Turkish President Recep Tayyip Erdogan with TOGG electric car produced in Turkiye.
Turkiye has been leading the Middle East and North Africa and Turkiye (MENAT) region in the usage of Electric Vehicles (EVs) as 40% of the new car owners in the Mediterranean nation embracing EVs as their car of choice, according to a latest report.
The report, released by Red Seer Strategy Consultants, said that EV ownership is higher in Turkiye compared with the UAE and Saudi Arabia due to high consumer awareness and rising fuel prices. However, car buyers in the UAE and Saudi Arabia tend to own multiple vehicles, with a rising interest in EVs as their secondary cars.
“With Turkiye standing out as a unique case, this contrast can be attributed to various factors such as charging infrastructure limitations and range concerns in the UAE and Saudi Arabia, which have led to EVs being predominantly used as secondary cars,” the report noted.
Though there is a higher preference amongst the younger generation, affordability remains a key limitation in markets such as Saudi Arabia and Turkiye.
The report, authored by Red Seer’s Associate Partner Akshay Jayaprakasan, also found that across the MENAT region, EV buyers are predominantly young, trendy, and passionate car enthusiasts. These tech-savvy individuals are driven by a heightened environmental awareness, technological appreciation, and the increasing costs of traditional fuels.
Notably, Turkiye showcases a progressive trend with over 50% of recent EV purchasers being women, signalling a diverse and inclusive market.
“While the UAE has experienced a rise in the adoption of high-end EVs, Turkiye and Saudi Arabia driven by affordability have seen a rise in more value segment cars,” Jayaprakasan said and added that with right policy and infrastructural support, the EV market in MENAT, could capture around 12% of new car sales by 2027.
According to him, the region is on the cusp of a significant transformation in its automotive landscape. With the right policy and infrastructural support, the market is projected to grow its EV penetration 5x by 2027.
This ambitious shift will see the percentage of EVs rise from 2% in 2022 to an impressive 12% in just five years. Policymakers and industry stakeholders are playing a vital role in this transformation by investing in charging infrastructure, providing incentives, and raising awareness among consumers. As these efforts gain momentum, the region has the potential to become a sustainable transportation hub, he said.
The future of the automotive industry in the region is undoubtedly electrifying. As more consumers
embrace EVs, we can expect to witness remarkable changes that will shape a cleaner, greener, and more sustainable future for all.
The driving force behind the car owners in MENAT is attributed to the net zero emissions targets announced by various governments in the region.
While the UAE, which will be hosting COP 28 summit in the Emirates in November this year, has pledged to achieve the target by 2050, Saudi Arabia promised to do so by 2060 and Turkey said it will reach the goal by 2053.
Data from the Turkiye’s Automotive Distributors and Mobility Association (ODMD) showed that some 7,526 battery-power cars exchanged hands during the January-May period this year, and overall vehicle sales in Türkiye achieved their best May and five-month figures ever.
Sales of electric vehicles thus rose by a whopping 326.64% from a year ago, when some 1,764 EVs exchanged hands, the Association said. The UAE plans to have 42,000 EVs by 2030 and Saudi Arabia is pumping billions of dollars to ensure the growth of its EV market.