The recent U.S.-Israeli military conflict with Iran has reshaped the global electric vehicle (EV) market, creating new opportunities for Chinese automakers across developing economies. Surging fuel prices have encouraged consumers to shift toward electric vehicles, even as charging infrastructure struggles to keep pace with the growing number of EV imports.

According to an analysis by energy think tank Ember based on Chinese customs data, China's global exports of electric vehicles reached a record $9.4 billion in April.

Exports increased significantly to markets including Australia, Brazil, Southeast Asia, and East Africa. In May alone, China exported approximately 435,000 electric and hybrid passenger vehicles, more than double the volume recorded during the same month last year, according to the China Association of Automobile Manufacturers (CAAM).

High Fuel Prices Drive EV Demand

As gasoline and diesel prices continue to rise, more drivers are turning to electric vehicles to reduce transportation costs. At the same time, governments from Laos to Ethiopia are promoting electric mobility to lower oil imports and reduce fuel subsidy expenses.

However, EV adoption is expanding much faster than charging infrastructure. Across Africa, governments and state-owned enterprises are leading investments in public charging networks—a model analysts believe could help emerging Asian economies transition away from fossil fuels more rapidly.

Chinese EVs Expand Across Asia and Africa

Chinese electric vehicle imports have surged across Southeast Asia, particularly in Thailand, Laos, and the Philippines.

In May, Laos banned imports of gasoline and diesel-powered vehicles until the end of 2026 as part of its strategy to cut oil import costs and accelerate EV adoption.

Meanwhile, Africa imported approximately 44,000 Chinese electric vehicles in 2025, representing an annual increase of 130%, according to China's Ministry of Commerce.

Charging Infrastructure Remains a Major Challenge

Transportation remains one of the largest household expenses across many African and Asian countries, where limited public transportation and long commuting distances leave consumers highly vulnerable to fluctuations in fuel prices.

In South Africa, transportation accounts for nearly 20% of household spending, according to a 2024 study conducted by Stellenbosch University.

The International Energy Agency (IEA) estimates that one in every four new cars sold globally last year was an electric vehicle, with worldwide EV sales reaching approximately 23 million units, representing nearly 30% of total global vehicle sales.

Chinese manufacturers currently account for around 60% of global EV sales, according to the IEA.

Infrastructure Lags Behind Market Growth

Despite rapid growth in EV imports, charging infrastructure continues to lag behind demand.

Thailand currently has around 4,600 public charging stations serving more than 424,000 battery-electric and plug-in hybrid vehicles, equivalent to roughly one charging station for every 92 vehicles, according to the Electric Vehicle Association of Thailand.

The IEA estimates Thailand now has approximately 12,000 public charging points, while Malaysia expanded its public fast-charging network by more than 70% during 2025 following government tax incentives for charging station operators.

Indonesia has installed more than 4,500 public charging stations through the state-owned electricity company.

Ethiopia, which has banned imports of non-electric vehicles, had only around 12 charging stations by mid-2025, despite government estimates indicating that the country will require more than 1,170 charging stations to meet growing demand.

In Addis Ababa, the state-owned utility is currently constructing 40 additional charging stations as part of the country's nationwide electrification strategy.