Electric vehicle (EV) sales across Asia have surged following the escalation of the U.S.-Iran conflict, which has pushed fuel prices higher, according to the International Energy Agency (IEA). This growth has outpaced that seen in Europe, with notable increases in countries such as Australia, India, South Korea, and Vietnam where sales have doubled since the conflict began.

In Southeast Asia, EV sales jumped 62% year-on-year between March and June 2026, led by Thailand, Vietnam, and Indonesia, the IEA reported. This regional boost was highlighted at the Bangkok International Motor Show in Thailand on March 23, where BYD electric cars were prominently displayed.

However, the overall Asian EV market faces challenges due to a slowdown in China, the world's largest EV market. Sales there have declined after Beijing reduced subsidies for electric vehicles.

This dynamic reflects a complex market environment where geopolitical tensions and policy changes are reshaping the electric vehicle landscape across Asia.

Sources