UAE ELECTRIC CAR MARKET
- In Dubai, a new plan has been approved by the Roads and Transport Authority (RTA) that seeks to make public transportation emission-free by 2050. It will make Dubai the first city in the MENA area to have a comprehensive strategy for zero-emission public transportation and accompanying infrastructure and the popularity of EVs in the UAE has grown significantly
- The UAE is at the forefront of innovation with 200 Tesla electric vehicles being introduced into the Dubai Taxi industry. This was the first step in Dubai’s plan to promote green mobility solutions, linked to the government’s ambitions to reach a quota of 25% of trips made by self-drive vehicles by 2030.
- In August 2021, Abu Dhabi’s Department of Energy announced that it would streamline tariffs for charging electric vehicles, as the adoption of cleaner forms of transportation picks up. A monthly tariff of Dh92 ($25.05) will be added to the bills of EV users in Abu Dhabi, until a sub-meter for charging units in private residences and commercial buildings is installed
- The “Green Charger” initiative was launched by the Dubai Electricity and Water Authority to provide charging stations for electric vehicles in various parts of Dubai supports the emirate’s efforts to provide innovative and environmentally friendly solutions through its contribution to reducing carbon emissions from the transportation sector and supporting the Dubai Green Mobility Strategy 2030.
- The rising price of fuel is another factor driving the growth of the electric car market in the UAE. Electric cars are much cheaper to operate than gasoline-powered cars, making them a more attractive option for consumers
- Consumers in the UAE are becoming increasingly aware of the environmental benefits of electric cars. Electric cars produce zero emissions, which helps to reduce air pollution and climate change.
- The UAE government is strongly supportive of the electric car market. It has introduced a number of incentives to encourage people to buy electric cars, including tax exemptions, registration discounts, and free charging.
- Electric cars are still more expensive to purchase than gasoline-powered cars. However, the cost of electric cars is falling rapidly, and the long-term savings on fuel and maintenance costs can offset the higher upfront cost.
- Some consumers are concerned about the range of electric cars. However, the range of electric cars is improving all the time, and many electric cars now have a range of over 300 km. Additionally, the growing number of charging stations means that electric car owners can easily charge their vehicles on long trips.
- Some consumers have negative perceptions of electric cars, such as that they are less reliable or less powerful than gasoline-powered cars. These perceptions are often based on outdated information, and the government and industry are working to educate consumers about the benefits of electric cars.
- The rising price of fuel is another factor that is expected to drive the growth of the UAE electric car market. Electric cars are much cheaper to operate than gasoline-powered cars, making them a more attractive option for consumers.
EVs can also reduce noise pollution in cities. Governments should also consider promoting electric two-wheelers and electric buses as a way of reducing pollution and noise in populated regions where point-to-point charging is possible.
There are two types of electric cars (EVs): battery electric vehicles (BEVs), which rely only on batteries for energy storage and must be recharged by plugging them in, and plug-in hybrid electric vehicles (PHEVs), which combine batteries with liquid-fuel storage and refuelling systems.
In both situations, the electric motor is extremely efficient, utilizing 90-95 percent of the input energy to propel the car forward and emitting zero pollutants.
BEV is not a contemporary high-tech notion, but rather a fairly simple technological concept that has been available as a series product for more than 110 years. As a result, skilled people can simply perform e-conversion, which is the conversion of new or old ICEVs to electric vehicles. In contrast, contemporary lithium-ion battery technology, which is required for most BEVs to be practical in everyday life,
UAE ELECTRIC CAR MARKET DEVELOPMENTS AND INNOVATIONS
|S No||Overview of Development||Development Detailing||Region of Development||Possible Future Outcomes|
|1||UAE-Based Electric Vehicle Manufacturer One Moto Is Ready To Take On The World||One Moto is an electric vehicle (EV) manufacturer offering a fleet of vehicles such as electric motorcycles, bikes, scooters, delivery and grocery vans, catering to the last-mile industry, as well as urban commuters.||UAE||This would enhance better EV Technologies and production|
UAE ELECTRIC CAR MARKET DYNAMICS
There has been an increased and integrated usage of the Battery based electric vehicles into the industrial perspective of operations and within the Global Electric car rental market optimizations. With continuous development of EV promotion and application in all fields of urban mobility, EV applied in carsharing has become increasingly widespread. Positively affected by early well-known and successful cases worldwide.
