"To save 100 yuan on fuel costs, I bought a 200,000-yuan pure electric car."

Will the surge in raw material prices slow down the popularization of electric vehicles?

Oil prices have skyrocketed! Why not buy an electric vehicle that doesn’t require refueling?

With the outbreak of conflicts in the Middle East, oil prices have returned to the 9 yuan era, with 92-octane gasoline rising by 1.6–1.8 yuan per liter and 95-octane gasoline increasing by 1.69–1.9 yuan per liter. For a car with a 50-liter fuel tank, even using “cheap fuel” (92-octane gasoline) now costs an additional 80-90 yuan compared to before.

New energy vehicles have suddenly become incredibly appealing, and even the most resilient fuel vehicle market cannot withstand it. Relevant data shows that the search volume for electric vehicles on overseas car buying platforms has surged by 20%, while in core markets like Germany and the United States, online traffic for electric vehicles has skyrocketed by 40%.

Those who own gas guzzlers must be wishing for a car that can be charged right now.

No one is complaining about “electric dads” anymore

Every oil crisis drives a transformation in the automotive industry.

The oil crisis of the 1970s prompted BMW and Volkswagen to launch electric vehicle models, while fuel-efficient Japanese cars began to dominate the global market. In 2008, international crude oil prices exceeded 140 dollars per barrel, marking the “iPhone moment” for new energy vehicles—Tesla launched its first mass-produced model.

This time, the winds of change are blowing towards China’s new energy vehicles.

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Domestically, many people used to complain about the energy replenishment issues of electric vehicles, referring to them as “electric dads,” constantly worried about running out of power. In the past two years, the number of complaints has significantly decreased, largely due to the substantial improvement of charging stations and battery swap stations across various regions. According to the latest data from the National Energy Administration, as of the end of February 2026, the number of charging piles (guns) in the country has surpassed 21 million, a year-on-year increase of nearly 50%.

In terms of fast-charging technology, there are now claims that some chargers can “charge from 10% to 70% in 5 minutes” and “from 10% to 97% in 9 minutes.” Even if the real-time current of charging piles may not be ideal, many electric vehicles can now charge from 20% to 80% in twenty to thirty minutes under normal circumstances, allowing drivers to conveniently charge while taking breaks at highway service areas.

Against this backdrop, the number of new energy vehicles in the country continues to grow. By 2025, nearly half of the newly registered vehicles are expected to be new energy models. In the first two months of 2026, the electricity consumption of the electric charging and swapping service industry in China increased by 55.1%.

With rising oil prices and the uncertainty of the situation in the Middle East, purchasing a new energy vehicle that is easy to charge and has low electricity costs will almost certainly be the top choice for car buyers in 2026.

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In February of this year, in Australia, where the automotive industry heavily relies on imports, the sales of new cars from Chinese brands surpassed those of Japanese cars for the first time. After the new round of oil crisis erupted, sales of Chinese new energy vehicles surged in markets such as Australia, Thailand, Singapore, and Indonesia. While European and American car manufacturers slow down or even withdraw from their electrification strategies, Chinese new energy vehicles quickly seized this wave of demand.

The question now is, how long will this wave last?

Goldman Sachs released a report on March 20, stating that the Strait of Hormuz has become a “deadlock,” making it difficult for the war and oil crisis to end in the short term. Iran has emphasized that they are ready for a protracted conflict, “defending themselves at all costs.” All economies heavily reliant on imported oil must now accelerate their energy transitions.

For Chinese car consumers, if we calculate the oil-to-electricity ratio based on the number of new registered vehicles, they have already completed half of their “energy transition.” What they are considering now is which vehicle among the plethora of new energy vehicles, categorized by technology routes such as pure electric, range-extended, and plug-in hybrids, and by models such as microcars, sedans, SUVs, station wagons, off-road vehicles, and MPVs, is most suitable for them.

However, when we visit new energy vehicle showrooms or open car apps on our phones, we may find that the prices of these vehicles have increased.

Do we really want to spend an extra 100 yuan every time we refuel, or do we need to spend 200,000 yuan to buy a pure electric car?

The “wait-and-see party” is facing even more expensive new energy vehicles

First, let’s take a look at what Chinese consumers are buying recently.

