Electric Car Sales Increase by 13% in UAE in 2023

The share of electric car sales in the UAE was 13% of the total car sales in 2023 as the government has been encouraging the use of electric cars as part of its plans to reduce carbon emissions, according to data from the UAE’s Ministry of Energy and Infrastructure.

The UAE seeks to be at the forefront of countries adopting clean technology in the transportation sector, and to achieve it, the government has launched many initiatives through various government and private entities to encourage customers to purchase electric cars, setting up more EV charging stations, viable costs in charging electric cars, free parking in some areas, in addition to easy interest on bank loans when purchasing such cars.

Various studies confirmed that the UAE’s initiatives to accelerate the deployment of EV charging infrastructure and the adoption of electric vehicles are proceeding rapidly, contributing to the country achieving its goals in the field of electric mobility.

Mordor Intelligence Research estimates that the UAE’s hybrid and electric vehicle market is expected to reach $1.34 billion in 2024 and $5.19 billion by 2029, at a CAGR of 31.1% during the forecast period from 2024 to 2029. According to Market Advisors, the electric vehicle market in the UAE is expected to grow at a CAGR of around 28.5% during the forecast period 2024-2030.

In turn, the Inter Regional Centre for Strategic Analysis said that the electric car market in the UAE is heading towards significant growth over the next few years, at a time when the UAE is moving forward with launching investment projects to produce electric cars locally, in line with the national policy for electric vehicles, which aims to increase the percentage of these vehicles in the country to 50% of the total vehicles by 2050.

PricewaterhouseCoopers (PwC), a multi-national professional services brand of firms, expects the share of electric vehicles in the UAE to increase to 15% (58,000 vehicles), of new passenger car and light commercial vehicle sales by 2030, and increase to 25% (110,500 vehicles), by 2035.

PwC also said that Dubai Electricity and Water Authority (DEWA) was leading the transition to clean energy, with the aim of increasing the network of public green charging stations in the city by 170%, from 370 stations in 2023 to 1,000 by 2025.

Steady Growth

According to the Ministry of Energy and Infrastructure, the electric vehicle market is growing steadily, with plans to increase the share of electric and hybrid vehicles to 50% of the total vehicles on the country’s roads by 2050.

The Ministry said that the share of electric and hybrid cars reached 3%, while electric vehicle sales last year amounted to 13% of total car sales in the country during the past year.

Through the Emirates Vehicle Charger Company, the ministry aims to install about 100 charging stations during the current year, with expectations of installing more than 1,000 chargers by 2030.

Dubai also launched the “Clean Energy Strategy 2050” and the “Green Mobility Strategy 2030,” including the Green Charger Initiative for Electric Vehicles, to expand the electric vehicle charging network and encourage the use of pure electric and hybrid vehicles throughout Dubai.

DEWA said that sale of electric vehicles in Dubai have witnessed a significant increase, with their number in the emirate reaching more than 30,000 by end of April this year.