Rising Fuel Costs Are Accelerating China’s EV Transition, Lynk Executive Says
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Lynk 10 all-electric sports sedan. Photo: Lynk & Co.
Rising oil prices in China are driving a structural shift in the automotive market, with all-electric cars poised to capture a larger share as gasoline car sales plunge, according to an executive at Geely-backed upscale auto brand Lynk & Co.
This shift underscores how external geopolitical and economic shocks are reshaping consumer preferences in the world’s largest auto market, even as the broader domestic industry grapples with declining overall sales and a diminishing return on price cuts.
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- Rising oil prices from Middle East conflicts accelerate China's shift to EVs; Lynk & Co predicts pure electric cars will reach 50% market share.
- Gasoline car sales plunged 38.4% in April and 45% in early May, but NEV sales also declined as consumers adopt a wait-and-see attitude.
- Price wars fail to stimulate demand; product homogeneity shortens sales peaks, with market consolidation expected as top models dominate each segment.
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Who’s Who
- Lynk & Co.
- Lynk & Co. is a Geely-backed upscale auto brand. It sees rising oil prices driving a shift to all-electric cars. To capitalize, it released the pure-electric Lynk 10 sports sedan, aiming to boost its EV sales, currently 15% of total.
- Geely Auto Group
- Geely Auto Group is the parent company of Lynk & Co., an upscale auto brand. Senior Vice President Lin Jie stated that rising oil prices in China are shifting consumer preferences toward new-energy vehicles, though overall market demand remains sluggish amid price wars and product homogeneity. He predicts market consolidation where top models will dominate each segment.
- UBS Group AG
- In a recent analysis, Paul Gong, head of China auto research at UBS Group AG, noted that the simultaneous launch of large vehicles with similar layouts has shortened the peak sales window for new car models, leading to quicker sales declines after an initial peak.
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What Happened When
- March 2026：
- China's domestic gasoline prices have been hiked five times since March 2026 due to conflicts in the Middle East.
- April 2026：
- Sales of gasoline-powered passenger cars tumbled 38.4% year-on-year to 515,000 units, according to CAAM.
- May 1-24, 2026：
- Domestic gasoline car production reached 396,000 units, down 45% year-on-year, as reported by CPCA.
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