Rising fuel prices in Asia, driven by the Middle East conflict, have sparked a sharp increase in electric vehicle sales across Southeast Asia. With crude oil prices climbing nearly 50 percent since the war began and recently exceeding $100 a barrel, cost-conscious consumers are turning to electric cars to avoid soaring fuel costs.
In Vietnam, Vinfast has seen a 127 percent surge in annual sales, with 27,600 cars sold in March alone. Nearly 40 percent of new cars sold in Vietnam in 2025 were electric, and demand is accelerating. Sales staff report that over half of recent buyers switched from petrol to electric, with showroom foot traffic up by around 30 percent. Extended hours are now needed to manage the rush.
Chinese manufacturers, particularly BYD, are also benefiting. At the Bangkok Auto Show, BYD secured the most orders of any brand, surpassing Toyota for the first time. In the Philippines, BYD showrooms report record foot traffic, with customers citing high fuel prices as the decisive factor. All available stock in some locations has already been reserved.
Economic pressures are driving the shift. “You have the individual consumer response to what they are seeing in terms of the price of petrol or diesel suddenly surge,” said Euan Graham, an analyst at energy think tank Ember. The trend is not limited to Southeast Asia—electric vehicle registrations doubled in March in Japan, South Korea, and New Zealand, and rose by more than 50 percent in India and Australia.
Governments are responding. Indonesia has pledged to accelerate the development of a national electric vehicle ecosystem to curb high energy consumption. Meanwhile, Chinese EV exports to Southeast Asia doubled in March compared to the same month last year, according to industry data.
With fuel prices showing little sign of easing, analysts expect the shift toward electric vehicles to continue, reshaping transport markets across the region.
