EV demand accelerates in Asia Africa:One in ten cars in China is EV; 25% surge in E2W E3Ws in India

After the Iran war, due to the increase in prices of petrol, diesel and gas, the demand for electric vehicles (EVs) has rapidly increased in many countries. In most Asian countries, Latin America and Africa, EV sales surged by 79% in March this year compared to last year. In these countries, electric car sales increased by 48% in 2025. The Latin American country Costa Rica is a prime example of the rapid pace of electric vehicle business. In Costa Rica, electric vehicles accounted for 18% of all new car sales in the first three months of the year. This is three times higher than America, where Tesla started the modern electric car revolution 14 years ago with its Model-S. Ethiopia, Uruguay and several other countries are promoting electric vehicles to reduce their dependence on imported foreign oil, which is proving costly for their economies and foreign exchange reserves. According to the International Energy Agency, China has the highest sales of electric vehicles in Asia. In 2024, 1.1 crore (11 million) EVs were sold. This is approximately half of the total vehicles. In China, by April 2026, one in ten vehicles on the road was electric. In Asia’s economically emerging countries, electric vehicle sales recorded a 60% surge in 2024. Vietnam saw a 40% increase and Thailand saw more than 20 percent growth. Indonesia is also witnessing growth. Government concessions on EVs and China’s cheap vehicles have boosted business. In India, sales of two-wheeler and three-wheeler EVs increased by 15 to 25%. Costa Rica’s Member of Parliament Katia Cambronero has introduced a bill in the parliament to accelerate the construction of charging stations. Costa Rica’s President Rodrigo Chvez is likely to approve the bill. However, President Rodrigo and Cambronero are staunch political rivals. Costa Rica does not produce oil and most of its electricity is generated from hydropower. China’s cheap electric cars have established their dominance in the market Costa Rica promoted electric vehicles in 2018 by providing exemptions on taxes and duties. Eco-tourism is a major industry there. With rising oil prices, this policy seems appropriate. In 2023, after the arrival of cheap Chinese models, EV car sales increased. However, the situation in other poor countries is weak. Most large trucks run on diesel and cars on petrol. According to Costa Rica’s EV Association Asomove, three Chinese electric models are priced below ₹18-19 lakh . Here, per capita income is one-fourth of America’s. In a survey, 70% of members stated that they adopted EVs not from an environmental or health perspective but to save money. Promotional campaigns in several countries EV Association’s Executive Director Shilva Rojas promotes the benefits of electric vehicles. She conducts workshops to create an environment in favor of EVs in countries like Mexico, Colombia, Brazil, and Kenya. In Costa Rica, Toyota was previously the most popular brand. Now Chinese electric cars have captured the EV market here. More Focus on Transport Too Felipe Alonso of grocery chain Auto Mercado explains, we have reduced delivery costs by 5-10% through the use of electric vehicles. Private bus company Biusa has replaced its entire fleet of 60 buses with battery-powered buses. Electric models are $50,000 more expensive compared to diesel buses. However, the company will soon recover this by reducing fuel and maintenance expenses. Competition Among EV Brands No politician in Costa Rica wants to alienate EV owners. BYD, Geely, MG and dozens of other Chinese brands have rapidly captured the market here. Previously, this market was dominated by Japanese, American and European brands. Toyota was prominent among them. Now, electric vehicle models from Western companies including Tesla are rarely seen here.