China turns to electric taxis to soften Hormuz oil shock
A Ministry of Transport tally says half of China’s 1.3 million taxis are electric, helping cut gasoline use 10% in May.
- China has developed an increasingly important buffer against oil price shocks through expanding electric taxi and ride-sharing fleets, insulating the nation from supply disruptions like closure of the Strait of Hormuz.
- According to the Ministry of Transport, roughly half of China's 1.3 million-strong taxi fleet is electric, nearing 100 per cent in major cities; ride-sharing app Didi added 2 million hybrid or electric vehicles in 2025, reaching 8 million total with EVs doing 75 per cent of mileage.
- Rising petrol prices since March have made ride-hailing cheaper than private car ownership; "As fuel prices have gone up, people are driving their own petrol cars less," said Daizong Liu, East Asia director at the Institute for Transportation & Development Policy in China.
- Consequently, China slashed oil imports by 41 per cent in June without extensively tapping reserves, following 10 per cent lower petrol consumption and 14 per cent lower diesel use in May despite record road freight and holiday travel.
- J.P. Morgan analyst Natasha Kaneva noted the conflict may have "accelerated behavioral changes" leaving China structurally less dependent on oil, though petrol demand is forecast to continue declining in 2027 at a slower pace than 2026's 150,000 barrels-per-day drop.
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13 Articles
The Straits Times
evshift.comChina's electric taxis cushion oil price shock
Discover how China's widespread adoption of electric taxis is mitigating the impact of global oil price fluctuations and reducing fuel dependency. Read more at straitstimes.com.
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China reduces fuel demand with electric taxis as crude imports hit decade low
China imported 41.3% less crude oil in June this year compared to the same month a year earlier, with this posing as the country’s fuel import weakest month since October 2016. Electric taxis have helped to absorb a huge slice of the shortfall since the Strait of Hormuz crisis began. China’s import figures and petrol demand The figures released by the country’s Customs on July 14 put June imports at 29.27 million tonnes. This comes five months …
China's EV Taxis Are Shielding The Economy From Oil Shocks
China's rapidly expanding fleet of electric taxis and ride-hailing vehicles is reducing the country's dependence on oil, helping cushion the impact of global fuel price shocks. The post China’s EV Taxis Are Shielding The Economy From Oil Shocks appeared first on StratNews Global.
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