Southeast Asia's motorists are expected to accelerate a shift toward electric vehicles amid mounting concerns over fuel costs, as global oil prices surge amid the Middle East conflict.

As of early May 2026, Brent crude futures surged past $120 per barrel in Asian trading. Analysts said a prolonged Strait of Hormuz disruption will keep fuel costs elevated across Southeast Asia, which is a net energy-importing region. The squeeze at the pump is spurring households and businesses to cut reliance on combustion engines, deepening the shift toward cleaner transport.

"Electrifying the transport sector (will allow Southeast Asian nations) to be more independent and energy-secure," said Lam Pham, an analyst at Ember, a global energy think tank.

The transport sector in the Association of Southeast Asian Nations region is highly dependent on oil, with fossil fuels accounting for over 90 percent of the sector's energy needs, according to the ASEAN Center for Energy.

Pham said using more EVs will help ASEAN members reduce oil imports and mitigate the impact of energy price shock on local economies.

Adrianto Gani, head of the marketing and promotion department at the Indonesian Electric Vehicle Industry Association, expects more Indonesians to switch to EVs in the wake of the ongoing Middle East conflict and soaring oil prices.

Gani said EVs offer security to consumers as they would no longer have to rely on volatile fossil fuels.

As the US-Israel-Iran war enters its 10th week and oil prices continue to soar, motorists across ASEAN have been increasingly eyeing a shift to EVs.

In Vietnam, EV manufacturer VinFast reported that it sold 27,609 EVs in March, a 127 percent surge compared to the same month last year.

Philippine EV sales in March reached 6,148 units, or more than double the 3,054 units sold in February.

At the 47th Bangkok International Motor Show held from March 25 to April 5, carmakers from Asia and Europe used the event to introduce new EV technologies and innovations, according to a report filed by The Nation, a Thai online newspaper. BYD, China's biggest EV manufacturer, secured the highest number of bookings at 17,354 units.

The rush toward electric mobility dovetails with Southeast Asia's wider energy transition, where governments are juggling short-term fuel security with long-term climate pledges.

Policy support

Even prior to the start of the Middle East conflict in February, some governments in ASEAN have been offering subsidies and tax incentives and building charger stations to encourage a shift to EVs. The entry of Chinese EV brands in ASEAN has also bolstered sales of battery-powered vehicles in the region.

In its report on EVs released in December 2025, the think tank Ember said several ASEAN countries have among the highest EV sales penetration of any country in the world. Nearly 40 percent of Vietnam's new car sales in 2025 have been EVs. Likewise in Thailand, EVs accounted for 20 percent of new car sales while in Indonesia, EVs have made up 15 percent of new car sales.

But EVs' growing popularity in ASEAN is not just about climate commitments. Ember said the EV industry has also encouraged more foreign investments and created more jobs. In Indonesia, fiscal incentives have spurred foreign EV makers to build manufacturing facilities in the country. In Vietnam, the World Bank has estimated that the EV industry could create 6.5 million jobs by 2050.

Pham, the Ember energy analyst, said the EV industry will continue to thrive in Southeast Asia even if the Middle East crisis ends and oil prices go down. This is because ASEAN countries will continue to grow their EV sector to attract more investment and meet not only local demand but also push exports.

Policymakers will "continue to incentivize" to boost EV penetration, Pham said. But for most consumers, the soaring oil prices brought by the war serve as a reminder of how painful it is to be dependent on imported fossil fuel, he said.

Leonardus Jegho in Jakarta contributed to this story.

prime@chinadailyapac.com