Akito Tanaka shares his weekly reflections and recommendations
Drivers charge their Tata EVs at a charging station in Mumbai on Sept. 9, 2025. Total electric car sales in India grew 87% in the fiscal year through March, with incoming emissions rules expected to give the segment a further boost in the near future. © Reuters
Hello from Tokyo. Nearly two months have passed since the U.S. and Israel launched a surprise attack on Iran. With the prospects for further ceasefire negotiations still uncertain, oil supplies to energy-hungry Asia remain disrupted.
As the energy crisis drags on, changes in consumer behavior are emerging in India, which has overtaken Japan to become the world's No. 3 auto market. Fears of soaring fuel bills triggered by the Iran war have stoked Indian consumers' interest in electric vehicles. Sales posted a noticeable jump in March, and new emissions standards proposed earlier this month are set to give the trend lasting momentum long after the conflict ends.
EV sales in India surged 82% year on year in March to 24,148 units, taking total sales for the fiscal year ending that month to 233,246 units, eclipsing the numbers for major Southeast Asian countries. The growth is being led by local players such as Tata Motors and the Mahindra Group. While Suzuki Motor -- known for its low-priced, high-quality vehicles -- continues to hold the top market share overall, the acceleration of India's EV shift will have far-reaching implications for this vast auto market.
Meanwhile, Chinese automakers, already expanding EV sales at home in the world's largest auto market as well as across Southeast Asia, are turning their attention to hybrid vehicles, long an area of strength for Japan's car giants. Companies such as Geely Automobile are launching hybrid technologies one after another. At the Beijing auto show, which opened this week, overseas dealers are sizing up Chinese EVs to import to their home markets.
For decades, the global auto industry has been dominated by major Japanese, European and U.S. companies that maintained market share by rolling out global models. That long-running trend is now beginning to change. In China, which has emerged as the world's leading auto powerhouse, local manufacturers armed with broad lineups centered on EVs are building the strength to push foreign rivals aside. Similar signs may now be appearing in India as well. And the driving force behind this shift is Asian consumers. We hope you will continue to follow Nikkei Asia's compelling industrial coverage.
1. From April 18, more than three-quarters of a million Asians began boarding flights to the Persian Gulf. Whether there is war or peace in Iran, it is time for the annual Hajj Islamic pilgrimage to Mecca. While the rest of the world holds its breath for a positive outcome to ceasefire talks between the U.S. and Iran, citizens of countries like Indonesia, Pakistan, India and Bangladesh, the world's four biggest Muslim communities, say they are determined to press on with the Hajj -- a pilgrimage that under the rules of Islam is mandatory at least once in a lifetime for all who are physically able and can afford it.
2. Crude palm oil prices face upward pressure as output of the crop in Malaysia and Indonesia, which together account for 85% of global production, is expected to drop this year due to steep rises in fertilizer costs in the wake of the Iran war and forecasts for higher temperatures. Climbing prices could accelerate inflation and hit consumers hard in Asia and beyond, with the commodity used to churn out everything from cooking oil to margarine and instant noodles.
3. The use of mortgages is increasing in Vietnam. While a culture of aversion to debt traditionally meant paying cash, rocketing real estate prices in major cities like Ho Chi Minh City and Hanoi have made this difficult. Another major contributing factor is the growing number of young people, such as millennials, who are not bound by the historically common practice of multigenerational households. Some are concerned that rising interest rates may lead to more people being unable to make their payments.
Sign up for the weekly Editor-in-chief's picks newsletter here
Thank you for reading this newsletter. We are taking a short break and will be back in your inboxes on May 8.
