\n But the turmoil couldn\u2019t have come at a better time for China\u2019s EV industry. While China manufactures and exports more electric cars than any other nation, its carmakers face fierce price competition and slowing growth at home. Chinese brands are under increasing pressure<\/a> to find other markets.\n <\/p>\n \n Now, as Chinese EVs are getting cheaper, gasoline is getting more expensive. That combination will likely turbocharge the industry\u2019s global expansion, analysts said, particularly among Asian nations bearing the brunt of the fuel shortage.\n <\/p>\n \n \u201cThere\u2019s potential for Chinese brands to make a ton of inroads into Asia on the backs of higher petrol costs,\u201d said Tu Le, managing director at Sino Auto Insights, a car-focused consultancy. \u201cI would look for them to take full advantage of that.\u201d\n <\/p>\n \n Despite growing investment in renewable energy in Asia, the three-week long conflict in the Middle East has illuminated the region\u2019s continued reliance on oil imports. About 60% of Asia\u2019s crude supply comes from the Middle East via the Strait of Hormuz, where Iran has severely restricted the flow of cargo.<\/a>\n <\/p>\n \n In a recent report, Ember, an energy think tank, called EVs \u201cthe largest lever to cut import bills,\u201d and estimated that the use of EVs last year curbed global crude consumption by 1.7 million barrels per day \u2013 about 70% of Iran\u2019s exports in 2025.\n <\/p>\n \n Similar to how Russia\u2019s invasion of Ukraine drove renewable energy investment in Europe, analysts said the current oil crisis could be another turning point for the clean energy industry in Asia.\n <\/p>\n \n \u201cWhen it\u2019s one price spike in a low inflation environment, people can write it off,\u201d said Lauri Myllyvirta, lead analyst and co-founder of the Centre for Research on Energy and Clean Air. \u201cWhen there\u2019s another, it could be a \u2018fool me twice\u2019 moment that drives home the fact that prices are volatile and driving a petrol vehicle just keeps you exposed to them.\u201d\n <\/p>\n \n In China, which gets more than 40% of its oil from the Middle East, a shift toward renewable energy has paid off. With the world\u2019s largest stockpile of oil reserves, and as its biggest generator of wind and solar power<\/a>, China is better insulated from the energy crisis than other Asian nations.\n <\/p>\n \n Myllyvirta estimates that the spread of EVs in China, which account for about 50% of new car sales and about 12% of all registered vehicles, cut the country\u2019s oil consumption by nearly 10% last year.\n <\/p>\n \n \u201cFrom China\u2019s perspective, this scenario is exactly what has been at the back of their minds when they have been pursuing their energy security strategy,\u201d he said.\n <\/p>\n \n Zhu Zhaoyi, executive director of the Institute of Middle East Studies at Peking University HSBC Business School, said the oil crisis could accelerate China\u2019s current clean-energy ambitions \u2013 specifically, reaching peak emissions by 2030 and carbon neutrality by 2060.<\/a>\n <\/p>\n \n \u201cChina\u2019s leadership has seen this movie before. Every time there\u2019s instability in the Middle East, it reinforces the same lesson: depending on imported fossil fuels is not just bad for the environment, it\u2019s a national security problem,\u201d Zhu said.\n <\/p>\n \n The state support that helped China become the global leader in affordable EVs has also created a cutthroat landscape for its homegrown carmakers, many of which are now struggling to survive in an oversupplied market.\n <\/p>\n \n Consulting firm AlixPartners estimates that only about 15 out of 129 Chinese EV brands in the market during 2024 will be financially viable in 2030. Analysts expect domestic demand will slow further as the Chinese government phases out subsides supporting EV adoption.\n <\/p>\n \n The recent oil price spike could give carmakers a much-needed boost at home, but they\u2019ll still need foreign markets to absorb excess supply.\n <\/p>\n \n \u201cEven if the oil price increase can help to further enlarge the cake of EVs in China, it won\u2019t be like double the size,\u201d said Yichao Zhang, an automotive consultant with AlixPartners. \u201cI don\u2019t think it can solve the overcapacity issue immediately.\u201d\n <\/p>\n \n That overcapacity is unlikely to benefit consumers in the US, where steep tariffs have virtually locked Chinese EVs out of the market to protect local automakers including market leader Tesla. Earlier this year, US President Donald Trump seemed ready to welcome <\/a>Chinese EV brands \u2013 but only if they build plants in the country.\n <\/p>\n![\"Electric](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/03\/gettyimages-2244755674.jpg\")
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