The war in Iran has driven petrol prices to record highs, spurring worldwide demand for electric vehicles and giving Chinese carmakers a major boost. As the world’s leading EV producer, China finds its brands blocked from the vast U.S. market by tariffs and security concerns.
However, surging orders from Asia, Europe, Latin America, and the Middle East are filling the gap, with recent Reuters reports highlighting the shift.
BYD, which surpassed Tesla in 2025 to become the global EV sales leader with over 3 million units, leads the charge. The company is building new plants in Hungary, Thailand, and Brazil to cope with export growth.
“We survive and are successful without the U.S. market today,” BYD executive vice president Stella Li told the BBC at the Beijing Auto Show.
Instead of chasing American buyers, BYD struggles to meet demand in places like the UK, Europe, and Brazil, where right-hand-drive models are gaining traction.
“Consumers feel the daily savings when oil prices increase. EVs help them save money every day,” Li said. “Actually, we are now suffering [insufficient] capacity. Our demand is much higher than what we can supply.”
BYD banks on its flash charging technology, which Li describes as a game-changer. It adds 400km of range in five minutes, easing fears over slow charging that hinder EV uptake in markets such as the UK.
The Beijing Auto Show, now the world’s biggest with over 1,400 vehicles on display, showcased China’s innovation drive. Xpeng unveiled a six-seat electric SUV and plans humanoid robots this year plus flying cars by 2027. Global giants like Volkswagen, BMW, and Audi are partnering with local firms such as Xpeng, CATL, and Huawei to stay competitive.
U.S. tariffs at 100 per cent and EU duties up to 38 per cent pose challenges, but BYD’s UK sales soared 200 per cent in early 2026. The firm excels beyond cars, dominating batteries, solar, and more.
“We are not just a car company. We produce one-third of global smartphone components, we are a leading player in battery storage, solar panels, buses, and trucks. So BYD is an ecosystem,” said Li.
At home, price wars have cut BYD’s sales for seven months, contrasting 156 per cent European growth. “History suggests not all will survive,” Li warned, citing past industry shake-outs.