Rising Fuel Prices Could Lift China’s EV Sales, Industry Body Says

A surge in global oil prices triggered by the U.S.-Iran war is raising fuel costs for Chinese drivers and could renew momentum for electric-vehicle (EV) sales, after a policy-driven slowdown left the sector on weaker footing at the start of the year.

China’s passenger-car market had shown signs of tilting toward gasoline vehicles in the first two months of 2026, as subsidies were scaled back and tax breaks for new-energy vehicles became less generous. But the jump in oil prices is now changing the calculus for consumers, potentially lifting EV demand.