Demand for electric vehicles (EVs) is rising rapidly across the Asia-Pacific region as fuel prices surge following disruptions in the Strait of Hormuz, a key global oil transit route.
The disruption, linked to the ongoing US-Israeli war on Iran, has sharply reduced oil and gas shipments to Asia. The International Energy Agency described the situation as one of the most significant supply shocks on record.
Rising fuel costs are pushing consumers and businesses to shift towards EVs to lower operating expenses, supported by government incentives in several countries.
In Australia, the National Australia Bank reported a 100% increase in EV loans in March, with business enquiries rising 88%. Prime Minister Anthony Albanese said there are no plans to ban petrol vehicles but expressed confidence in EV adoption.
In Japan, higher fuel prices are encouraging EV adoption, supported by increased government subsidies. Automakers such as Toyota Motor, Nissan Motor and Tesla are expanding their EV offerings.
South Korea recorded more than double the number of EV and hybrid registrations in March compared to a year earlier, driven by rising fuel prices and incentives.
In New Zealand, over 1,000 EVs were registered in a single week in March, the highest since late 2023, reflecting growing consumer interest.
Chinese automakers, led by BYD, are benefiting from the surge in demand, expanding their presence across global markets.
Analysts say the pace of EV adoption will depend on how long the supply disruption continues, along with government policies and infrastructure development.
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