The ongoing conflict in Iran has altered the global electric vehicle (EV) market. Chinese automakers are gaining a foothold in developing countries as high fuel prices drive a shift towards EVs, despite insufficient charging infrastructure.
The blockade of the Strait of Hormuz has disrupted about 20% of global crude oil and natural gas shipments. The initial impact was felt in Asia, followed by Africa. This disruption has accelerated an existing trend in the developing world.
In April, China’s EV exports reached a record $9.4 billion, based on Chinese customs data analyzed by think tank Ember. Exports soared to nations such as Australia, Brazil, and regions like Southeast Asia and East Africa.
By May, China exported roughly 435,000 passenger EVs and plug-in hybrids, marking more than a twofold increase compared to the previous year, according to the Chinese Association of Automobile Manufacturers.
As fuel costs rise, an increasing number of drivers are opting for EVs to save money. Governments across the globe, including those in Laos and Ethiopia, are promoting electrification to reduce oil imports and minimize fuel subsidy expenses, although the expansion of charging networks is lagging behind the fast adoption of EVs.
Governments and state-owned utilities in Africa are leading in building these networks, serving as a model for other emerging markets like Asia to expedite the transition away from fossil fuels.
Paul Gong, head of UBS bank’s China automotive industry research, refers to the situation as the “classic chicken-and-egg problem” about whether the fleet size or charging infrastructure should come first. Gong suggests that government support for infrastructure could significantly accelerate EV adoption.
Fuel shock drives EV use in Asia and Africa: Drivers are shifting away from gasoline-powered vehicles amidst soaring fuel prices.
Chinese EV imports have surged in Southeast Asian countries such as Thailand, Laos, and the Philippines. In May, Laos banned fuel-powered vehicle imports for the remainder of 2026 to cut oil import costs and stimulate EV transition.
African countries imported approximately 44,000 Chinese EVs in 2025, marking a 130% growth from the previous year, according to the Chinese Commerce Ministry.
Transportation is a significant household expense across Asia and Africa, involving limited public transit, lengthy commutes, and dependence on private vehicles. This makes families susceptible to fluctuating fuel prices. In South Africa, transportation accounts for nearly 20% of household spending, according to a 2024 study by Stellenbosch University.
Mark Wakefield from consultancy AlixPartners noted the growing global interest in EVs driven by increasing fuel prices.
The International Energy Agency reported that one in four new cars sold globally last year were electric. It anticipates that global electric car sales will grow further in 2026, reaching 23 million, making up nearly 30% of all cars sold worldwide.
Jerry Gan, CEO of Geely Auto, a major Chinese automaker, announced plans for expanded international expansion, particularly into Southeast Asia, during a company event in March. Chinese automakers supplied around 60% of the world’s electric cars, according to the IEA.
In Vietnam, automaker VinFast reported stronger sales due to demand from Southeast Asia, which contributed to a 42% year-on-year revenue increase in its January-March quarter.
Nguyen Thien Bao in Hanoi uses his VinFast electric motorbike for daily transportation. The bike has substantially reduced his expenses amidst rising fuel prices.
“Before, so much of my income went into fuel. Now, I can save some money,” Nguyen said.
Charging stations aren’t keeping up: The rapid growth of EV imports is unmatched by the development of charging infrastructure.
While the import numbers are impressive, charging infrastructure development lags behind. Thailand has approximately 4,600 public charging locations for over 424,000 battery EVs and plug-in hybrids, according to the Electric Vehicle Association of Thailand.
Chitsanupong Nuamnorm continues using his gasoline-fueled Mazda 2 for weekend trips. The MG4 EV he purchased is cost-effective, though he waits for adequate charging infrastructure.
Yutthana Samranwong struggles with the availability of public charging stations for his MG4 EV in Thailand’s Phitsanulok province.
The situation in Bangkok pushes some drivers to reconsider gasoline-powered cars. Malaysia saw a 70% increase in public fast chargers in 2025, following government incentives like tax breaks for operators meeting certain criteria.
Indonesia has deployed more than 4,500 public charging stations through its state-owned power utility, PLN. Ethiopia, which prohibits non-EV imports, had approximately a dozen charging stations by mid-2025, with plans for more than 1,170 to meet rising demand.
In Addis Ababa, construction continues on 40 charging stations, according to the state electricity utility.
Chris Liu from Omdia, a technology research and advisory group, stated that affordability can speed the adoption change, but infrastructure, power reliability, and application remain significant factors.
State utilities take the wheel to build charging stations: Developing markets benefit from public investment in charging networks.
In Indonesia, the state-owned power utility PLN has deployed over 4,500 public chargers. African states increasingly rely on state-controlled utilities for building EV charging networks, leveraging public investment to overcome a major obstacle to EV adoption.
Ndia Magadagela, CEO of Everlectric, a South African EV leasing company, explained that utilities recognize electric mobility as a significant future electricity demand source.
Africa features roughly 2,000 public EV charging stations, with South Africa as the leading contributor. Kenya Power plans to develop 44 charging stations within the year.
Building charging infrastructure in developing markets faces challenges due to grid connections and maintenance, according to Omdia’s Liu. Large Chinese automakers rarely build networks outside China, so state-owned utilities have a larger role in these efforts.
Liu suggested that state utilities could assume greater responsibility, considering their ties to grid planning, electricity pricing, and distribution capacity.
Paul Gong from UBS emphasized the need for charging infrastructure to support an expanding fleet size.
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