China's electric truck exports to Asia spike as Iran war fuels higher oil costs

China's electric truck exports to Asia have surged, with shipments more than doubling in the four months following the start of the Iran war. Higher fuel costs driven by the conflict have accelerated regional electrification, particularly in South and Southeast Asia, which are heavily reliant on Middle Eastern oil. This trend could significantly reduce diesel consumption and carbon emissions if sustained, mirroring China's own rapid adoption of e-trucks.

In the four months after the US and Israel launched the war on February 28, China's exports of heavy e-trucks more than doubled from the same period last year to 16,823 vehicles. Half went to South and Southeast Asia, with shipments to South Asia up more than fivefold and to Southeast Asia nearly tripling.

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The war has opened the door to these new markets.

South and Southeast Asia are particularly dependent on the Middle East for oil. Iran's closure of the Strait of Hormuz has triggered some of the biggest jumps in diesel prices, according to GlobalPetrolPrices.com, creating an opening for China, the world's largest e-truck maker. Diesel prices are up 48% in Sri Lanka since the start of the war and 57% in the Philippines, according to GlobalPetrolPrices.com, while the fuel is 15% higher in China, government data shows.

"The war has opened the door to these new markets," said Zhaoting Yue, vice president of international marketing at Sany, the world's biggest maker of electric heavy trucks. Sany previously focused on Europe but is pivoting to Southeast Asia and developing cheaper models. Yue told Reuters that before oil prices rose, buyers in these countries might have needed 28 months to recoup their investment in an electric heavy truck, but now it takes only 18 months. Sany expects the war to sustain rapid growth for at least the next year, particularly in Asia, Africa, and Latin America.

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Before oil prices rose, buyers in these countries might have needed 28 months to recoup their investment in an electric heavy truck. Now, it takes only 18 months.