Various initiatives and programmes across the UAE are encouraging these shifts towards Green Mobility because the transportation sector plays a vital role in decreasing the carbon footprint. These programmes promote electric, hydrogen, and natural gas cars, as well as mass transportation systems such as Dubai’s light rail system and a high-speed train.
In Dubai, for example, a new plan approved earlier this year by the Roads and Transport Authority (RTA) seeks to make public transportation emission-free by 2050.
It will make Dubai the first city in the MENA area to have a comprehensive strategy for zero-emission public transportation and accompanying infrastructure. Consequently the popularity of EVs in the UAE has grown significantly.
Incentives offered by the government, banks, and car dealers, has also led to the growth in the UAE’s imports of EVs and increased environmental awareness among citizens.
UAE is one of the global leaders in shifting towards Green Mobility that has several health, environmental and economic benefits with the final aim to further improve the quality of life in UAE.
UAE ELECTRIC CAR MARKET SEGMENTATION
The UAE Market of Electric Car can be segmented into following categories for further analysis.
By Battery Type
- Li-Ni Manganese Cobalt
- Lithium Ion Phosphate
- LI-Ni Cobalt Aluminium Oxide
By Electric Vehicle Type
- BEV (Battery Electric Vehicle)
- PHEV (Plug- in Hybrid )
- HV (Hybrid Vehicle )
By Cost of the Vehicle
By Drivetrain Configuration
- Rear/Front Wheel Drive
- Four Wheel Drive
- All Wheel Drive
RECENT MARKET TECHNOLOGICAL TRENDS IN UAE ELECTRIC CAR MARKET
The main aim of electric cars integration into the UAE Market is its potential contribution to increased electric vehicle adoption. The selection of a certain vehicle depends on the utility that the attributes of this vehicle have to the decision maker. In earlier years, most focus was on instrumental aspects such as price, range, and fuel consumption.
There has been a recent changing trend in the Charging Infrastructure being planned for Electric Cars in UAE considering their presence under the luxury usage sector to be eminent and most promising. There has been technological integration of the Wall based high speed hyper charging capacitance.
The advantage of the wall box is that it halves the charging time when compared to the wall socket charger. Dubai’s two-part strategy relies heavily on the EV charging infrastructure, investing in the build of hundreds of charging stations around the city.
The most improvisation has been in the charging provision being provided for the EVs present in UAE through Mobile Charging platforms of operation. Charging vans, portable chargers, and temporary chargers are examples of mobile charging, where the chargers themselves are “on the go” and do not require infrastructure expenditures.
There is no need for structural modifications, no large financial outlays, and no more issues for fleet EVs that require quick roadside charging – one of the first applications of the mobile charging vans.
TRENDS IN UAE ELECTRIC CAR MARKET
BYD has partnered with ADNOC, the UAE’s national oil company, to build charging infrastructure for electric vehicles. The partnership aims to build 50 charging stations across the UAE by the end of 2023.
With the prices of Lithium ion Battery being reduced by 40%, along with the various government policies, the cost of EV is also expected to reduce significantly which will most definitely increase the sales.
The new charger has a maximum output of 360 kW and is capable of fully charging any electric car in 15 minutes or less
BMW has been one of the most technologically advanced electric car manufacturer presence maintained in the UAE with a possible sustainable future of prospective taken into action through the EVs. It has introduced the BMW i3 model of Electric vehicle-based operations.
L-Charge, the Russian-based manufacturer of innovative charging infrastructure for electric vehicles, will debut its cutting-edge technologies at Gestech Exhibition and Conference, the world’s largest event supporting the gas, LNG, hydrogen, and energy industry
This new system was developed in Dewa’s Research and Development Centre which can charge all types of electric vehicles with a single cable and plug.
Dewa registered a patent for a universal smart system for electric vehicle charging stations, as part of its green economy goals.
The UAE government is taking a number of initiatives to promote the adoption of electric vehicles, such as providing subsidies for electric vehicles, building charging infrastructure, and exempting electric vehicles from registration fees.
