The ongoing conflict in Iran, which has disrupted oil supplies through the Strait of Hormuz, is accelerating a global shift toward electric vehicles (EVs), particularly benefiting Chinese automakers in emerging markets. The blockade has curtailed about 20% of global crude oil and liquefied natural gas shipments, predominantly affecting Asia and subsequently Africa, where rising fuel prices are prompting consumers to turn to EVs despite limited charging infrastructure.

According to an analysis of Chinese customs data by the think tank Ember, exports of Chinese electric vehicles reached a record $9.4 billion in April 2026. Shipments have surged to countries including Australia, Brazil, and key regions such as Southeast Asia and East Africa. The Chinese Association of Automobile Manufacturers reported that exports of passenger EVs and plug-in hybrids totaled approximately 435,000 units in May, more than double the volume from the previous year.

Higher fuel costs are motivating drivers to switch to electric vehicles to reduce transportation expenses. Meanwhile, governments across the developing world—from Laos to Ethiopia—are promoting electrification efforts to lower oil import bills and reduce government fuel subsidies. Laos, for example, imposed a ban on the import of fuel-powered vehicles starting May 2026 for the remainder of the year as part of its strategy to cut oil dependence and accelerate EV adoption.

However, the expansion of charging infrastructure has struggled to keep pace with rapidly increasing EV imports. In many emerging markets, this imbalance presents a "chicken-and-egg problem," where the lack of sufficient charging facilities deters consumers from buying electric cars, yet infrastructure development is constrained by the relatively small EV fleet. Paul Gong, head of UBS bank’s China automotive industry research, said government investment in charging networks is critical to overcoming this barrier and accelerating adoption.

In Africa, government entities and state-owned utilities have taken a leading role in developing charging infrastructure, a model that analysts believe could be replicated in other emerging markets, including parts of Asia. Chinese EV imports into Africa rose to about 44,000 units in 2025, marking a 130% increase compared to the previous year, according to data from China’s Ministry of Commerce.

Transportation costs represent a substantial portion of household expenditures across many developing countries, where limited public transit options and long commutes increase reliance on private vehicles. In South Africa, for example, transportation accounts for nearly 20% of household spending, according to a 2024 study by Stellenbosch University.

Global electric vehicle sales have been rising steadily, with one in four new cars sold worldwide in 2025 classified as electric, according to the International Energy Agency (IEA). The IEA projects EV sales will reach 23 million in 2026, comprising nearly 30% of total vehicle sales globally. Chinese manufacturers currently supply about 60% of the world’s electric cars.

Looking ahead, Chinese automakers plan to further expand their presence overseas. Jerry Gan, CEO of Geely Auto, one of China’s largest automotive companies, announced in March that the company aims to accelerate its international growth, particularly in Southeast Asia, where it has been expanding its EV offerings.