Economic Watch: At world's largest auto show, rising fuel costs boost China's NEV opportunity-Xinhua

Economic Watch: At world's largest auto show, rising fuel costs boost China's NEV opportunity

Source: Xinhua

Editor: huaxia

2026-04-29 19:10:18

BEIJING, April 29 (Xinhua) -- Turmoil in the Middle East and the rising cost of filling a tank are giving drivers yet another reason to switch to Chinese new energy vehicles (NEVs), which are already all the rage with their competitive prices, chic designs and intelligent systems.

This shift is palpable at the world's biggest auto show, which is being held in Beijing. Sprawling across 380,000 square meters and with 1,451 vehicles on display, this year's Beijing International Automotive Exhibition is bigger in scale and arguably more electric in nature.

During the exhibition, much of the spotlight is on a daunting array of new NEV models rolled out by Chinese companies, including BYD's Formula S, Li Auto's L9 Livis and NIO's ES9. Joint ventures and luxury brands, which are speeding up electrification to stay relevant, are also displaying their EV models, from Volvo's EX90 and Volkswagen's ID.ERA 9X to Nissan's NX8.

Conversations at the exhibition are also drifting from horsepower and styling to fuel consumption, kilowatt-hours and charging speed. Many car dealers and would-be buyers said the appeal of electric vehicles is a practical response to rising daily costs.

"With the current political situation, particularly the conflicts involving America, Israel and Iran, oil and gas prices are rising sharply and are unlikely to fall anytime soon," said Jaroslaw Kochanowski, managing director of Polish automotive dealer NeoDrive, sitting behind the wheel of Zeekr's pure-electric sedan, the 001.

According to the International Energy Agency (IEA), the war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market.

"Under this situation, most people are looking for ways to save money. Many will be forced to find more affordable transportation solutions," Kochanowski told Xinhua. "In that sense, electric vehicles represent the next logical step."

Kochanowski noted that electric vehicles can ease people's anxiety over fuel shortages and offer a palpable sense of "energy independence." Although installing solar power equipment at home remains costly, the appeal of self-sufficiency is compelling, as households can generate their own electricity through rooftop solar panels and use it to charge electric vehicles, shielding themselves from fuel price volatility.

"After all, you can almost never produce your own gasoline," he added.

In China, the gasoline price rose by 3.8 percent year on year in March, a milder increase compared with many other regions in the world, thanks to the government's repeated efforts to tame price hikes. That said, many Chinese consumers still find EVs a favorable option due to the country's low electricity prices.

A Beijing resident surnamed Wang, who owns a NIO, told Xinhua that switching from a gasoline car to an EV has dramatically cut her commuting costs.

"The energy cost per kilometer has dropped by more than 90 percent. My EV uses 17 kWh of electricity per 100 kilometers, costing about 7 yuan (about 1 U.S. dollar)," she said. "My previous car consumed about 9.2 liters of fuel over the same distance, worth around 78 yuan."

With fuel prices remaining elevated, she added, choosing an electric vehicle for family use now feels like a far more rational decision.

Chinese EV makers' performance in the overseas markets also demonstrated the shift. Zeekr reported record vehicle exports in the first quarter of 2026. Its iconic pure-electric SUV, the Zeekr 7X, has found particular traction in Australia, where tight fuel supply and high petrol prices have sharpened consumer interest in alternatives. In that market, the model emerged as one of the popular premium medium SUVs from January to March.

At the national level, China's auto exports have also exceeded expectations since the outbreak of the Middle East conflict in late February. In March alone, shipments of NEVs reached 371,000 units, more than doubling from a year earlier.

"High oil prices are significantly amplifying the cost advantages of NEVs, providing a powerful boost to their adoption. As fuel expenses for conventional cars rise markedly, plug-in hybrids and fully electric models are increasingly demonstrating their lifecycle cost efficiency," said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).

According to Cui, supported by a mature industrial chain and strong cost competitiveness, China's NEV sector is gaining export appeal. "Overall, elevated oil prices are providing a clear tailwind for both domestic adoption and the international expansion of China's EV industry," said Cui.

A lower cost is not the only reason for buyers to favor Chinese NEVs. After years of growth, China's NEV industry has developed a fully integrated supply chain and achieved a combination of cost competitiveness and rapid innovation.

In 2025, domestic production and sales of NEVs both exceeded 16 million units, with NEVs accounting for over 50 percent of new car sales in the domestic market.

A young visitor named George from Hungary lingered at the booth of Xiaomi, examining its YU7 model with enthusiasm. He told Xinhua that rising fuel prices were not his primary motivation.

What interests him most is the driving performance, he said, reflecting a growing cohort of consumers who view Chinese EVs less as economical substitutes and more as technologically compelling products in their own right.

On the other hand, the economics of electrification remain uneven in areas without mature infrastructures. According to Kochanowski, the cost of using public charging infrastructure in Poland remains relatively high, narrowing the savings compared with gasoline vehicles.

In many regions of the world, the rollout of NEVs remains at an early stage, with infrastructure lagging behind demand. Public charging networks are often sparse, charger density remains low, and standards are fragmented. For many consumers, especially outside major cities, "range anxiety" remains a real concern, while long charging times and inconsistent charging experiences continue to weigh on adoption, explained Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association.

Sustained global demand for Chinese NEVs will depend less on short-term tailwinds but more on a shift in strategy, which involves moving beyond simple vehicle exports toward exporting entire industrial ecosystems, bringing battery and component suppliers overseas, building local supply chains, and establishing localized production, Lang said.