The war in Iran reshapes the market, but charging infrastructure struggles to keep pace
Category: Business
The war in Iran has significantly transformed the global electric vehicle (EV) market, providing Chinese automakers with a substantial opportunity across developing nations as soaring fuel prices drive consumers toward electric alternatives. This shift comes at a time when the blockade of the Strait of Hormuz has disrupted shipping routes, affecting about a fifth of the world’s crude oil and liquefied natural gas, primarily impacting Asia before spreading to Africa.
In April 2026, global exports of Chinese EVs reached an impressive $9.4 billion, according to an analysis by the think tank Ember, based on Chinese customs data. This surge reflects a growing trend as consumers in various regions seek to mitigate rising fuel costs by switching to electric vehicles. In May 2026 alone, China exported approximately 435,000 passenger EVs and plug-in hybrids, more than double the amount from the previous year, as reported by the Chinese Association of Automobile Manufacturers.
Governments from Laos to Ethiopia are increasingly embracing electrification as a means to reduce oil imports and alleviate the financial burden of fuel subsidies. Laos, for example, has taken a bold step by banning the import of fuel-powered vehicles for the remainder of 2026, aiming to accelerate the transition to electric mobility. Meanwhile, Africa saw a remarkable 130% increase in the import of Chinese EVs in 2025, totaling around 44,000 vehicles compared to the previous year.
The conflict in Iran has accelerated an existing trend toward electrification in the developing world. As fuel prices rise, the motivation to adopt electric vehicles has intensified. In regions like Southeast Asia, the influx of Chinese EVs has been particularly pronounced, with countries like Thailand, Laos, and the Philippines witnessing substantial growth in imports.
Mark Wakefield, a consultant with AlixPartners, highlighted that transportation costs represent a major household expense in many developing regions, where limited public transit and long commutes increase reliance on private vehicles. In South Africa, for example, transportation accounts for nearly a fifth of household spending, according to a 2024 study by Stellenbosch University. As fuel prices continue to climb, global interest in EVs is expected to grow, with the International Energy Agency (IEA) projecting that one in four new cars sold worldwide in 2025 will be electric.
Chinese automakers have capitalized on this opportunity, supplying around 60% of electric cars sold globally, as noted by the IEA. Companies like Geely Auto are already planning to expand their overseas markets, with CEO Jerry Gan stating, "In the next five years, we will accelerate (our) overseas expansion." This expansion is evident in Vietnam, where the automaker VinFast reported a 42% year-on-year increase in revenue during the first quarter of 2026, driven largely by demand from Southeast Asia.
Nevertheless, the rapid growth in EV imports is not matched by a corresponding expansion in charging infrastructure, leading to concerns about the sustainability of this shift. In Thailand, for example, there are only about 4,600 public charging locations available to support more than 424,000 battery EVs and plug-in hybrids, resulting in a ratio of roughly one charger for every 92 vehicles. The IEA indicates that Thailand currently has around 12,000 public chargers in total, which is insufficient to meet the growing demand.
Drivers are increasingly facing challenges in accessing reliable charging stations. Yutthana Samranwong, a 54-year-old driver in Phitsanulok province, noted, "Booking online for public charging ports to keep my MG4 EV running is a gamble. It’s a bit of a headache." This sentiment echoes across the region, where some drivers are even contemplating the return to fuel-powered vehicles due to the strain on charging networks.
In Malaysia, the government has taken steps to address this issue, with public fast chargers increasing by more than 70% in 2025, spurred by incentives such as tax breaks for operators meeting specific investment criteria. Indonesia has also made progress, with its state-owned power utility PLN establishing over 4,500 public charging stations. By comparison, Ethiopia, which has banned non-EV imports, had only around a dozen charging stations as of mid-2025, highlighting the urgent need for infrastructure development as the demand for EVs rises.
State-owned utilities are increasingly stepping up to fill the gap in charging infrastructure. Ndia Magadagela, co-founder and CEO of Everlectric, a South African commercial EV leasing company, emphasized that utilities recognize electric mobility as a potential source of future electricity demand. In South Africa, the state-controlled utility Kenya Power plans to build 44 charging stations within the next year, demonstrating a commitment to support the growing EV market.
As the global demand for electric vehicles continues to rise, the need for adequate charging infrastructure becomes increasingly pressing. Chris Liu from the technology research and advisory group Omdia noted, "In developing markets, affordability can accelerate the shift, but the pace of adoption will still depend heavily on infrastructure, power reliability, and use case." Without sufficient charging networks, the expansion of electric vehicles may face serious obstacles.
As the situation evolves, it is uncertain whether developing countries can build the necessary infrastructure to support the burgeoning demand for electric vehicles. With the stakes high and the momentum building, the coming years will be decisive for the future of electric mobility in these regions. The global electric vehicle market is on the brink of a major transformation, but the path forward hinges on addressing the challenges of infrastructure development and ensuring that the transition to electric mobility is both sustainable and accessible.