Electric Vehicles Gain Traction as Fuel Prices Soar in Developing Nations

Recent global shifts have influenced the electric vehicle (EV) market, giving Chinese manufacturers a chance to expand in developing regions. Rising fuel prices are encouraging drivers to switch to EVs, despite the extended wait for adequate charging infrastructure.

Impact of Global Tensions on Oil Supply

The conflict in Iran has blocked the Strait of Hormuz, disrupting the transportation of about 20% of the world’s crude oil and liquefied natural gas. This disruption initially affected Asia, the primary destination for these fuels, and then hit Africa.

The oil supply challenges have fast-tracked a pre-existing trend towards EV adoption in developing nations. In April, Chinese EV exports reached a record $9.4 billion, as per think tank Ember’s analysis of Chinese customs data. Countries like Australia, Brazil, and regions in Southeast Asia and East Africa reported significant increases in imports.

Surge in EV Sales

Data from the Chinese Association of Automobile Manufacturers shows that China exported approximately 435,000 passenger EVs and hybrids in May, more than double from the previous year. Rising fuel prices have convinced many drivers to save money by switching to EVs. Governments in countries like Laos and Ethiopia support this shift to reduce oil imports and minimize fuel subsidy costs.

Yet, the swift rise in EV purchases has outpaced the growth of charging networks. In Africa, governments and state-run utilities are spearheading the development of charging infrastructure, setting an example for other regions struggling with the same issue.

Paul Gong from UBS highlights the dilemma of inadequate charging networks versus EV supply: “At that stage, government support for infrastructure could help speed up adoption,” he said.

Regional Trends in EV Adoption

In Southeast Asia, Chinese EV imports have surged in places like Thailand, Laos, and the Philippines. Laos, for example, plans a halt on fuel-powered vehicle imports by 2026.

Africa imported around 44,000 EVs from China in 2025, marking a notable increase of 130% from the previous year. In Asia and Africa, transportation forms a large part of household costs, exacerbating the impact of volatile fuel prices. For instance, a 2024 study reported that transportation accounts for nearly 20% of household spending in South Africa.

Mark Wakefield from AlixPartners notes the expanding global interest in EVs as fuel rates climb. Last year, EVs made up one in four new car sales worldwide, as reported by the International Energy Agency (IEA).

Challenges with Charging Infrastructure

Despite the growing number of imported EVs, charging infrastructure remains lacking. Thailand, with more than 424,000 EVs, has only about 4,600 public charging locations.

Some drivers, such as Chitsanupong Nuamnorm, continue using petrol-powered cars for long trips due to inadequate charging points. Others, like Yutthana Samranwong in Thailand, find booking public charging stations frustrating.

In Malaysia, public fast charger numbers increased by 70% in 2025 due to governmental incentives. Meanwhile, Ethiopia, with a ban on non-EV imports, still lacks a sufficient number of charging points to meet demand.

Infrastructure Development Efforts

Across Africa and parts of Asia, state-controlled utilities are extensively working on developing the charging infrastructure. In Africa, public charging stations number around 2,000, with South Africa hosting a large portion.

Kenya Power, a state utility, plans to establish 44 charging stations within a year. According to Chris Liu from Omdia, challenges in developing markets include grid connectivity and maintenance.

BYD, a Chinese automaker, is expanding its ultrafast charging network in Europe. However, Chinese manufacturers generally have limited motivation to grow infrastructures beyond China.

With state-owned utilities closely involved in grid management, electricity pricing, and distribution, they can play a crucial role in fostering the required charging infrastructure, says Liu.

Paul Gong from UBS underscores the significance of infrastructure in supporting an expanding EV fleet size.

Reported by Olingo from Nairobi, Kenya, and Delgado from Bangkok, additional reporting by Aniruddha Ghosal for the Associated Press.

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