BUSINESS

Rising Fuel Prices Could Lift China’s EV Sales, Industry Body Says

Published: Mar. 24, 2026 5:06 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

A gas station at Shijiazhuang, Hebei. Photo: VCG

A surge in global oil prices triggered by the U.S.-Iran war is raising fuel costs for Chinese drivers and could renew momentum for electric-vehicle (EV) sales, after a policy-driven slowdown left the sector on weaker footing at the start of the year.

China’s passenger-car market had shown signs of tilting toward gasoline vehicles in the first two months of 2026, as subsidies were scaled back and tax breaks for new-energy vehicles became less generous. But the jump in oil prices is now changing the calculus for consumers, potentially lifting EV demand.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Rising global oil prices from the U.S.-Iran war have increased fuel costs in China and may boost EV and hybrid demand.
In early 2026, gasoline vehicles outsold EVs as NEV subsidies declined, with NEV market share dropping to 38.6% in January and 44.9% in February.
The China Passenger Car Association estimates NEV penetration will rebound to 52.9% in March, led by rising auto fuel prices and hybrid vehicle launches.

AI generated, for reference only