Rising oil uncertainty could boost Chinese EV expansion abroad

Electric vehicles charge as gasolince and diesel prices are displayed at a gas station in Rosedale, Md., April 2. AP-Yonhap

Turmoil around the Strait of Hormuz had injected fresh uncertainty into global oil prices, drawing comparisons to the 1970s oil crisis when rising fuel costs pushed consumers toward more fuel-efficient Japanese cars.

This time, analysts say, a similar dynamic could accelerate the global shift to electric vehicles, potentially giving Chinese automakers — already dominant in electric vehicle (EV) production — an edge in overseas markets, including Korea.

According to data cited by Chinese brokerage Citic Securities from MarkLines, a Japanese company specializing in automotive industry data and analysis, Japanese carmakers’ share of the U.S. market rose to 20 percent in 1980 from just 4 percent in 1972.

As Chinese electric and hybrid vehicle makers expand into the global market, many are positioning themselves to challenge the long-standing dominance of Japanese brands by offering lower running costs and strong price competitiveness. Advances in technologies such as BYD’s DM-i 5.0 hybrid system have already made Chinese models more cost-competitive than their Japanese counterparts, according to a Citic research note.

“If the crude oil price continues to stay at a high place, the share of fully electric vehicles and hybrid models with low fuel consumption is expected to increase globally,” according to the research note.

“Chinese automakers’ technological advantages in battery electric vehicles and plug-in hybrid electric vehicles are likely to translate more rapidly into global market share gains.”

China has retained its leading position in EV exports, and manufacturers in the country are working hard to find new markets amid fierce domestic competition.

China’s EV exports totaled over 7 million units in 2025, its third year of being the world's top exporter, according to data by China Association of Automobile Manufacturers.

In Korea, which is at the forefront of the energy crunch due to its high reliance on imported oil, BYD’s sales in March surged to 1,664 units from only 10 during the same period the year before. The company first started to report its sales in Korea after launching in January 2025, according to Yonhap.

BYD vehicles in the production line in Camacari, Brazil / Reuters-Yonhap

Although BYD Korea has not seen a sudden surge or dramatic change in figures despite the recent rise in fuel prices, an official from the company said interest from consumers in EVs has been steadily increasing since the launch of the Dolphin, its compact electric hatchback, in February, with showroom visits and test-drive bookings also rising.

“The recent increase in interest in electric vehicles amid the energy crisis … reflects a broader strengthening of growth across the EV market as a whole,” a BYD Korea official said.

While relatively few Chinese brands have fully entered the Korean market so far, the recent energy crisis is a sign that market conditions are maturing, allowing a diverse range of global brands to introduce high-quality, eco-friendly vehicles, according to the official.

BYD Korea has set a target of over 10,000 vehicle sales here this year, aiming to expand by 64 percent from 2025. The company is also in discussion with its headquarters for the expansion of existing model lineups, according to the company official.

Another Chinese EV maker, Zeeker, is planning to debut its 7X premium electric SUV in Korea this year. According to the company, “The transition to electrification is a global trend."

While Chinese EVs have gained ground in markets such as Europe and Southeast Asia, only a few brands have established a presence in Korea, partly due to strong competition from established automakers such as Kia and Hyundai.

Despite increasing efforts by Chinese EV manufacturers to expand in Korea, analysts note that underdeveloped charging infrastructure in overseas markets could make expansion more challenging and time-consuming.

Currently, the total number of EV chargers nationwide stands at 508,356, while the number of registered electric vehicles in Korea had reached 939,756 as of February, putting the charger-to-vehicle ratio at around 1:1.9, according to local media.

“However, plug-in hybrid electric vehicles, which can run on both fuel and electricity, are expected to achieve faster sales growth in overseas markets, supported by their leading fuel efficiency in charge-depleting mode,” according to a research note from Citic.

Alice Li is a reporter with the South China Morning Post. She is currently based in Seoul, writing for both The Korea Times and the South China Morning Post under an exchange program.