BYD international sales surge 65% as oil crisis drives global EV demand

Thursday 02 April 2026 - 12:50

By: Dakir Madiha

BYD international sales surge 65% as oil crisis drives global EV demand

BYD, the world's largest electric vehicle maker, reported international sales of 120,083 vehicles in March, a 65 percent increase from the prior year, as oil prices inflated by the Iran conflict push consumers worldwide toward electric cars. The strong export figures come even as BYD's total domestic sales continue to decline year-on-year, highlighting a strategic pivot toward international markets that is reshaping the company's growth model.

The closure of the Strait of Hormuz following the American-Israeli military campaign against Iran has strangled roughly 20 percent of global oil trade, pushing Brent above $100 per barrel and West Texas Intermediate beyond $102 per barrel. According to Bloomberg, an average of just six vessels per day transited the strait in March, compared with around 135 under normal conditions. CNBC reported that oil industry executives and analysts warn prices could climb further if the strait is not reopened within weeks.

The fuel price surge has made electric vehicles substantially more economical. Running a petrol car now costs two to four times more per kilometer than an equivalent electric vehicle on many markets, according to analyses cited by industry observers. Bernstein analysts noted that Chinese EV makers, particularly BYD and Geely, are best positioned to benefit, with BYD seen as well placed to capitalize on higher-margin overseas EV sales through its affordable model lineup.

BYD sold 300,222 new energy vehicles in March in total, up nearly 58 percent from February but down approximately 20 percent year-on-year, marking the seventh consecutive month of annual decline in the domestic market. The company exported 321,165 vehicles in the first quarter. At an analyst meeting on March 30, management raised its full-year international sales target to 1.5 million units from 1.3 million, Bloomberg reported, adding that international markets could eventually account for half of total sales.

The strength of exports extends beyond BYD. China's economy had a better-than-expected start to 2026, with industrial output rising 6.3 percent over the January-February period and retail sales growing 2.8 percent, according to data from the National Bureau of Statistics. China Minsheng Bank chief economist Wen Bin estimated first-quarter GDP growth at around 5 percent, in line with Beijing's annual target of 4.5 to 5 percent. First-quarter GDP figures are due on April 17.

Chinese officials and state media have pushed back against what economists at the Peterson Institute have described as an impending "China Shock 2.0" tied to surging Chinese exports. Beijing has framed the issue differently, with Xinhua describing protectionism and unilateralism as the real threats to global growth, and the foreign ministry urging trading partners to step back from what it called the wrong path of protectionism.