EV Market of the UAE: The Booming Electric Mobility Industry
In line with the growing levels of climate change threats and the need for cutting down on fossil fuel consumption, interest in electric vehicles has escalated in the UAE for the past few years, across companies and societies.
Global Electric Mobility Readiness Index placed UAE in the 8th place in terms of readiness of markets for electric mobility. Being the second largest automotive market in the GCC, the EV sector of UAE is witnessing significant growth trends given the government incentives intended for promoting green mobility, increased tourist footfall, and high per capita income. Growing at a CAGR of nearly 30% between 2022-2028, there is a growing number of EVs in the country. Dubai alone accounted for nearly 8500 registered EVs in 2021. Tesla constituted the major proportion of EV sales in the market in 2021, accounting for more than 50%.
Having already achieved a milestone under Vision 2021 of converting 20 percent of government agency cars to EVs, UAE’s Vision 2030 and ambitious goals of achieving net zero emissions by 2050 are set to stimulate the growth of the sector further in the years to come. Emirate of Dubai announced its aim to have 10% electric or hybrid vehicles on its roads and transform 25% of the transportation in Dubai to autonomous mode by 2030 and has laid out a framework for achieving it. Given the high government budgets and goals, the UAE provides a conducive environment for businesses to innovate and operate in the EV sector.
The existing infrastructure and the developments underway are sure to set the country as a contending location for EV operations. With 325 charging stations installed, UAE accounts for the biggest charging station-to-vehicle-ratios in the world.
Surveys suggest that more than 50% of UAE residents are willing to purchase EVs intending to contribute to the green transition and tackle the increasing fuel prices. Nearly 30% are awaiting EV options to make a purchase. Currently, 95 % of the EV market fragmentation is attributed to passenger vehicles. Government agencies are well positioned to incentivize citizens with incentives such as free parking, exemption from tolls, and reduced registration fees to promote increased adoption of EVs. There is a sharp rise in demand for EV car rentals, vehicle care, and services in the country. Intertwined with innovations and incentives, the electric mobility industry of the UAE is ever-growing. It can prove to be of considerable importance in the years to come.
EV is ready to go mainstream in UAE with the right support from the Government and Private players making it the right time to enter the market. RAG consists of a team of widely experienced business consultants in Dubai and research experts in the UAE providing solutions to business aspirants seeking opportunities to kick start EV or related industry services in the country. Contact us at Toll Free Number 800724249 or +971 52 103 0680. Write to: firstname.lastname@example.org to know how we can support you.