The conflict in Iran has significantly influenced the global electric vehicle (EV) market. Chinese automakers have found opportunities across the developing world as soaring fuel prices encourage drivers to switch to EVs, despite lagging charging infrastructure. The blockade of the Strait of Hormuz disrupted shipping of about one-fifth of the world’s crude oil and liquified natural gas. Asia, followed by Africa, was the first to feel the impact.

This disruption accelerated a trend already gaining momentum in developing countries. In April, Chinese EV exports reached a record $9.4 billion, according to Ember’s analysis of Chinese customs data. Shipments increased to countries like Australia, Brazil, and regions such as Southeast Asia and East Africa. In May, China exported about 435,000 passenger EVs and plug-in hybrids, a significant rise from the previous year, stated by the Chinese Association of Automobile Manufacturers. As fuel prices climb, more drivers opt for EVs to save money, while governments in countries from Laos to Ethiopia push for electrification to reduce oil imports and fuel subsidy costs.

However, the rapid adoption of EVs is outpacing the development of charging networks. Governments and state-owned utilities in Africa are leading efforts to build these networks, a strategy analysts believe could benefit other emerging markets, including Asia, in transitioning from fossil fuels. According to Paul Gong, head of UBS bank’s China automotive industry research, a lack of sufficient charging infrastructure coupled with smaller EV fleets presents a “classic chicken-and-egg problem.” Government support for infrastructure at this stage could accelerate EV adoption.

Fuel Shock Drives EV Use in Asia and Africa

The surge in fuel prices has expanded global interest in EVs, particularly across Asia and Africa, where transportation is a significant household expense due to limited public transit, long commutes, and dependency on private vehicles. For instance, a study by Stellenbosch University reveals that transportation comprises nearly a fifth of household spending in South Africa.

Consequently, drivers are increasingly seeking alternatives to traditional fuel. In Southeast Asia, imports of Chinese EVs have spiked in Thailand, Laos, and the Philippines. Laos banned fuel-powered vehicle imports for the rest of 2026 to slash oil import costs and boost the EV transition. Africa saw a 130% increase in Chinese EV imports in 2025, as stated by the Chinese Commerce Ministry.

One in four newly sold cars globally last year were electric, according to the International Energy Agency (IEA). The agency expects global electric car sales to grow further, reaching 23 million in 2026, accounting for nearly 30% of all vehicles sold worldwide. Chinese automakers supplied 60% of electric cars worldwide. They have actively targeted Europe, Africa, and Latin America.

In Vietnam, automaker VinFast recorded stronger sales driven by demand from Southeast Asia, resulting in a 42% year-on-year increase in the company’s first-quarter revenue. Daily commuters like Nguyen Thien Bao, who uses his VinFast electric motorbike in Hanoi, benefit from reduced expenses amid rising fuel prices.

Challenges in Charging Infrastructure

While EV imports are booming, charging infrastructure development lags. In Thailand, there are approximately 4,600 public charging locations for over 424,000 battery EVs and plug-in hybrids, according to the Electric Vehicle Association of Thailand. The IEA states there are around 12,000 public chargers in Thailand.

Drivers like Chitsanupong Nuamnorm continue to rely on gasoline-fueled vehicles for longer trips. Similarly, Yutthana Samranwong in northern Thailand finds the process of booking public charging ports challenging.

In Malaysia, public fast chargers increased over 70% in 2025 following government incentives, including tax breaks for charging point operators meeting investment criteria. Indonesia has set up more than 4,500 public charging stations through its state-owned power utility PLN, while Ethiopia, having banned non-EV imports, estimates the need for over 1,170 stations to meet rising demand.

Africa’s Role in Building Charging Networks

African countries increasingly utilize state-owned utilities to construct EV charging networks, with public investment aimed at overcoming technical hurdles to EV adoption. Ndia Magadagela, CEO of the South African commercial EV leasing company Everlectric, mentions that utilities recognize electric mobility as a growing electricity demand source.

In Africa, South Africa accounts for the majority of the approximately 2,000 public EV charging stations. Kenya Power plans to establish 44 charging stations within the next year. However, challenges remain in building these networks as grid connections and maintenance are crucial issues in developing markets, says Chris Liu of technology research firm Omdia.

While companies like BYD expand ultrafast EV charging networks in regions like Europe, large Chinese automakers may lack incentives to develop networks outside China, Liu adds. State-owned utilities hold the potential to play a significant role in charging infrastructure development due to their ties with national grid planning, electricity pricing, and distribution capacity.