Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE has seen notable growth in electric vehicle (EV) sales in recent years. Driven by a mix of economic incentives, environmental goals and government-backed infrastructure expansion, the electric vehicle market is becoming an integral part of the country's future transport landscape.
According to Statista, an online data-gathering platform, the UAE's electric vehicle market revenue is expected to reach $1.95 billion in 2025, with projections suggesting a compound annual growth rate (CAGR) of 3.78% between 2025 and 2029.
Recent research by Mordor Intelligence shows that the UAE hybrid and electric vehicle market is estimated at $2.21 billion, and is expected to reach $9.03 billion by 2030, growing at a robust CAGR of 26.48%.
PwC's eMobility Outlook 2024 paints a promising future for EVs in the UAE, estimating that electric vehicles will account for over 15% of new car sales by 2030. By 2035, this figure is set to rise to 25%, equivalent to around 110,500 vehicles.
The report also acknowledges that the UAE has identified eMobility as a "priority policy area" under its Energy Strategy 2050, aiming for carbon neutrality by mid-century.
According to the UAE Minister of Energy and Infrastructure, the country aims to ensure that electric and hybrid vehicles make up 50% of the total vehicles on the road by 2050, aligning with its broader sustainability goals.
Local Dealerships Report Increased Demand
Speaking with Aletihad, Esrar Khan, a salesman at a car dealership in Abu Dhabi, noted a significant uptick in the demand for electric vehicles in the UAE over the past two years.
"The customers who are choosing EVs do so for their economic benefits, primarily due to the lower operational costs," he said.
However, a key concern remains the depreciation in resale value, which continues to worry some potential buyers, according to Khan.
Rajeh Mohammad, also a salesman at a local dealership, shared similar insights in conversation with Aletihad.
Mohammad imports his EVs from China, with prices ranging from Dh90,000 to Dh250,000.
"I'd say our electric vehicle sales have been growing by 15-20% year on year," Mohammad explained. "The operating costs are a major pull, but concerns about battery lifespan are still prevalent. Thankfully, new models are coming with improved batteries, which addresses that fear."
He also pointed out the role of government efforts in boosting the EV market, noting the increased number of charging stations across the UAE, which have helped alleviate range anxiety.
Infrastructure and Charging Stations
PwC's eMobility Outlook 2024 report shows that the UAE government is investing heavily in charging infrastructure to support the transition towards electric mobility.
ADNOC and TAQA have committed to installing 70,000 EV charge points across Abu Dhabi by 2030.
Meanwhile, the Dubai Electricity and Water Authority (DEWA) plans to increase its Green Charging Stations from 370 in 2023 to 1,000 by 2025.
Last year witnessed the launch of UAEV, the country's first government-owned electric vehicle charging network.
This joint venture by the Ministry of Energy and Infrastructure (MoEl) and Etihad Water and Electricity (Etihad WE), is set to provide fast and accessible EV charging stations across all seven emirates.
