle imports for the remainder of 2026 to reduce oil import costs while promoting the usage of electric vehicles. Additionally, data from the Chinese Commerce Ministry reveals that Africa imported around 44,000 Chinese electric vehicles in 2025, marking a 130% increase from the previous year.
With transportation accounting for a significant portion of household expenses in regions such as South Africa and Southeast Asia, the rising fuel prices have driven a growing global interest in electric vehicles. According to the International Energy Agency, one in four new cars sold globally last year was electric, with projections indicating that sales could reach 23 million by 2026, representing nearly 30% of all cars sold worldwide.
Geely Auto's CEO, Jerry Gan, has expressed the company's commitment to expanding their overseas footprint, especially in Southeast Asia, further highlighting how Chinese automakers dominate the global EV market—supplying about 60% of electric cars sold worldwide.
While demand for electric vehicles continues to grow, the development of adequate charging infrastructures has not kept pace. In Thailand, there are approximately 4,600 public charging stations catering to over 424,000 electric vehicles, implying a significant gap in service availability. In cities like Bangkok, inadequate charging networks have led some drivers to contemplate reverting to fuel-powered vehicles due to the frustrations of securing charging slots for their EVs.
Efforts in countries like Malaysia, where public fast chargers increased by over 70% in 2025, showcase the potential for growth in charging infrastructure when state incentives are applied. Similarly, a focus on utility-led charging infrastructure is emerging in Africa, with projects underway to establish more public charging stations. However, challenges remain in developing networks, particularly concerning grid reliability and maintenance.
As this shift towards electric vehicles accelerates, the role of state-owned utilities in building charging stations becomes increasingly prominent. The growth of electric mobility is viewed as a critical future demand for electricity, necessitating strategic investments from public entities. The expansion of charging infrastructure is fundamental to supporting the growing fleet size of electric vehicles worldwide.
