UAE on track to boost EV penetration target

UAE on track to boost EV penetration target

UAE EV market is expected to grow at a CAGR of around 28.5% during 2023-28 period

For EVs (electric vehicles) and hybrid buses, the target is to grow the share from 3.2 per cent to 14 per cent over the same period. — KT file

Published: Sun 23 Jul 2023, 4:00 PM

The UAE is broadly on track to reach its interim targets in the e-mobility space by increasing the share of electric and hybrid vehicles in its domestic fleet from 4.0 per cent in 2023 to 13 per cent in 2030.

For EVs (electric vehicles) and hybrid buses, the target is to grow the share from 3.2 per cent to 14 per cent over the same period. “This is consistent with our own bullish outlook on the market, which sees a wealthy consumer base, the development of local and regional EV manufacturing industries and continued government support drive up EV sales over our 10-year forecast period,” BMI – a Fitch Solutions Company, said in a research report.

In the near term, the increased availability of Japanese-branded non-EVs and mild-hybrids will weigh on growth. But this will largely be offset by wider access to affordable Chinese-sourced EVs. In the longer term, increased domestic manufacturing capacity