The UAE electric vehicle (EV) market revenues are projected to grow at a compound annual growth rate (CAGR) of 32.1 per cent during 2019-25, according to global market research and consulting firm 6Wresearch
With expected rise in electric vehicle infrastructure, the demand for electric vehicles would surge exponentially over the coming years, according to the report titled "UAE Electric Vehicle Market (2019-2025)".
The sale of electric vehicles is concentrated in Dubai on account of more than 200 EV charging stations in the region. The growth is attributed to the availability of electric vehicles dealers in the region.
Ravi Bhandari, manager, research and consulting, 6Wresearch, "Passenger cars captured the highest revenue share in the overall UAE electric vehicle market followed by the two-wheeler segment. Electric bus and truck had a non-existent share in the market as the EV models for the same are not yet available in the country."
"The presence of electric two-wheelers is still relatively low as compared to passenger cars in the country. Companies such as Solva Technologies are providing electric two-wheelers in the country; however, the primary consumer base of electric two-wheelers are still corporate-based rather than individual-based," Ravi added.
Prithu Chawla, research associate, research and consulting, 6Wresearch, "UAE recently introduced the electric bus in the Abu Dhabi region, which is still in the test run phase. The future of the electric bus in the country depends on the result of the test runs and the government initiatives towards its adoption."
"The electric trucks were not available in the country as of 2019, however, the Sharjah-based environmental management company named Bee?ah has placed an order for 50 electric trucks of the Tesla Semi fleet. The EV market of UAE is still in the nascent stage and just a few models of EV such as Tesla, Chevrolet Bolt and Renault Zoe are most prominently sold in the country," Prithu said.
Government policies and incentives for electric vehicles, along with the support of government authorities and private companies in developing EV infrastructure would drive the market for electric vehicles in the UAE. Additionally, new models of electric vehicles such as Nissan LEAF and Peugeot are expected to launch by 2020 would contribute to the rise in demand for electric vehicles in UAE, the report said.
Some of the prominent companies in UAE electric vehicle market are Tesla, Inc., Hyundai Motor Company, Volkswagen Motor Company LTM, Bayerische Motoren Werke AG, General Motors Company and Renault.