The ongoing war in Iran has significantly impacted the global electric vehicle (EV) market. Rising fuel prices are influencing drivers in the developing world to switch to EVs. Chinese automakers are taking advantage of this shift, even though charging infrastructure development is lagging behind.
A blockade of the Strait of Hormuz has disrupted around 20% of the world’s crude oil and liquefied natural gas shipments. This initially affected Asia, the primary destination for these fuels, followed by African regions. The situation has accelerated a trend already visible across the developing world.
In April, Chinese EV exports reached a record $9.4 billion, according to an analysis by think tank Ember based on Chinese customs data. Countries such as Australia, Brazil, and areas like Southeast Asia and East Africa experienced significant increases in shipments. China exported roughly 435,000 passenger EVs and plug-in hybrids in May, more than twice the amount from the previous year, according to the Chinese Association of Automobile Manufacturers. With fuel costs surging, drivers are switching to EVs to economize, while governments in nations like Laos and Ethiopia are adopting electrification to minimize oil imports and reduce fuel subsidy expenses.
Despite the spike in EV adoption, the expansion of charging networks has not kept pace. Governments and state-owned utilities in Africa are spearheading efforts to develop charging infrastructure, presenting a model that analysts suggest could assist other emerging markets, such as in Asia, in transitioning away from fossil fuels.
Paul Gong, head of UBS bank’s China automotive industry research, describes the situation as a “classic chicken-and-egg problem” in terms of what should take precedence: infrastructure development or EV fleet growth. Gong posits that government backing for infrastructure could enhance EV adoption rates.
Fuel shock spurring EV interest in Asia and Africa is notable. Southeast Asian countries, including Thailand, Laos, and the Philippines, have seen a surge in Chinese EV imports. In 2025, Laos instituted a ban on fuel-powered vehicles through the year 2026 to lower oil import expenditures and promote the shift to EVs. Data from the Chinese Commerce Ministry revealed that Africa imported approximately 44,000 Chinese EVs in 2025, marking a 130% increase from the previous year.
Transportation is a substantial household expense across Asia and Africa due to limited public transit, lengthy commutes, and reliance on private vehicles, rendering families susceptible to fluctuating fuel prices. In South Africa, nearly 20% of household spending is attributed to transportation, according to a 2024 study by Stellenbosch University.
Mark Wakefield from consultancy firm AlixPartners observed growing global interest in EVs as fuel prices rose. The International Energy Agency reported that one in four vehicles sold globally last year was electric. Projections indicate global EV sales will continue to rise, reaching 23 million by 2026, constituting almost 30% of all car sales.
Jerry Gan, CEO of Geely Auto, highlighted plans to accelerate overseas expansion during a company event in March, targeting regions like Southeast Asia for EV sales. IEA data shows Chinese automakers supplied around 60% of electric cars sold globally. They are also extending their reach to Europe, Africa, and Latin America.
Vietnamese automaker VinFast experienced stronger sales, driven by demand from Southeast Asia, resulting in a 42% year-on-year increase in January-March quarterly revenue.
In Hanoi, Nguyen Thien Bao uses his VinFast electric motorbike for commute and deliveries, saving on fuel expenses amid rising prices. Charging stations are not growing as rapidly as EV imports. For example, Thailand has around 4,600 public charging locations for over 424,000 battery EVs and plug-in hybrids—averaging one station per 92 vehicles. The International Energy Agency noted the country has about 12,000 public chargers.
The charging network strain is causing some Bangkok drivers to consider fuel-powered cars. In Malaysia, public fast chargers increased by over 70% in 2025 following governmental incentives. The state-owned power utility PLN in Indonesia installed more than 4,500 public charging stations, according to the IEA.
In Ethiopia, with a ban on non-EV imports leading to demand increases, the government estimates a need for over 1,170 charging stations, with 40 currently under construction in Addis Ababa.
Chris Liu from tech research and advisory group Omdia indicated that affordability accelerates the EV shift in developing markets, but infrastructure, power reliability, and use case are crucial adoption factors. State-owned utilities are increasingly taking the lead role in building charging networks, potentially overcoming one of the major barriers to EV adoption.
In Africa, approximately 2,000 public EV charging stations exist, primarily in South Africa. State-controlled utility Kenya Power plans to construct 44 charging stations next year.
Despite the challenges, Ndia Magadagela, CEO of Everlectric, a South African commercial EV leasing company, noted utilities recognize a growing future electricity demand from electric mobility.
Building charging networks remains complex in developing regions, with essential grid connection and maintenance issues, Liu commented. Chinese automakers, like BYD, expanding ultrafast EV charging networks in Europe, have less motivation to develop networks outside China. However, state-owned utilities could play a significant role due to their involvement in grid planning, pricing, and distribution.
Gong, the UBS auto analyst, stated, “You need charging infrastructure to support an even larger fleet size.”