Soaring oil prices drive EV sales surge, with South Korea up 2.4-fold

By Seo Ji-yeon, The Herald Business

Surging international oil prices driven by the Middle East energy crisis are accelerating electric vehicle adoption across major markets, with consumers increasingly factoring fuel costs into their vehicle purchases.

The Nikkei reported Monday, citing data from automotive industry analyst S&P Global Mobility, that 37 of 150 countries tracked recorded all-time monthly highs in EV sales in either March or April.

According to the data, 28 countries set monthly sales records in March and nine did so in April.

South Korea posted the most striking gains. The country, which relies on the Middle East for roughly 70 percent of its crude oil imports, saw EV sales in March and April jump 2.4 times compared with the same period last year.

Japan recorded a 50 percent year-on-year increase in EV sales over the same two months. Southeast Asia and the EU each posted 40 percent gains, reflecting broad demand growth driven by elevated fuel prices.

The United States moved in the opposite direction. The lingering effects of the EV subsidy elimination last September pushed American EV sales down 20 percent year-on-year in March and April.

Oil prices have spiked in recent months as geopolitical risks in the Middle East intensified — including the US-Iran conflict, fears of a Strait of Hormuz blockade and the potential spread of fighting on the Lebanon front. Brent crude has at times exceeded $97 a barrel, remaining elevated.

The Nikkei drew parallels to the oil shocks of the 1970s, noting that the surge in fuel prices at the time eroded demand for fuel-inefficient American large cars and gave Japanese automakers — known for their fuel efficiency — a springboard to rapid global growth. The paper suggested the current crisis could play a similar role for electric vehicles.

"If high oil prices raise consumer interest in and understanding of electric vehicles, the trend of expanding EV market share could continue even after the Middle East situation stabilizes," the Nikkei said.

Some market analysts argue the current oil price shock could do more than temporarily lift EV sales — it may serve as a catalyst accelerating the broader shift to electrification. With the economic case for EVs back in the spotlight, global automakers are more likely to double down on their electrification strategies.