Soaring Oil Prices Fuel Surge in Chinese EV Sales Globally, Charging Infrastructure Trails

Global electric vehicle sales are experiencing a significant surge, particularly in developing nations, driven by escalating oil prices and an increased focus on reducing fuel import costs. Chinese automakers are at the forefront of this trend, expanding their reach across Asia, Africa, and Latin America.

The disruption of oil shipping routes, including the blockade of the Strait of Hormuz, has directly impacted fuel prices, accelerating a shift towards electric vehicles (EVs). In April, global exports of Chinese EVs reached a record $9.4 billion, with notable increases in shipments to Australia, Brazil, Southeast Asia, and East Africa. In May, China exported approximately 435,000 passenger EVs and plug-in hybrids, more than doubling from the previous year.

Drivers in many developing countries are turning to EVs to mitigate rising transportation expenses, which represent a substantial portion of household budgets. Governments in regions like Southeast Asia and Africa are also embracing electrification to curb oil import expenditures and reduce the burden of fuel subsidies. Laos, for example, banned the import of fuel-powered vehicles through 2026 to encourage EV adoption.

Globally, electric cars accounted for one in four new cars sold last year, according to the International Energy Agency (IEA). Sales are projected to continue growing, with the IEA predicting that EVs will make up nearly 30% of all cars sold worldwide by 2026.

Chinese automakers, which supply about 60% of electric cars sold globally, are actively targeting new markets. Companies like Geely Auto have announced plans for accelerated overseas expansion, and VinFast in Vietnam has also seen stronger sales, partly due to demand from Southeast Asia.

Challenges in Charging Infrastructure

Despite the boom in EV imports, the expansion of charging infrastructure is struggling to keep pace. In Thailand, there are roughly 12,000 public chargers to serve over 424,000 battery EVs and plug-in hybrids, a ratio of about one charger for every 92 vehicles. This strain has led some drivers in Bangkok to consider returning to gasoline-powered cars.

Building charging networks in developing markets presents significant challenges, including grid connections and maintenance. While some countries are seeing growth in public chargers, such as Malaysia with a more than 70% increase in fast chargers in 2025, others like Ethiopia face substantial deficits. Ethiopia, which has banned non-EV imports, had only about a dozen charging stations as of mid-2025 but estimates a need for over 1,170 to meet rising demand.

Governments and state-owned utilities in Africa are taking a leading role in developing charging infrastructure, a model that analysts suggest could be replicated in other emerging markets. These utilities are seen as critical partners due to their involvement in grid planning, electricity pricing, and distribution capacity. In South Africa, for instance, the company Everlectric notes that utilities recognize electric mobility as a significant source of future electricity demand. Currently, Africa has around 2,000 public EV charging stations, with South Africa hosting the largest share.

Analysts note that while affordability can drive EV adoption in developing markets, the pace is heavily reliant on the availability of infrastructure, reliable power, and suitable use cases. While major Chinese automakers are expanding their charging networks in regions like Europe, building extensive networks outside China may not always be their primary incentive, making the role of state-owned utilities increasingly important.