The Tamesis
Sales of electric vehicles in Southeast Asia have surged as oil prices soared due to the war in Iran and car owners abandoned their gasoline-powered vehicles.
Asian countries were particularly hard hit by the war as the crude oil shipments they depended on fell sharply and were left with few alternatives.
The energy crisis has been a windfall for Vinfast, Vietnam’s leading electric car maker, as well as several Chinese manufacturers.
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Vietnam office worker Do Thi Lan explains the simple mathematics of these cars’ appeal at the Vinfast showroom in Hanoi.
“We have to calculate our monthly expenses because the amount of money we spend on oil keeps increasing,” she said. She said her family owns a gas car but is considering buying an electric vehicle to save money.
Dao Thi Hue, also on the show floor, is also looking to go electric.
“Driving an electric car is much better than driving a fuel car, both in terms of cost and saving fuel and queuing up for refueling,” the school teacher said.
Come on 50%
Crude oil prices have surged about 50% since the Middle East war began Breaking through $100 a barrel on Mondayincreasing the cost of each pump.
Nasdaq-listed Vinfast’s annual sales in Vietnam surged 127% to 27,600 units in March.
By 2025, about 40% of cars sold in Vietnam will be electric, but the trend has been accelerating.
“Currently, customers consider fuel costs a lot when deciding which cars to buy,” said Pham Minh Hai, deputy director of showroom sales at Vinfast.
“In March, we sold 300 to 400 cars,” he said, noting that the showroom typically sells 200 to 250 cars a month.
Hai said more than 50% of his customers switched from petroleum vehicles to electric vehicles last month, while the number of customers in showrooms increased by about 30%.
He added that opening hours had been extended to cope with the peak.
China’s BYD gets boost in Southeast Asia
Outside Vietnam, Chinese manufacturers focused on electric vehicles, especially Tesla’s main rival BYD, are booming.
At the Bangkok Motor Show earlier this month, BYD secured the most orders among all manufacturers, surpassing Japan’s Toyota for the first time.
“I drive a lot, almost 100 kilometers (60 miles) a day…Given the current fuel situation and not knowing how long it will last, this has been a major factor pushing me to make the change,” said Pleng Nawintham, a 36-year-old pharmacist from Thailand.
BYD’s sales in the Philippines have also increased.
Traffic at the dealership is “on another level,” said Mae Anne Clarisse Bacquiano, BYD showroom manager in suburban Manila.
“It’s all because of rising fuel prices,” she said. “Earlier today, I had a client, a doctor, complain to me about how he’s being penalized by gas prices… He’s anxious to move to all-electric. There’s going to be a huge difference in cost.”
All inventory for this month has been booked by buyers, she added.
“I don’t expect gasoline (prices) to come back down in the next few months,” said entrepreneur Arlone Abello, browsing BYD models in the showroom.
Sales surge in Asia
BYD’s sales in China have fallen due to fierce local competition, and the manufacturer hopes to gain international momentum.
The company told analysts it now expects to export more than 1.5 million vehicles in 2026, well above the 1.3 million target announced in January.
Exports of electric vehicles from China, with Southeast Asia being its main market, doubled in March compared with the same month last year, according to industry association CPCA.
Economic factors are the primary factor behind the increased demand for green cars.
“Individual consumers are reacting to sudden spikes in petrol or diesel prices,” said Euan Graham, power and data analyst at energy think tank Ember.
The installation of charging stations is also growing rapidly in the region.
Jakarta last week pledged to take “more serious steps to accelerate the development of the country’s electric vehicle ecosystem” to combat “high levels of energy consumption”.
Electric vehicles are also gaining momentum outside Southeast Asia.
“There are signs that global demand has picked up significantly,” Capital Economics said, adding that EV registrations more than doubled in March in Japan, South Korea and New Zealand, and increased by more than 50% in India and Australia.
- Vishakha Saxena Additional Editor AFP
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