Surge In Electric & Hybrid Cars Searches in the UAE: A Green Revolution on the Horizon

The UAE is renowned for its opulent lifestyle, futuristic cityscapes, and fancy cars. More often than not, these exotic cars are all gas-guzzling monsters, or it has been that way until recent times. Now though, the UAE is turning into an emerging hub for sustainable transportation. In recent years, there has been a noticeable shift in the automotive landscape, with electric cars and hybrid vehicles gaining unprecedented popularity.

The automotive industry is undergoing a revolutionary transformation worldwide, and the UAE is following closely. With a growing awareness of environmental issues and a commitment to sustainable living, the UAE is witnessing a remarkable surge in the popularity of electric and hybrid cars. In this article, we explore the factors driving this shift, its impact on the automotive market in the UAE, and just how big this shift really is.

A Quick Look At The Numbers

Data collected by DubiCars over the last two years and supplemented by more data from our Valuation partner AlgoDriven shows just how massive the increase in demand for EVs are Hybrids is.

In October 2022 the share of leads for petrol-powered cars stood at 84.09% which decreased to 78.50% in October 2023 — a drop of 5.59%. For diesel-powered cars, the share of leads in October 2022 stood at 11.37% which increased to 11.91% in October 2023 — a marginal increase of 0.54%.

Digging into the leads generated by electric vehicle and hybrid car listings gives us an insight into just how popular these cars really are becoming. In October 2022, the share of leads for electric car listings stood at 2.77% whereas October 2023 saw the share jump to 6.25% — a significant increase of 3.48%.

Fuel Type	October 2022	October 2023	YoY%
Petrol	84.09%	78.50%	– 5.59%
Diesel	11.37%	11.91%	+ 0.54%
Electric	2.77%	6.25%	+ 3.48%
Hybrid	1.70%	3.32%	+ 1.62%

Hybrids stood at just 1.70% in October 2022 and increased to 3.32% in October 2023 — a nominal increase of 1.62%. While the growth percentage in itself is quite staggering, what they truly reveal is the market sentiment.

These numbers show that more people are searching for electric vehicles than ever before. Going by the global automotive industry trends, this number is only bound to grow and more buyers will end up opting for electric vehicles and hybrids instead of petrol or diesel-powered cars.

Though it looks like EVs and Hybrids are doing well in the UAE, the numbers are still quite low compared to other developed countries. In China, EVs & Hybrids made up 37.7% of all vehicle sales in October 2023. In the third Quarter of 2023, the American car market saw almost 25% percent of all vehicle sales coming from EVs and Hybrids.

In Norway, they make up more than 75% of all sales, in Sweden, the number is around 55 percent and in the UK, it is close to 50%, all in the third quarter of 2023. Going by these numbers, we have a lot of catching up to do.

Popular Electric Vehicles In The UAE

Rising Fuel Prices Drive An Increase In Demand For EVs & Hybrids

As aforementioned, the UAE is an oil-rich country and as a result, fuel prices are less expensive compared to the rest of the world. The UAE constantly ranks among the Top 25 countries with lowest fuel prices in the world. Here are the current fuel prices in the UAE for your reference. Despite this, even a slight increase in fuel prices results in more people searching for electric cars and hybrids.

Fuel Type	July 2023	August 2023	September 2023	October 2023
EPlus 91	2.81	2.95	3.23	3.26
Special 95	2.89	3.02	3.31	3.33
Super 98	3.00	3.14	3.42	3.44
Diesel	2.76	2.95	3.40	3.57

Cost of fuel — AED per litre in the UAE*

October 2023 was the fourth consecutive month with a fuel increase. Each increase was quite minute, and over four months, fuel prices had increased by around AED 0.5. However, this did lead to more people searching for more efficient alternatives, therefore resulting in more searches for electric cars and hybrids. In addition, there are other factors causing buyers to look at these ‘Green’ vehicles.

