With petrol costs at an all-time high in June, demand for electric cars (EVs) has exploded in the UAE. In light of the UAE’s high oil costs, Belal Nasr, CEO of New Auto, emphasized that EVs are extremely cost-effective.
“Instead of spending Dh2,000 on fuel, we can pay the same amount as instalments for the new electric vehicle. Also, banks are offering very attractive interest rates on electric vehicles and the government also encourages the use of electric cars,” said Nasr.
He stated that as fuel prices rose, there was a surge in demand for EVS; and that clients are concerned since the price has remained high in worldwide markets.
The firm imports and exports various electric vehicle brands, including Volkswagen, Hyundai, and Kia. Nasr noted that the UAE market is experiencing a scarcity of EVs due to high demand in the local market.
According to a poll conducted by Audi Abu Dhabi, 52% of UAE residents are planning to buy hybrid or electric vehicles as a result of rising gasoline prices, while 25% are waiting for more EV alternatives before making a decision. Surprisingly, 14% claimed they recently acquired a gasoline car but wished they had purchased a hybrid/EV instead.
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Fuel prices in the UAE hit a record high of nearly four dirhams per liter in June, up 56% from January 2022 due to a spike in global oil prices caused by the Russia-Ukraine situation.
“Over time, interest in EVs has grown naturally. However, rising gasoline costs have likely hastened the shift in customer attitudes toward EV adoption “Audi Abu Dhabi general manager Mark Austin stated.
Charging electric vehicles is currently free or relatively low, according to Amjad Nasr, managing director of New Auto. “Charging EVs costs very less when compared to filling fuel prices. A regular car costs Dh200-250 to fill the tank. So filling the tank 8 to 10 times a month means Dh2,000, which the car owner can pay for his EV’s monthly instalment” he said.
In the UAE, a number of malls and buildings now provide free charging and parking for electric vehicles. Owners of environmentally friendly vehicles can also get a tax-free sticker when they register their car.