Fuel crunch driven by Iran war boosts China’s electric two-wheeler exports to South-east Asia
This underscores how regional energy vulnerabilities are accelerating the transition to electric mobility
Published Sun, May 3, 2026 · 11:00 AM
[BEIJING] Chinese exports of electric two-wheelers to South-east Asia surged in the first quarter of 2026 as rising fuel prices and shortages triggered by the Middle East war pushed consumers to seek alternatives.
The rapid shift underscores how regional energy vulnerabilities are accelerating the transition to electric mobility in motorcycle-dominated markets, creating a significant growth opportunity for Chinese manufacturers.
In the first three months of the year, the value of Chinese electric two-wheeler exports to Myanmar jumped 617.5 per cent year on year to 64.7 million yuan (S$12.1 million). Exports to Laos and Cambodia rose 25.7 per cent and 34.2 per cent to 43.5 million yuan and 38.2 million yuan, respectively.
The increase in Myanmar has been particularly pronounced due to tight fuel supplies. On Mar 7, the government introduced an odd-even licence plate rationing system for private cars and petrol-powered motorcycles, while exempting electric vehicles.
A newly added local dealer recently purchased 200 vehicles and quickly sold out, an executive at a Chinese electric two-wheeler manufacturer told Caixin on Apr 19 during the Canton Fair.
Similar demand trends are emerging in Laos and Cambodia. To ease pressure from rising fuel costs, the Lao government cut its fuel consumption tax on Mar 18 and said on Mar 20 that universities nationwide would reduce classes to three days a week.
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In Cambodia, prices for petrol, diesel and liquefied petroleum gas have risen 41.5 per cent, 84 per cent and 60 per cent, respectively, since the Middle East conflict began, Xinhua News Agency reported on Mar 26.
An executive at another Chinese manufacturer said the company rapidly expanded its dealership network in Laos and Cambodia during the first quarter.
Industry insiders said the actual scale of exports may be far higher than customs data suggest, as many Chinese companies ship knocked-down kits for local assembly to take advantage of tax incentives.
Uncertainty in the long term
While the fuel crisis has boosted short-term sales, the long-term trajectory for electric two-wheelers across much of the region remains uncertain.
A Mar 24 research report by Guotai Haitong Securities showed that about 15 million motorcycles were sold across nine South-east Asian countries in 2025, but the share of electric models remained low.
Electric motorcycle penetration reached about 10 per cent in Vietnam in 2023 and stayed in the single digits in Indonesia, Thailand, Malaysia and the Philippines.
A key obstacle is product technology, an executive at a leading Chinese electric two-wheeler company said. Lead-acid battery models are cheaper than petrol motorcycles but suffer from limited range and lower durability, while more advanced lithium-ion models remain too expensive for mass adoption.
Among South-east Asian countries, Vietnam has taken the clearest stance on electrification. The government issued an action plan in July 2022 targeting full electrification of all transport vehicles by 2050.
In Hanoi, which has nearly seven million petrol-powered motorcycles, the municipal council passed a resolution on Nov 26, 2025, to pilot a low-emission zone within Ring Road 1 starting in July 2026. The zone will restrict petrol motorcycles by time and area as part of a phased transition.
Chinese manufacturers are expanding their local production footprint to capitalise on the shift. Hong Kong-listed Yadea Group Holdings identified South-east Asia as a strategic priority in its 2025 annual report.
The company opened a production facility in Vietnam’s Bac Giang province in 2019 with an initial annual capacity of 200,000 units and formally launched a plant with capacity of one million units in Bac Ninh province in early 2026. However, overseas revenue accounted for less than 10 per cent of its total in 2025.
Rival manufacturer Tailg Group opened a plant in Hung Yen province in August 2024 with a designed annual capacity of 350,000 units. CAIXIN GLOBAL
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