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Tuesday, May 27, 2025

Electric Vehicle Sales Surge by 45% in UAE's First Quarter

Electric Vehicle Sales Surge by 45% in UAE's First Quarter

Growing adoption reflects a significant shift towards sustainable mobility, bolstered by infrastructure expansion and government incentives.
Sales of electric vehicles (EVs) in the United Arab Emirates have experienced a remarkable increase of 45% in the first quarter of this year compared to the same period last year, according to automotive agency officials.

This surge signifies a substantial shift in market trends towards sustainable transportation.

Factors contributing to this growth include the expansion of charging infrastructure, the introduction of various new models across different price categories, and government incentives such as reduced registration fees and exemption from customs duties.

The standardization of charging tariffs and heightened public awareness of sustainability have also played pivotal roles.

Kareem Maqsood, General Manager at Al Habtoor Motors, noted that the first quarter marked a pivotal period for the company’s EV sales in the UAE, with a 45% increase year-on-year.

He highlighted the unprecedented consumer demand as a reflection of a broader market transformation towards sustainable mobility, supported by government initiatives and improved infrastructure, positioning the UAE as one of the most vibrant markets for electric vehicles in the region.

Maqsood emphasized the strong alignment between government policies and private sector initiatives, coupled with increasing consumer demand.

Several key factors underpin this growth, notably government-supported initiatives that provide a robust charging infrastructure.

The expansion of the charging network has alleviated concerns regarding the driving range of electric vehicles.

The UAE's commitment to achieving carbon neutrality by 2050 has further accelerated the adoption of EVs.

Al Habtoor has launched the JACK E30X model this year and plans to introduce a range of new electric models to meet rising demand and support the country’s shift towards sustainable transportation.

Maqsood elaborated that ongoing strong government support, economic benefits related to ownership of electric vehicles, and public awareness of environmental issues will further propel demand in the future.

Efforts to enhance the market for used EVs, alongside educational campaigns on the advantages of electric vehicle ownership, are also expected to play a significant role.

Despite the current momentum, challenges still persist.

Initial costs of electric vehicles, although gradually decreasing, remain a barrier for some customers, and concerns about the vehicles’ range continue among certain consumer segments.

Jean Schidgin, General Manager at Audi Al Nabooda, affirmed the ongoing increase in EV sales driven by infrastructure expansion and government incentives.

He highlighted the UAE's goal of having 50% of vehicles on the roads be electric by 2050 and the rising public awareness of sustainability.

The diversity in electric vehicle models allows consumers to select vehicles that fit their preferences without compromising on design or performance, tying national climate change policies to the future of electric mobility.

Schidgin called for continued incentives and easier access to charging stations.

Audi has unveiled the RS e-tron GT Performance model in Dubai earlier this year and is set to showcase the Audi A6 e-tron soon, as part of its commitment to expanding its electric vehicle portfolio.

Nonetheless, he also pointed out challenges like driving range and ease of access to charging stations, particularly outside major cities.

Mustafa Azam, a representative from a local dealership, reported a 30% growth in electric vehicle sales in the first quarter of 2025 compared to the same time last year, driven by enhanced infrastructure and government support.

Jack Opal, CEO of General Motors Africa and the Middle East, described 2025 as a pivotal year for the group's transition to electric vehicles across its Chevrolet, GMC, and Cadillac brands.

This initiative aims to foster a future characterized by zero accidents, zero emissions, and zero congestion while enhancing consumer purchasing power and vehicle performance.

General Motors launched the Chevrolet Spark EUV 2026 model in the first quarter and plans to introduce the fully electric Cadillac Optiq EUV in the upcoming months.

The company is prioritizing extended range capabilities, fast charging solutions, and advancements in home charging technology.

Scott Shiers, General Manager at Audi Abu Dhabi, confirmed the ongoing growth in electric vehicle sales driven by an influx of new companies entering the market with an array of electric models across different price points.

Major companies, including taxi services and rental agencies, are increasingly adding electric vehicles to their fleets to meet sustainability goals.

Audi has recently launched the Q6 e-tron and e-tron GT, with plans to introduce the A6 and S6 e-tron later this year.

Shiers stressed the importance of accessible charging infrastructure, as consumer confidence in the availability of charging stations is pivotal to broader adoption of electric vehicles, paralleling traditional fuel practices.

Shiers further noted that the availability of affordably priced models, diverse options, and extended driving ranges between 500 and 700 kilometers, combined with competitive financing options, are critical to increasing electric vehicle demand.

Government incentives and tax exemptions are recognized as significant factors in encouraging consumer transitions to electric vehicles.
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