China’s EV and hybrid exports soar as Iran war spikes fuel prices

China’s exports of electric vehicles and hybrids surged to a record high in March as higher global fuel prices linked to the Iran war boosted consumer interest in alternative-energy cars.

Overseas shipments rose 140% from a year earlier to 349,000 units in March, according to data released on Thursday by the China Passenger Car Association (PCA).

BYD, the world’s largest EV maker, accounted for about one-third of total exports during the month, while Geely Automobile and Chery Automobile ranked as the second- and third-largest exporters, respectively.

The sharp increase came as rising fuel costs encouraged buyers, particularly across Asia, to turn to EVs and hybrids to reduce exposure to volatile gasoline prices.

The export rebound contrasts with continued weakness in China’s domestic auto market.

Shipments from Tesla’s Shanghai factory increased about 9% year-on-year in March, although its sales in China fell 24% in the same period.

BYD’s domestic sales also dropped more than 40%, underscoring softer demand at home.

Overall sales of EVs and hybrids in China fell 14% year-on-year to 848,000 units in March, marking a third straight monthly decline.

The first quarter also recorded the sector’s first contraction for that period since 2020, according to the PCA.