Rising Oil Prices Boost Overseas EV Demand, with Europe and Southeast Asia Leading Adoption

Huatai Securities noted that recent Middle East tensions have driven up oil prices, highlighting the growing cost advantage of electric vehicles (EVs) over internal combustion engine (ICE) vehicles. Using a five-year total cost of ownership (TCO) model, the firm calculated the "oil-electric parity multiples" for the European, Southeast Asian, and U.S. markets and compared them with current actual multiples under prevailing oil prices (Brent crude at $99 per barrel as of March 18). The analysis reveals a tiered progression toward oil-electric parity: Europe leads, followed by Southeast Asia, then the United States. Against the backdrop of rising oil prices, Europe and Southeast Asia are poised to become key incremental markets driving overseas EV adoption. Huatai recommends focusing on leading EV manufacturers with strong sales in these regions and accelerated strategic footprints in Europe.