The ongoing conflict in Iran has significantly influenced the global electric vehicle (EV) market, creating opportunities for Chinese automakers in developing nations. Rising fuel prices are prompting consumers to switch to electric vehicles, even in the absence of adequate charging infrastructure, as imports increase amidst this fuel crisis.
The blockade of the Strait of Hormuz, which disrupted the shipment of nearly a fifth of the world's crude oil and liquefied natural gas, initially affected Asian markets, the primary destinations for these fuels. This disruption, followed by similar repercussions in Africa, has accelerated a pre-existing trend favoring electric vehicles in developing regions.
In April 2026, global exports of Chinese electric vehicles reached a record $9.4 billion, as reported by the think tank Ember through Chinese customs data. Exports to countries such as Australia and Brazil, as well as regions like Southeast Asia and East Africa, skyrocketed. In May 2026, China exported approximately 435,000 EVs and plug-in hybrids, more than doubling its figures from the previous year, according to the Chinese Association of Automobile Manufacturers.
Rising fuel costs are compelling drivers to transition to electric vehicles for cost savings, while governments in nations such as Laos and Ethiopia are aiming to reduce oil imports and fuel subsidies through electrification initiatives. However, this rapid adoption of electric vehicles often clashes with the slow expansion of charging networks, creating a "chicken-and-egg" dilemma, according to Paul Gong of UBS Bank's automotive research division.
In Southeast Asia, countries like Thailand, Laos, and the Philippines are witnessing a surge in the import of Chinese EVs. Notably, Laos has banned the import of fuel-powered vehicles for the remainder of 2026 to promote the shift toward electric vehicles and reduce oil import costs. The African continent, similarly, imported around 44,000 Chinese EVs in 2025, marking a remarkable 130% increase from the previous year, based on data from the Chinese Commerce Ministry.
Transportation stands as a hefty household expense in both Asia and Africa, where inadequate public transit and long commutes force families to rely heavily on private vehicles. A study in South Africa revealed that transportation accounted for nearly 20% of household spending, as fuel prices continue to rise. This mounting financial burden has contributed to a heightened global interest in electric vehicles, with one in four new car sales worldwide in the previous year being electric, as reported by the International Energy Agency.
Looking ahead, global electric car sales are projected to increase significantly by 2026, reaching approximately 23 million units, thus comprising nearly 30% of all worldwide vehicle sales. Jerry Gan, CEO of Geely Auto, emphasized the company’s commitment to expanding overseas markets, particularly in regions like Southeast Asia, during a company event in March.
Chinese automakers have gained substantial traction in the global market, supplying around 60% of the electric vehicles sold globally, according to the IEA, with intentions to strengthen their presence in Europe, Africa, and Latin America as well. Likewise, Vietnamese automaker VinFast has also reported robust sales growth, largely driven by demand in Southeast Asia.
Despite the impressive increase in EV imports, the scarcity of charging infrastructure remains a critical hurdle. For instance, Thailand boasts approximately 4,600 public charging locations for over 424,000 electric vehicles, which translates to about one charging station for every 92 vehicles. Complications regarding the charging infrastructure have led some drivers to keep traditional gasoline-powered vehicles for convenience.
In contrast, Malaysia recorded over a 70% growth in public fast chargers in 2025 after government incentives were introduced for charging point operators. Meanwhile, Ethiopia faces a significant shortfall in charging stations, needing more than 1,170 stations to meet the expected demand, as only about a dozen are currently available.
To address these deficiencies, state-owned utilities in various countries are stepping up efforts to establish charging networks, aiming to alleviate one of the foremost challenges facing electric vehicle adoption. Ndia Magadagela, co-founder and CEO of Everlectric in South Africa, noted that utilities are beginning to recognize electric mobility as a vital future source of electricity demand.
Overall, while the growth of electric vehicles in developing markets is promising, the subsequent expansion of supportive infrastructure remains critical for sustained adoption and market penetration. The dilemma of electricity availability and infrastructure maintenance continues to present challenges that must be addressed to fully capitalize on this transition towards electric mobility.
