Beijing: China has reduced the impact of the Strait of Hormuz oil shock by expanding EV taxi usage and cutting fuel demand across its transport sector.
Taxi and ridesharing usage has surged across cities, with government data showing 3.05 billion trips in May and a 6 percent rise since the Iran war began at the end of February compared with the same period last year. The increase has reflected steady commuter demand and wider adoption of app-based transport despite higher fuel prices.
The increase has reflected a structural shift and the transport costs have fallen despite rising gasoline prices. The change has been driven by the rapid electrification of taxi fleets. This has reduced dependence on oil. It has also helped China absorb global supply disruptions.
About half of China’s 1.3 million taxis are now electric, according to the Ministry of Transport. In major cities the share has approached 100 percent. The expansion has strengthened resilience in urban mobility. It has also limited exposure to fuel price volatility.
Didi, the country’s main ridesharing platform, has added 2 million hybrid or electric cars in the past year, taking the total non-fossil fuel fleet to 8 million vehicles. EV now account for 75 percent of total mileage on the platform, strengthening the shift away from petrol and diesel use in urban transport.
Fuel consumption trends have reflected this shift, driven by EV adoption, with China burning 10 percent less gasoline and 14 percent less diesel in May despite 2 percent freight growth and record holiday travel. Oil imports have fallen 41 percent in June, easing pressure on global markets.
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