What NEV sales boom tells us amid rising oil prices

A surge in new energy vehicle (NEV) sales amid climbing oil prices does more than highlight the benefits for consumers: lower running costs and a greener choice. It also delivers a fresh rebuttal to the so-called "overcapacity" narrative.

The recent conflict in the Middle East has tightened global oil supplies and sent fuel prices soaring. Unsurprisingly, more buyers are turning to NEVs -- a clear sign that the industry is responding to real-world needs.

In Australia, sales of electric and hybrid vehicles from two leading Chinese automakers have climbed sharply since the fuel crisis began, according to the Australian Broadcasting Corporation. Meanwhile, a BYD dealer in Manila received a month's worth of orders in just two weeks, Bloomberg said last week.

This is no short-term blip. The shift to NEVs is a long-term trend. According to energy think tank Ember, 39 countries now have an electric vehicle sales share above 10 percent, up from just four in 2019 -- evidence of rapid adoption, especially across emerging economies in Asia. And the International Energy Agency expects global demand to keep rising steeply.

China's competitive edge in the NEV sector has been hard-won through years of steady innovation and development. Heavy investment in research has paid off with breakthroughs in batteries and electric motors, helping to lower production costs.

In addition, China's efficient industrial and supply chains have boosted faster technological iteration and greater cost efficiency. It's no coincidence that China's sweeping green transformation has been underpinned by the success of its NEV industry.

In 2025, NEVs already accounted for over half of cars sold in China. And in the first two months of this year, its NEV exports surged 110 percent.

But China's NEV technologies and manufacturing capacity are not just domestic assets -- they are also global public goods. They help tackle energy challenges, advance the green transition, and give other countries and regions access to the tools they need for sustainable development.

True to its commitment to opening up, China has seen its NEV enterprises invest across multiple countries in recent years, creating local jobs and promoting NEV use. Cooperation with foreign partners has also deepened, including through joint ventures.

What the recent NEV sales boom shows is simple: forward-looking policies work better than protectionist walls -- for consumers and for the planet alike. In the NEV sector, as in the broader push for a green transition, win-win cooperation is not just nice to have. It is essential. ■