Oil Prices Rise, China's Electric Vehicle Industry Projected to Soar

JAKARTA - The surge in global oil prices due to geopolitical tensions in the Middle East is seen as strengthening the appeal of electric vehicles (EVs), particularly for Chinese manufacturers who are expanding internationally.

Quoted from CNN on Thursday (26/3/2026), the combination of increasingly affordable Chinese EVs and rising petrol prices has the potential to drive global industry growth.

As Chinese-made EVs become cheaper, petrol prices are getting more expensive.

Industry analysts assess that the rise in fuel prices opens opportunities for Chinese EV brands to strengthen market penetration in the Asian region.

Managing Director of Sino Auto Insights, Tu Le, stated that Chinese EV producers have the potential to leverage this momentum to expand their market share.

“There is potential for Chinese brands to significantly penetrate the Asian market due to high petrol costs,” said Tu Le.

The rise in petrol prices is considered to be changing consumer considerations in choosing vehicles.

If previously the purchase price was a barrier to EV adoption, the surge in operational costs for fossil fuel vehicles makes EVs increasingly economically competitive.

Additionally, Chinese producers have developed large production capacities and a relatively integrated battery supply chain.

The latest report from the energy think tank Ember also highlights the impact of EVs on global oil consumption.

In its report, Ember describes EVs as the biggest driver for reducing import costs, while estimating that EV usage last year suppressed global crude oil consumption by 1.7 million barrels per day (bpd).

That figure is equivalent to about 70% of Iran’s oil exports in 2025.