by GE Cheng

When LI Jia, 39, collected his black BYD Shark 6 from a Sydney dealership, his phone buzzed: petrol had climbed past A$2.5 per liter, up 60% in three weeks.

"Fuel prices are unbearable," he said. "Good thing I bought early."

New orders now take at least two months. The plug-in hybrid cost A$57,900, plus more than A$10,000 in add-ons. "At this price, it's hard to beat," LI said. "I don't even want to drive my petrol car anymore."

Across Australia, a fuel-price shock is speeding up an existing shift, as consumers move toward EVs — increasingly Chinese ones.

At the same Sydney store, test drives are fully booked into next month. In Melbourne, salesperson WANG Bo says his outlet is selling more than 10 EVs a day, with BYD sales up about 50% year on year. Best-sellers include the Sealion 7 and ATTO 2, alongside plug-in hybrids such as the Sealion 6, Sealion 8 and Shark 6.

"Most customers were already considering EVs," Wang said. "High fuel prices made the decision."

The immediate trigger is far from Australia. Disruptions to the Strait of Hormuz, which carries roughly 20% of global oil shipments, have pushed up prices. The International Energy Agency has warned the disruption could significantly tighten global supply.

For a fuel-importing economy, the impact has been swift, feeding quickly into household budgets and strengthening the case for electrification. Even as prices have eased from their peak, demand has held.

Wang said pickups used to be dominated by Japanese and American brands, but Chinese models are now being seriously considered and increasingly accepted.

For early adopters like Li, the appeal is partly economic — he expects to save A$100–200 a month — but not only. Applications for EV loans at the National Australia Bank rose 100% in March, underscoring a broader shift as households and businesses look to control costs.

Chinese brands are benefiting. Data from the Federal Chamber of Automotive Industries (FCAI) show that in February 2026, Chinese cars sold 22,400 units in Australia, about 25% of the market — overtaking Japan as the largest monthly source of new vehicles for the first time in decades. BYD ranked first among EV brands, with Zeekr, MG, Geely, and Chery's Omoda and Jaecoo also in the top ten.

The shift is not limited to Australia.

In Brazil, the BYD Dolphin Mini has topped retail sales for two consecutive months. BYD sold 112,900 vehicles there in 2025, despite prices far above those in China; a Seal, which starts at about 170,000 yuan domestically, can exceed 400,000 yuan in Brazil. Growth has also been rapid in Europe, including markets such as Spain and Italy.

Export prices have already surpassed $30,000 per vehicle, industry observers say — reflecting a move beyond pure price competition.

That pricing power rests on an integrated industrial base: strong battery manufacturing, dense supply chains and fast product iteration. Models are localized quickly — from navigation to multi-language interfaces — while aligning with local use cases, such as pickups in Australia or compact cars in Brazil.

Export volumes are rising. China shipped 1.352 million vehicles in January–February 2026, up more than 40% year on year, with new energy vehicles accounting for over 40%.

Yet selling cars is only the first step. Building factories, supply chains and organizations abroad is more complex.

DONG Xiucheng, of the University of International Business and Economics, said companies must tailor strategies by market — relocating production in high-barrier regions and accelerating localization in emerging economies. Projects overseas tend to be costlier and slower; factories that take 3–12 months to build in China can take 10–24 months abroad, often amid regulatory scrutiny and labor frictions.

XIE Tian, of Boston Consulting Group, said the industry is moving from scale to execution. "It's no longer just about selling cars," he said. "It's about building brands, partnerships and ecosystems."

With domestic demand under pressure, Chinese automakers are leaning on overseas growth. BYD has set a 1.5 million-unit export target, while Geely is aiming for 750,000.

The current oil shock has opened a window — reminiscent of the 1970s, when fuel-efficient Japanese cars gained global share. Whether Chinese EV makers can turn this moment into a durable global foothold remains uncertain.

Back in Sydney, Li merges into traffic, leaving a queue at the petrol station behind. The numbers on the price board keep ticking up.

For him, they no longer matter.