EV Demand Surges Across Asia After Energy Shock Sends Consumers Into Panic Mode

One of the biggest takeaways in global energy markets this week is the growing fragmentation. Brent crude in Asia has surged to over $150 a barrel, with demand destruction already emerging, and China and India facing the greatest pressure given their heavy reliance on Gulf crude. Meanwhile, the Trump administration has moved to release barrels from the Strategic Petroleum Reserve to help cap WTI prices below triple digits, with US crude currently trading around $94 a barrel.

And now we have three oil markets: Asia (Oman oil at $167), Brent ($113) and US (WTI $97) https://t.co/uHmMD24E9G pic.twitter.com/41a4BhKOIA

— zerohedge (@zerohedge) March 19, 2026

The Iran-driven energy shock is hitting Asia the hardest so far because much of its crude and LNG is imported and shipped through the Strait of Hormuz.

Current status of the Hormuz chokepoint…

“The countries that are exposed to that supply disruption are not so much in Europe, or in the Americas, they’re actually really in the Asia region,” Michael Williamson of the United Nations Economic and Social Commission for Asia and the Pacific told AP News.

The energy shock across Asia has had cascading effects on economic activity throughout the region. One behavioral shift among those who can afford to move away from petrol-powered vehicles has been a surge in activity at Chinese EV maker BYD Motors.

Bloomberg reports that BYD dealerships in the Philippines have already logged a full month’s worth of orders in just two weeks as consumers react to the energy price shock and the cost of filling up gas tanks.

Vietnam’s VinFast automotive company has seen 4x showroom traffic and is selling about 80 EVs per week, about double 2025 levels, following the surge in energy prices. Across Thailand, New Zealand, and Southeast Asia, dealers report sales increases of 20% or more and even inventory shortages.

What’s key here is that a rapid surge in gasoline and diesel prices across Asia has accelerated EV adoption in recent weeks, and if the crisis persists, adoption rates are only set to increase in the weeks and months ahead.

“Higher oil prices always help the transition to electric vehicles,” said Albert Park, chief economist of the Asian Development Bank. “It creates economic incentives to accelerate the green transition.”

Bloomberg Intelligence analyst Joanna Chen noted that one headwind for the EV market has always been “affordability and charging.” She added, “Outside of China, the upfront price of EVs is still generally more expensive than gasoline cars.”

The energy price shock is a welcome sign for the auto industry around the world, which made a terrible bet on EVs over the last year, as increased demand can help offload inventory into fearful consumers who have been forewarned about what may be the largest energy shock to hit the modern economy.