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Will More UAE Car Buyers Shift to EVs as Prices Drop to Dh100,000 – or Even Dh85,000?

Car buyers in the UAE are increasingly drawn to electric vehicles (EVs) as models priced at or below the critical Dh100,000 mark enter the market. Some options are even available at Dh85,000, making EVs more accessible than ever. These budget-friendly offerings are gaining attention for their appealing designs and promising performance.
Affordable-Models

Affordable Models Drive Interest in UAE’s EV Market

Car buyers in the UAE are increasingly drawn to electric vehicles (EVs) as models priced at or below the critical Dh100,000 mark enter the market. Some options are even available at Dh85,000, making EVs more accessible than ever. These budget-friendly offerings are gaining attention for their appealing designs and promising performance.

Dealerships have reported a noticeable surge in interest, with December shaping up to be one of the strongest months for EV sales in the UAE.

“It’s easy to sell models priced above Dh150,000 in a market like the UAE, whether it’s a fuel-driven car or an EV,” said a dealer. “But for the EV market to expand, entry-level models needed to hit the Dh100,000 price point – which is now happening.”

Entry-Level EV Prices Drop Below Dh100,000
Sebastian Fuchs, Managing Director of AutoData Middle East, highlighted the growing affordability of EVs in the region.

“Electric vehicle prices in the UAE now start as low as Dh85,000 for Chinese brands like BYD Qin Plus and JAC E30X, making them the most affordable,” said Fuchs. “For non-Chinese brands, entry-level models such as the Kia EV5 typically begin at Dh100,000. There’s a clear price gap between Chinese and non-Chinese offerings.”

This pricing shift could accelerate sales growth in 2025, especially for entry-level EVs. However, industry experts emphasize two key factors for sustained growth: affordable pricing and extended after-sales support.

Sales Growth and After-Sales Support
New car sales in the UAE are projected to exceed 300,000 units in 2024, with EVs accounting for approximately 10% of the total. This includes EVs purchased by fleet operators.

“Since UAE EV buyers don’t benefit from tax credits or similar incentives, manufacturers and dealers should focus on offering extended after-sales coverage,” said a dealer. “It’s likely we’ll see standard 5-year coverage for new EVs, with options to extend further.”

Expanding Options in the UAE Market
The UAE’s EV market now offers more choices than ever. Buyers seeking high-end alternatives to Tesla can look to brands like Lucid, backed by Saudi Arabia’s Public Investment Fund (PIF). Lucid recently opened its first direct-to-consumer showroom in Dubai, with deliveries of the Lucid Air – starting at Dh299,000 – beginning soon.

As more affordable models hit the market and after-sales incentives improve, the UAE’s EV market is poised for significant growth heading into 2025.

Published: December 5, 2024 | Gulf News

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