China is increasingly relying on electric taxis and ride-hailing services to soften the blow of oil price shocks linked to disruptions around the Strait of Hormuz.
CHINA TURNS TO ELECTRIC TAXIS TO CUSHION OIL SHOCKS
China is increasingly turning to electric taxis and ride-hailing services to cushion the impact of oil price shocks linked to disruptions around the Strait of Hormuz, Reuters reports. Taxi and ride-hailing trips rose six per cent between March and May, reaching 3.05 billion trips in May alone.
About half of China’s 1.3 million taxis are now electric, while ride-hailing giant Didi said it operates eight million hybrid and electric vehicles, with EVs accounting for 75 per cent of total mileage. Analysts say cheaper electric vehicles and lower fares are pushing commuters away from petrol-powered cars.
The shift has contributed to lower fuel consumption and a sharp drop in oil imports, easing China’s dependence on crude despite rising transport demand.
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