Factors Driving The Shift Towards Electric & Hybrid Mobility

Increase In The Number Of EV & Hybrid Models

Early in the EV and hybrid revolution, manufacturers introduced cars that were rather boring and lacklustre. However, that has changed over the last few years. Both electric cars and hybrids now look great, have tons of features in them and they are just way more interesting. Here are a few examples of recent electric and hybrid car launches and reveals:

– Volvo EM90 Luxury Electric Van Revealed

– Lamborghini Revuelto Hybrid Supercar Debuts In The UAE

– Nissan Announces The Arrival of Low-Cost EVs

– Toyota Land Cruiser Se Electric Concept Revealed

– Porsche Mission X Electric Hypercar Showcased At GIMS 2023

– MG Marvel R & MG4 Electric Vehicles Showcased In The UAE

As it turns out, that’s just the beginning. More interesting electric vehicles and hybrids are set to arrive soon. This includes the Acura ZDX, Alfa Romeo Giulia EV, Apple Titan EV, Audi A6 e-Tron, Audi Q6 e-Tron, BMW i5M, Five Bently EVs, Cadillac Escalade iQ, Chevrolet Silverado EV, Chevrolet Corvette EV, and more.

Environmental Consciousness

The global call for environmental responsibility has also left an impact in the UAE, prompting a shift towards greener transportation options. Despite the UAE being an oil-rich country, and surrounded by other oil-rich nations, EVs are finding more acceptance in the UAE because of the environmental consciousness driven by its massive expat population.

Electric and hybrid cars are at the forefront of this change, offering a cleaner and more sustainable alternative to traditional combustion-engine vehicles. The UAE, recognizing the need to reduce carbon emissions, has embraced electric and hybrid vehicles as a key component of its commitment to environmental conservation.

Government Initiatives And Incentives

The UAE government has played a pivotal role in promoting the adoption of electric and hybrid vehicles. Incentive programs, subsidies, and certain exemptions on registration fees and taxes have been introduced to make these vehicles more accessible to the public. These initiatives not only encourage individual consumers to choose eco-friendly options but also attract businesses to integrate sustainable practices into their fleets.

The Roads & Transport Authority of Dubai recently announced its Net Zero 2050 plan and as a part of this plan, all RTA taxis in Dubai will be electric by 2040. The RTA has already initiated its plan to replace all its diesel-powered buses with EVs by 2050.

Advancements In Technology

The rapid advancements in electric vehicle (EV) technology have significantly enhanced the appeal of electric and hybrid cars. Improvements in battery efficiency, charging infrastructure, and overall performance have addressed concerns about range anxiety and charging accessibility.

As a result, consumers in the UAE are more confident in making the switch to electric and hybrid vehicles, contributing to the rise in their popularity. The future of electric mobility is quite interesting. Here’s a look at the past, present, and future of electric vehicles.

Expansion Of Charging Infrastructure

A crucial factor in the growing popularity of electric vehicles is the development of a robust charging infrastructure. The UAE has witnessed substantial investments in charging stations, making it more convenient for electric vehicle owners to charge their cars.

The emergence of fast-charging stations along major highways has alleviated concerns about the practicality of electric vehicles for long-distance travel, further boosting their appeal. Several contracts and deals have already been signed to install more charging stations and chargers across the UAE including the Northern Emirates.

Economic Viability

The long-term cost savings associated with electric and hybrid vehicles have become a compelling reason for consumers to make the switch. While the initial purchase cost may be higher than traditional vehicles, the lower operating and maintenance costs, along with government incentives, make electric and hybrid cars economically viable in the UAE.

The decreasing cost of batteries and the overall lifecycle cost of these vehicles contribute to their attractiveness. Here’s a detailed guide on the cost of owning an electric vehicle versus the cost of owning a petrol vehicle for your reference. Buying an electric vehicle is also now more economically viable. We put together a list of the Top 10 EVs under AED 100,000.

Global Automotive Trends And Collaborations

The UAE is aligning itself with global automotive trends by fostering collaborations with leading electric vehicle manufacturers. Partnerships and agreements with companies at the forefront of electric vehicle development enable the UAE to stay abreast of the latest innovations and incorporate them into its market.

In addition, the hundreds of car dealers in the UAE constantly stay updated with the latest vehicle launches on the Global level and make sure that they arrive in the UAE market as soon as practically possible. This is how we in the UAE see some EVs and Hybrids on our roads even before they are officially launched.

Businesses in the UAE are increasingly recognizing the importance of corporate social responsibility (CSR) and are integrating sustainable practices into their operations. This includes adopting eco-friendly transportation solutions for their fleets. Many companies are investing in electric and hybrid vehicles, not only to reduce their carbon footprint but also to align with consumer expectations of socially responsible business practices.