BYD and VinFast See Sales Surge as Oil Prices Spike Following Iran Conflict
Rising crude oil prices, triggered by tensions in the Persian Gulf, are driving a significant increase in demand for electric vehicles (EVs) across Asia, benefiting automakers like China’s BYD and Vietnam’s VinFast. Consumers are increasingly turning to EVs as a way to mitigate the financial impact of higher fuel costs.
Demand Soars Across Asia
Dealerships across the region are reporting substantial increases in showroom traffic and sales. In Manila, Philippines, a BYD dealership reportedly booked a month’s worth of orders in just two weeks in early March 2026, according to Bloomberg. “Clients are replacing units in favor of EVs because of the oil price hikes,” explained Dominique Poh, a salesperson at the dealership.
The surge in demand isn’t limited to the Philippines. A VinFast dealership in Hanoi, Vietnam, approximately 1,100 miles away, was compelled to hire additional sales staff after showroom visits quadrupled following the start of the conflict. One customer, Lai The Manh Linh, traded in a gasoline-powered Toyota Vios for a VinFast 5, stating, “Switching to EV will help us significantly save money.”
China Poised to Benefit
China, as a leading EV manufacturer, is expected to benefit significantly from this trend. China’s exports of electric and plug-in hybrid cars doubled in the first two months of 2026 compared to the same period last year, according to Bloomberg.
Global Impact of EV Adoption
A recent analysis by UK-based Ember found that global EV adoption helped avoid 1.7 million barrels per day of oil consumption in the previous year, equivalent to approximately 70% of Iran’s daily exports through the Strait of Hormuz. This highlights the potential of EVs to reduce reliance on fossil fuels and mitigate the impact of geopolitical instability on oil markets.
Government Incentives and Market Dynamics
Although rising oil prices are a primary driver of EV demand, government policies also play a role. In Thailand, despite the reduction of government subsidies for EVs, demand remains strong due to the increased cost of gasoline. Surapong Paisitpatnapong, spokesman for the Association of Thai Automotive Industries Federation, noted that if oil prices remain high, demand for EVs is expected to increase further.
BYD’s Position in the EV Market
BYD, which ceased production of internal combustion engine vehicles in 2022, has emerged as the world’s largest EV maker. The company sold over 4.6 million electric and plug-in hybrid vehicles in 2025, surpassing Ford in global sales. While sales growth had slowed recently, the current oil price surge is providing a renewed boost to demand.
Looking Ahead
The current situation underscores the growing economic viability of electric vehicles. As geopolitical tensions continue to impact oil prices, the transition to EVs is likely to accelerate, creating both opportunities and challenges for the automotive industry and policymakers alike.