The UAE has a large and growing population of affluent consumers who are looking for high-end electric vehicles.
The rising price of fuel is another factor driving the growth of the UAE electric car market. Electric cars are much cheaper to operate than gasoline-powered cars, making them a more attractive option for consumers.
Luxury electric cars are becoming increasingly popular in the UAE. This is due to a number of factors, including the growing demand for luxury cars, the rising price of fuel, and the increasing awareness of environmental benefits
NEW PRODUCT LAUNCH
ABB has launched an innovative all-in-one electric vehicle (EV) charger Terra 360, a modular charger which can simultaneously charge up to four vehicles with dynamic power distribution.
Nissan has launched its new electric SUV, the Ariya, in the UAE. The Ariya is available in three variants, and it offers a range of up to 610 kilometers on a single charge.
Chevrolet has launched its new electric SUV, the Bolt EUV, in the UAE. The Bolt EUV offers a range of up to 416 kilometers on a single charge.
Hyundai has launched its new electric car, the Ioniq 5, in the UAE. The Ioniq 5 offers a range of up to 481 kilometers on a single charge.
ADNOC is an oil and gas company that is also investing in the electric car market. ADNOC is planning to launch a new electric car charging network in Abu Dhabi. The network will include over 50 electric car charging stations.
Tesla launched the Model Y in the UAE in September 2023. The Model Y is a fully electric SUV that offers a range of up to 614 kilometers on a single charge.
BYD launched the Han EV in the UAE in August 2023. The Han EV is a fully electric sedan that offers a range of up to 605 kilometers on a single charge
Electric vehicles are the closest thing to a pollution-free mode of transportation. Only the creation of power to charge their batteries and, potentially, the disposal of the batteries would have negative environmental consequences (although recycling may dispel this concern). Electric cars are the most current in a long line of developments that have swept the commercial automotive sector, and Dubai is at the forefront of this transformation.
BMW has been one of the most technologically advanced electric car manufacturer presence maintained in the UAE with a possible sustainable future of prospective taken into action through the EVs. It has introduced the BMW i3 model of Electric vehicle-based operations, The body is composed of CFRP (Carbon-fibre Reinforced Plastic), which results in less weight and greater power to the wheels.
The i3 has an electric motor with rear wheel drive and a single-speed gearbox, as well as an underfloor Li-ion battery pack and an auxiliary (and optional) combustion engine to extend the car’s range on long road journeys.
Nissan Motor Company has also made its presence in UAE through the Nissan Leaf which has been the most economical EV in the market around the global scenario of operations as well. The Nissan Leaf has a range of around 241 kilometres on a single charge, making it very competitive in its immediate market.
The Nissan can attain a peak speed of 150 km/h and a 0-100 kmph time of 7.9 seconds thanks to a synchronous electric motor with 110 kW (147 hp) driving the front wheels and energy provided by a 40 kWh Li-ion battery pack.
- Tesla Inc
- Hyundai Motor Company
- Volkswagen Motor Company LTM
- Bayerische Motoren Werke AG ( BMW )
- Chevrolet Motors
- Lucid Motors
- One Moto UAE
- Ford Motor Company
- General Motors
- Nio Motors
- Nissan Motor Company
THIS REPORT WILL ANSWER FOLLOWING QUESTIONS
- UAE Electric Car Market size and Forecast, by region, by application
- Average B-2-B price for UAE Electric Car Market, by region, per user
- Technology trends and related opportunity for new UAE Electric Car Market tech suppliers
- UAE Electric Car Market share of leading vendors, by region
- The market size (both volume and value) of the UAE Electric Car Market in 2023-2030 and every year in between.
- What are the major challenges facing the UAE Electric Car Market?
- Who are the key players in the UAE Electric Car Market?
- What are the future growth prospects of the UAE Electric Car Market?
- What are the competitive strategies adopted by the key players in the UAE Electric Car Market?
- What is the impact of the increasing demand for Car on the UAE Electric Car Market?
- How is the growing awareness of the benefits of laser welding affecting the UAE Electric Car Market
- What are the new UAE electric car market projects that are being planned or underway?
- What are the different types of electric car government incentives available in the UAE?
- What is the status of charging infrastructure development in the UAE?