For most Chinese people, cars are a significant consumer good; buying a car is not easy, and it is best to meet various needs such as commuting, family use, and travel in one go. Therefore, SUVs are the hottest models in the Chinese car market—high chassis, spacious interiors, and plenty of seating; with the rear seats folded down, they can also carry household items, appliances, or bicycles.

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Starting in 2025, various car manufacturers are launching mid-size and large SUVs with “532” dimensions (5 meters long, 3 meters wheelbase, 2 meters wide). Especially for families with two children, six-seat models have become increasingly competitive. According to “Caijing” magazine, the sales of six-seat SUV models from mainstream automotive brands were less than 200,000 in 2020, but are expected to reach 1 million by the end of 2025, a five-fold increase in just five years.

As cars have gotten larger, prices have naturally risen. For example, in December 2025, among the top ten best-selling mid-size and large SUVs, only one model, the BMW X5, is a purely gasoline vehicle; the rest are mostly in the 200,000 to 300,000 yuan range. The cheapest Leapmotor C16 is priced at around 150,000 yuan, but its monthly sales have never exceeded 10,000 in peak months, far behind those 200,000 to 300,000 yuan models. The pre-sale price of the AITO M6, announced on March 23, starts at 269,800 yuan and was sold out within 24 hours with 60,000 units ordered. This shows that Chinese consumers are not just looking at cost-performance ratios when buying mid-size and large SUVs.

In recent years, people believed that the “wait-and-see party” was the biggest beneficiary of the Chinese car market, waiting for prices to drop and for more luxurious models. However, starting in 2026, we might be facing even more expensive new energy vehicles. The new Xiaomi SU7, released on March 19, has a starting price that is 4,000 yuan higher than the original model. Previously, Chery’s Exeed ET5 high-spec version also increased by 5,000 yuan. Tesla’s increases are the most dramatic, with the domestic Model Y long-range version and performance version rising by 18,000 yuan and 20,000 yuan, respectively.

The conflict between the U.S. and Iran has not only driven up oil prices but has also caused the prices of many raw materials to soar. Aluminum is an important material for lightweight vehicles, with the Middle East accounting for nearly 10% of global aluminum supply; if the Strait of Hormuz is blocked, aluminum prices will skyrocket. After the outbreak of the war at the end of February, aluminum prices reached their highest level in nearly four years. According to some analysts of non-ferrous metals, the increased cost of aluminum for pure electric new energy vehicles is estimated to add around 760 yuan per vehicle.

And that’s not all. The price increase of lithium carbonate, a core raw material for batteries, is even more astonishing, soaring from 75,000 yuan per ton at the beginning of 2025 to 174,000 yuan at the beginning of 2026, an increase of over 130%. Meanwhile, due to the AI computing power race and the technological barriers of foreign chip manufacturers, the prices of automotive-grade storage chips have also doubled, with the highest increase reaching 300% in the past three months. Lei Jun recently revealed that the cost of materials for the new Xiaomi SU7 launched this year has increased by nearly 20,000 yuan.

The new Xiaomi SU7. (Image/Xiaomi official website)

In comparison, some mainstream fuel vehicles now appear exceptionally affordable.

Fuel vehicles priced between 150,000 and 200,000 yuan not only allow you to buy mid-size SUVs but also larger MPVs. Relatively speaking, the equivalent to new energy mid-size SUVs would be B-class sedans among traditional vehicles. These luxury cars can generally be purchased for just over 100,000 yuan, with top configurations costing around 150,000 yuan; with 200,000 to 300,000 yuan, one can easily choose from brands like BBA (Mercedes-Benz, BMW, Audi).

Calculating this way, buying a significantly discounted fuel vehicle saves tens of thousands or even over a hundred thousand yuan, which is more than enough to cover several years’ worth of fuel expenses, even at current high oil prices.

Of course, Chinese consumers don’t just buy cars to save money; factors like status, enjoyment, and safety are also very important. Otherwise, the ideal would never surpass the “half-price ideal.”

Cover image | Visual China Proofread | Yan Yan Layout | Xin Xin Operations | Shen Xiaoji