Asia’s electric vehicle makers like BYD and VinFast are witnessing explosive sales growth as the ongoing conflict in Iran triggers a severe oil shock, sending fuel prices soaring across the region and accelerating the shift toward electric mobility.
The U.S.-Israeli war with Iran, which escalated in late February 2026 with strikes disrupting key oil infrastructure and effectively closing the Strait of Hormuz, has caused global crude oil prices to surge dramatically. Brent crude has climbed from around $70 per barrel pre-conflict to levels hovering near or above $100 per barrel in March, with peaks exceeding $120 earlier in the month. This has translated into sharp gasoline and diesel price hikes in Asia, where much of the region’s oil imports pass through the vulnerable Hormuz chokepoint.
In Manila’s financial district, BYD dealership salesman Matthew Dominique Poh reports unprecedented demand. “Clients are replacing units in favor of EVs because of the oil price hikes,” Poh said. He’s observed a full month’s worth of orders packed into just the past two weeks, as drivers seek relief from escalating pump prices amid the Philippines’ historic fuel surges—some stations seeing increases of up to PHP 24 (~$0.40–$0.55) per liter in a single week.
The trend extends beyond the Philippines. In Hanoi, Vietnam, VinFast showrooms have quadrupled in customer traffic since the conflict intensified. Sales staff have been urgently hired to handle the influx, with one dealer reporting 250 EVs sold in just three weeks—roughly double the previous year’s average pace for the period. VinFast has capitalized on the momentum by launching targeted promotions, including a 3% discount on electric vehicles and 5% on electric scooters for customers switching from gasoline models, framed as a direct response to “volatility in global fuel prices.
“These anecdotal surges align with broader market signals. Early indicators suggest Asian EV makers are reaping significant benefits from the oil price spike, even as official March sales figures remain pending. The economic incentive is clear: while gasoline vehicle owners face multiplied fuel costs, EV drivers remain largely insulated, with electricity prices rising far more modestly. Analyses indicate that sustained high oil prices (above $100/barrel) could hit internal combustion engine drivers five times harder than EV owners in comparable scenarios.
The Iran conflict has amplified an already accelerating EV transition in Southeast Asia and beyond. Countries like the Philippines, Vietnam, Indonesia, and India—highly dependent on imported energy—are seeing consumers prioritize long-term savings and energy security. Governments and analysts note that rapid EV adoption in Asia had already offset substantial oil demand in recent years; globally, EVs avoided consumption equivalent to about 70% of Iran’s 2025 daily exports.
As the war shows no immediate signs of resolution and fuel volatility persists, the shift to electric vehicles appears to be gaining irreversible momentum. For BYD and VinFast, the oil shock has turned geopolitical crisis into a powerful tailwind, potentially reshaping Asia’s automotive landscape for years to come. Dealers and manufacturers alike are bracing for continued high demand as consumers weigh the stark contrast between skyrocketing gas bills and the predictable economics of EVs.
