Q1.) What is the current stage and trends in the UAE EV Market?
Ans: Currently, electric vehicles (EVs) make up about 13% of all vehicles and around 2% of motorcycles in the UAE. There has been a significant emphasis on EV adoption by both the government and the people. The UAE aims to have 30% of all vehicles electric by 2030. Over the past five years, the growth has been remarkable. Comparing fuel prices before and after COVID, there was quite an increase in fuel prices. This led many people to switch to electric vehicles due to the fluctuating fuel costs, which makes EVs seem more reliable in the long run.
There was a slowdown in the sales during 2018-19. It was mainly due to the slow growth of EV charging infrastructure. The momentum for EV charging infrastructure growth only gained traction post-COVID, particularly in late 2020 and early 2021. While the lockdown did have a slight impact, things quickly returned to normal.
Q2.) How is the price trend for electric vehicles in UAE?
Ans: Prices vary depending on the manufacturers. Overall, prices are trending downward. As EV sales volume increases, manufacturing costs decrease, leading to lower prices. The charging infrastructure development goes hand in hand with EV adoption. The increase in EV volume corresponds to an increase in the volume of EV charging equipment. There might be a decline of around 5-7% in the average prices. This reduction in prices would make electric cars more accessible to a wider range of people.
Q3.) How do you anticipate the segmentation based on the type of vehicles in the EV market?
Ans: Sedans and SUVs are gaining a larger share due to the extensive road networks and longer average travel distances in the UAE. Hatchbacks will likely grow as a market for shorter commutes. Electric trucks and buses have a smaller share due to their limited range. As technology advances, their market share could expand.
Q4.) Which major cities in the UAE have the highest EV sales?
Ans: Dubai and Abu Dhabi lead in EV sales. Sharjah and other emirates follow suit. The government in Dubai is actively promoting EVs and charging infrastructure, even integrating EV chargers with petrol pumps. Sharjah is also making strides. The northern emirates, with smaller populations, have a smaller share.
Q5.) Who are the top manufacturers in the UAE's EV market and their market share?
Ans: Tesla holds the largest market share, followed by MG and Porsche. Tesla has around 50% of the market due to being an early entrant. Chinese companies like MG, GAC, and Geely have gained traction recently. Other players like Hyundai, Volkswagen, Polestar, Audi, BMW, and Mercedes hold smaller portions of the market.
Q6.) Are there any challenges facing the UAE EV market?
Ans: Challenges include the EV charging infrastructure, which is both a boon and a question mark. Range anxiety is also a concern given the long distances people often travel. The heat in the region impacts battery performance, but current technology seems to be holding up.
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Ankur Gupta, Head Marketing & Communications