High oil prices drive a surge in Chinese electric vehicle sales, but
charging networks lag behind
[June 22, 2026] By
CHAN HO-HIM, ALLAN OLINGO and ANTON L. DELGADO
HONG KONG (AP) — The war in Iran has helped reshape the global electric
vehicle market, giving Chinese automakers an opening across the
developing world as soaring fuel prices push drivers towards electric
vehicles, even as charging infrastructure lags behind a wave of imports.
The blockade of the Strait of Hormuz disrupted shipping of about a fifth
of the world’s crude oil and liquified natural gas, first hitting Asia —
the main destination for the fuels — followed by Africa.
This shock accelerated a trend that was already spreading across the
developing world. In April, global exports of Chinese EVs hit a record
$9.4 billion, according to an analysis by think tank Ember of Chinese
customs data. Shipments surged to countries such as Australia, Brazil
and regions like Southeast Asia and East Africa.
China exported about 435,000 passenger EVs and plug-in hybrids in May,
more than double from a year earlier, according to the Chinese
Association of Automobile Manufacturers.
As fuel costs rise, more drivers are switching to EVs to save money,
while governments from Laos to Ethiopia are embracing electrification to
curb oil imports and reduce costs of fuel subsidies.
But faster EV adoption is outpacing the expansion of charging networks.
Governments and state-owned utilities in Africa are taking a leading
role in building them — a model analysts say could help other emerging
markets, like Asia, speed the shift away from fossil fuels.
When a nation lacks sufficient charging infrastructure and EV fleet
size, it is a “classic chicken-and-egg problem” regarding what comes
first, said Paul Gong, head of UBS bank’s China automotive industry
research.
“At that stage, government support for infrastructure could help
accelerate adoption,” he said.
Fuel shock drives EV use in Asia and Africa
Across the developing world, drivers are looking beyond the gas pump.
In Southeast Asia, imports of Chinese EVs have surged in Thailand, Laos
and the Philippines. In May, Laos banned the import of fuel-powered
vehicles for the rest of 2026 to cut oil import costs and encourage the
EV shift.
Africa imported around 44,000 Chinese EVs in 2025, a 130% jump from the
year before, according to Chinese Commerce Ministry data.
Across Asia and Africa, transport is one of the largest household
expenses.
Limited public transit, long commutes and a reliance on private vehicles
make families vulnerable to volatile fuel prices. In South Africa,
transportation accounts for nearly a fifth of household spending,
according to a 2024 study by Stellenbosch University in South Africa's
Western Cape province.
So, as fuel prices surge, global interest in EVs has been growing, said
Mark Wakefield, with the consultancy AlixPartners.
One in four new cars sold worldwide last year were electric, according
to the International Energy Agency.
Global electric car sales are expected to grow further in 2026 and reach
23 million, making up nearly 30% of all cars sold worldwide, according
to the IEA’s latest EV outlook.
“In the next five years, we will accelerate (our) overseas expansion,”
said Jerry Gan, CEO of Geely Auto, one of China's biggest automakers, at
a company event in March as the auto group makes inroad into regions
like Southeast Asia including selling EVs.
Chinese automakers supplied around 60% of electric cars sold globally,
the IEA said. They have also been targeting Europe, Africa and Latin
America.
In Vietnam, automaker VinFast also logged stronger sales. Demand from
Southeast Asia helped drive a 42% year-on-year increase in the company's
January-March quarterly revenue.
On most mornings, Nguyen Thien Bao threads his VinFast electric
motorbike through the jammed traffic of Vietnam’s capital Hanoi —
ferrying passengers and deliveries. The EV bike has sharply cut his
expenses as fuel prices rise.
“Before, so much of my income went into fuel,” he said. “Now, I can
actually save some money.”
[to top of second column] |
A motorcyclist fills his tank in front of an electric vehicle
charging terminal at a gas station in Thailand's Nakorn Pathom
province on May 28, 2026. (AP Photo/Anton L. Delgado)
 Charging stations aren't keeping
up
But while EV imports are booming, charging infrastructure is still
lagging even as installations have accelerated.
Thailand, for instance, has around 4,600 public charging locations
to serve more than 424,000 battery EVs and plug-in hybrids,
according to the Electric Vehicle Association of Thailand — around
one for every 92 vehicles. The country currently has roughly 12,000
public chargers, the IEA said.
Chitsanupong Nuamnorm's solution is to keep his gasoline-fueled
Mazda 2 for weekend trips, although the Chinese-made MG4 EV he
bought on Feb. 27 — the day before the Iran war began — is saving
him a lot of money.
Yutthana Samranwong, a 54-year-old driver in Thailand’s northern
Phitsanulok province, says booking online for public charging ports
to keep his MG4 EV running is a gamble.
“It's a bit of a headache,” said Samranwong, who sometimes works
with the Grab ride-hailing and delivery service.
In Bangkok, strained charging networks are prompting some drivers to
consider returning to fuel-powered cars.
In Malaysia, public fast chargers were up more than 70% in 2025,
according to the IEA, after the government rolled out incentives to
including a tax break for operators of charging points that meet
certain investment criteria.
Indonesia has more than 4,500 public charging stations set up the
state-owned power utility PLN, the IEA said.
Ethiopia, which has banned non-EV imports, had only around a dozen
charging stations as of mid-2025, and the government estimates it
needs more than 1,170 stations to meet rising demand. In the capital
Addis Ababa, 40 stations are under construction, according to the
state electricity utility.
“In developing markets, affordability can accelerate the shift, but
the pace of adoption will still depend heavily on infrastructure,
power reliability and use case,” said Chris Liu, with the technology
research and advisory group Omdia.
State utilities take the wheel to build charging stations
In Indonesia, more than 4,500 public chargers have been deployed by
its state-owned power utility PLN, the IEA said.
African countries also are increasingly turning to state-owned
utilities to build EV charging networks, betting public investment
can solve one of the biggest obstacles to electric vehicle adoption.
“Utilities are recognizing that electric mobility will become a
meaningful source of future electricity demand,” said Ndia
Magadagela, co-founder and CEO of Everlectric, a South African
commercial EV leasing company.
There are around 2,000 public EV charging stations in Africa, with
South Africa accounting for the largest share.
State-controlled utility Kenya Power plans to build 44 charging
stations within the next year.
But building networks of charging stations is difficult in
developing markets, according to Omdia's Liu, who said grid
connections and maintenance are key issues.
While BYD, for example, is expanding its ultrafast EV charging
network in places like Europe, large Chinese automakers typically
may have relatively little incentive to build networks outside
China, he said.
State-owned utilities, therefore, can play a larger role in this,
according to Liu, since they are closely tied to a country’s grid
planning, electricity pricing and distribution capacity.
“You need charging infrastructure to support an even larger fleet
size,” said Gong, the auto analyst from UBS.
___
Olingo reported from Nairobi, Kenya, and Delgado reported from
Bangkok. Associated Press writer Aniruddha Ghosal contributed to
this report.
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