Rising Gas Prices Drive Record EV Sales Across Asia

When gas prices started climbing, car buyers in Manila didn't complain. They switched to electric.

A BYD dealership in the Philippine capital just booked an entire month's worth of sales in only 14 days. "Clients are replacing units in favor of EVs because of the oil price hikes," says salesman Dominique Poh.

The rush isn't limited to one brand or country. About 1,100 miles away, a VinFast dealership had to hire extra staff after showroom visits quadrupled since tensions in the Middle East escalated.

Lai The Manh Linh traded his gas-powered Toyota for a new VinFast electric car. His reason was simple: "Switching to EV will help us significantly save money."

BYD, the Chinese automaker that stopped making gas-only cars in 2022, is now the world's largest EV maker. The company sold over 4.6 million electric and plug-in hybrid vehicles last year, surpassing Ford in global sales for the first time.

The shift comes at a critical moment. About 40% of oil imported to Asia passes through the Strait of Hormuz, where current tensions have pushed prices higher.

The Ripple Effect

The electric vehicle boom is doing more than saving drivers money at the pump. Global EV adoption avoided 1.7 million barrels of oil consumption per day last year, roughly 70% of what Iran exports through the contested strait.

Southeast Asian countries are responding with policy changes. Laos is cutting EV registration and service fees while raising them on comparable gas cars.

Thailand's automotive industry spokesman Surapong Paisitpatnapong admits they underestimated demand. "We were previously less upbeat about EV demand in 2026," he says. "If oil prices stay at current levels or rise further, we expect a significant increase."

The trend is spreading beyond Asia. In the United States, shopping data from Edmunds showed consideration for electric vehicles jumped more than 20% in the first week of March alone, with gas prices approaching $4 per gallon nationally.

China is doubling down on the transition. BYD now offers free charging for 18 months on select models, aiming to make the switch from gas even more attractive.

What started as a response to rising fuel costs is becoming a lasting shift toward cleaner transportation across multiple continents.