Oil price shock triggers 140% jump in China’s electric vehicle exports to record levels

CHINA’S electric vehicle (EV) exports surged by 140 percent in March, hitting an all-time monthly high as rising fuel costs pushed consumers toward alternative energy vehicles.

According to data from the China Passenger Car Association, cited by Bloomberg, the country exported approximately 349,000 EVs during the month, the highest figure ever recorded for a single month, according to Oilprice.com.

The spike in demand comes as motorists across Asia-Pacific, Europe, and the United States increasingly turn to EVs and hybrids in response to soaring fuel prices. The surge in oil costs followed the Middle East conflict, which has disrupted more than 10 million barrels per day of crude supply at the Strait of Hormuz, pushing global oil prices above $100 per barrel from around $70 prior to the crisis.

With fuel prices climbing rapidly, consumers are actively exploring electric alternatives. This shift is particularly visible in Asia, where the impact of the fuel crisis was first felt, and EV showrooms are seeing a surge in customer traffic.

In Australia, delivery wait times for EVs have stretched to several months, according to the Australian Financial Review. Chinese automaker BYD, the country’s leading EV exporter, noted that waiting periods for its popular Sealion 7 and Atto 2 models have increased significantly, from just a few weeks to as long as two to three months.

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Meanwhile, demand signals are also strengthening in Europe. Autotrader, the UK’s largest automotive marketplace, reported a sharp rise in EV interest following the first bombing in Iran on February 28.

“Our data shows a sharp increase in both new and used EV enquiries since the conflict began, with used EV interest reaching record levels,” said Chief Customer Officer at Autotrader, Ian Plummer, at the end of March.

He added that concerns over the vulnerability of traditional fuel sources during global crises are making electric vehicles more attractive, positioning the conflict as a key driver of EV demand in the UK.

In the United States, interest in EVs is also growing as gasoline prices climb above $4 per gallon nationwide. However, Morgan Stanley suggests that a sustained increase in EV and hybrid demand may only materialise after about six consecutive months of elevated fuel prices.