China’s EV sector in a higher oil price world

PERSPECTIVES Special - June 2026

EVs represent a key entry point into the electrification theme and appear to be approaching a structural tipping point, driven by falling battery costs, improving technology, and rising oil prices that enhance the total cost advantage of electric vehicles. Our PERSPECTIVES Special – China’s EV sector in a higher oil price world looks further into this theme.

Close to a structural tipping point?
Key drivers of the EV investment case
Key risks and constraints to the EV investment case
Performance of China’s EV and battery sectors
Conclusion

Key takeaways

The investment case is supported by several structural factors: stronger EV economics in a high oil price environment, China’s leadership in battery technology and vertically integrated supply chains and accelerating export growth that offsets softer domestic demand.
Industry dynamics are also improving, with consolidation and policy measures shifting competition away from aggressive price wars toward profitability, innovation, and global expansion.
However, risks remain, including commodity cost volatility, trade barriers, overcapacity among weaker players, and uneven global EV adoption.

Further links on the topic

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Authors: Markus Müller, Chief Investment Officer for Sustainability & Global Head of CIO Office -Prof. Dr. Jacky Tang, Chief Investment Officer Emerging Markets - Jason Liu, Head of Chief Investment Office APAC - Wolf Kisker, Senior Investment Strategist - Swati Bashyam, Investment Officer APAC - Heval Ag, Investment Strategist.

Il presente materiale viene divulgato unicamente a scopo informativo e non deve essere interpretato come un’offerta, una raccomandazione o un invito all’acquisto o alla vendita di investimenti, titoli, strumenti finanziari o altri prodotti specifici, per la conclusione di una transazione o la fornitura di servizi di investimento o di consulenza sugli investimenti o per la fornitura di ricerche in materia di investimenti o raccomandazioni in merito agli investimenti, in qualsiasi giurisdizione. Per maggiori informazioni si prega di leggere la sezione ”Informazioni importanti” presente nel del report completo scaricabile dal link di cui sopra.

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China’s EV sector in a higher oil price world

Contents

Key takeaways

Further links on the topic

Scarica il documento completo in pdf

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