Key facts
- EV sales have surged across Asia due to higher fuel prices stemming from the U.S.-Iran conflict.
- Australia, India, South Korea, and Vietnam have seen EV sales double.
- Southeast Asian EV sales increased by 62% between March and June.
- China's EV market is experiencing a slump due to the rollback of government subsidies.
- Used EV prices in Australia have risen significantly.
The ongoing conflict between the U.S. and Iran has significantly boosted demand for electric vehicles (EVs) across Asia, as consumers seek alternatives to volatile fossil fuel prices. Countries like Australia, India, South Korea, and Vietnam have seen their EV sales double since the conflict began, with Southeast Asia experiencing a 62% jump in sales between March and June, according to the International Energy Agency.
This surge is accelerating a trend of EV adoption in emerging markets, spurred by consecutive energy shocks, including the war in Ukraine. Analysts predict this shift towards EVs could be permanent in many countries.
In Australia, the demand for both new and used EVs has led to price increases of 10% to 20% for second-hand vehicles, with dealerships struggling to keep up with inquiries and sales. Japan's EV sales nearly tripled year-on-year, while South Korea saw a 172% surge in domestic purchases.
However, the global EV market faces headwinds from China, the world's largest EV market. Sales there have slumped following the rollback of government subsidies, despite a reported 82.6% month-on-month increase in March. U.S. EV sales also saw a year-over-year decrease, though they increased from February levels.