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UAE car buyers shift to EVs amid rising fuel costs

Consumer preferences in the UAE automotive sector are increasingly tilting towards electric and hybrid vehicles, as higher fuel prices reshape purchasing decisions and drive demand for more cost-efficient options.

Recent data from Dubizzle Group shows a notable rise in interest in electric vehicles (EVs), with engagement climbing by 24% in the first week of April. This significantly outpaced the 5% growth recorded across petrol and diesel segments, suggesting a deeper shift in how buyers are evaluating vehicle ownership.

The trend reflects a broader move towards long-term value, with consumers placing greater emphasis on efficiency and running costs rather than solely focusing on upfront pricing. Buyers are also spending more time researching options, including comparing listings and saving searches, indicating a more considered and data-driven approach to purchasing.

Electric vehicles are gaining traction across a range of brands, including Tesla, BYD and Xiaomi. This growing diversity highlights a shift away from traditional brand loyalty, as consumers become more open to newer entrants offering advanced technology and improved efficiency.

At the same time, hybrid vehicles continue to attract strong interest, recording growth of around 8%. These models appeal to buyers seeking a balance between fuel savings and practicality, particularly those not yet ready to transition fully to electric mobility.

Market dynamics are also evolving across price segments. While higher-value vehicles have seen a rebound of up to 23%, demand remains particularly strong in more affordable categories. Interest in vehicles priced below AED100,000 has increased, reflecting a broader trend towards value-driven decision-making.

Brand preferences are shifting as well, with Japanese and Chinese manufacturers gaining ground and surpassing German brands in terms of engagement by the end of March. This points to a growing preference for cost-effective and efficient vehicles in the current market environment.

Haider Khan, CEO of dubizzle and CEO of Dubizzle Group MENA, said the shift is being accelerated by external pressures. “Rising fuel costs are reinforcing a transition that was already in motion,” he said. “Consumers are now prioritising vehicles that offer long-term efficiency and better cost control. Electric and hybrid models are no longer niche—they are becoming central to how value is defined in today’s automotive market.”

As fuel price volatility continues, the data suggests that electric and hybrid vehicles are moving into the mainstream, shaping the next phase of growth in the UAE’s automotive sector.