Middle East oil shock jolts EV demand, putting Chinese exports in fast lane
Orders for Chinese NEVs are rising along with footfalls at EV dealerships both at home and overseas, according to Nomura analyst
The energy shock stemming from the Middle Eastern conflict may help Chinese electric-vehicle (EV) makers exceed their overseas expansion goals this year, according to analysts.
“High oil prices – and even gasoline shortages in some countries – will accelerate the pace of China’s EV exports,” said Yale Zhang, managing director at the consultancy Automotive Foresight in Shanghai. “This oil crisis presents a historic opportunity for China’s EV industry, just as the oil crisis of the 1970s paved the way for fuel-efficient Japanese cars.”
The tailwind comes as major carmakers such as BYD and Geely shift their focus to overseas sales away from the price war at home amid a tightening regulatory crackdown and reduced government incentives.
BYD recently told analysts that its targeted overseas sales could reach 1.5 million units this year, up from its earlier forecast of 1.3 million units in January. It sold 1.05 million units abroad in 2025.
The world’s largest EV seller saw its offshore sales jump 50 per cent year on year to over 201,000 units in the first two months of the year, even as weakening domestic demand dragged down overall sales by about 36 per cent to 400,241 units over the same period.