(Yicai) March 24 -- Demand for Chinese electric vehicles in overseas markets has jumped since the price of crude oil began to soar on the back of the Middle East conflict.

High oil prices have enhanced the cost advantage of new energy vehicles, significantly boosting demand in markets sensitive to fuel costs, including Europe, the Middle East, and Southeast Asia, Cui Dongshu, secretary-general of the China Passenger Car Association, told Yicai in an interview.

Sales of NEV brands, including China's BYD and GAC Group, have risen noticeably in Australia in the past two weeks, with many dealerships reporting a more than 30 percent jump in footfall from a month earlier. Promotions and discounts have further boosted sales.

“It has been really exhausting and busy because we’ve had so many customers," a salesperson at a BYD dealership in Melbourne told Yicai. I have been receiving nearly 10 groups of customers each day, he noted, adding that all six of his colleagues are working non-stop, so the manager is urgently hiring.

The showroom is selling more than 10 BYD-brand EVs a day, with sales expected to climb 50 percent this month from a year earlier, the person said.

Orders for Chinese EV brands are also surging in Southeast Asian countries, such as Thailand, Singapore, the Philippines, and Indonesia. The manager of an Xpeng Motors dealership in Singapore told Yicai that footfall jumped 30 percent last week compared with the prior seven days, as more drivers consider buying electric vehicles.

A BYD dealership in Manila said it has received as many orders in the past two weeks as in the whole of last month.

In the short term, soaring oil prices are also putting pressure on car manufacturers through higher component and logistics costs, squeezing profit margins and delivery efficiency to some extent, Cui noted. But in the long term, sustained high oil prices will strengthen the global competitiveness of China's new energy industry, reinforce its market edge, and raise its market share, he added.

This situation is also forcing carmakers to accelerate their localization efforts in overseas markets to hedge risks, Cui pointed out.

Editors: Tang Shihua, Futura Costaglione