Rising fuel prices in April, fueled by regional conflict, are prompting UAE consumers to switch to more fuel-efficient vehicles, including hybrids and electric vehicles. According to automotive businesses, customer inquiries for these two vehicle types have steadily increased recently.
Several dealerships have reported a significant increase in interest, particularly for Chinese electric vehicle models. Abhinav Gupta, CEO of Cars24 Arabia, noted a 30% rise in purchase inquiries in Dubai due to escalating fuel prices. This month, gasoline prices in the UAE edged up compared to March, reversing a two-month downward trend. Currently, Super 98 stands at 3,39 dirham per liter (0,92 USD), Special 95 at 3,28 dirham (0,89 USD), E-Plus 91 at 3,2 dirham (0,87 USD), and diesel at 4,69 dirham per liter (1,28 USD).
According to Gupta, the shift towards hybrid and electric vehicles was already underway, but geopolitical tensions and fluctuating fuel prices are accelerating this transition. He stated, "Demand is significantly higher than the same period last year, while fuel cost pressure and energy security concerns continue to provide additional impetus."
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A Toyota Camry hybrid taxi in Dubai, UAE. Photo: Ho Tan |
A Toyota Camry hybrid taxi in Dubai, UAE. Photo: Ho Tan
In Dubai and Abu Dhabi, demand is particularly high among individual customers and businesses operating fleets, with an increase of approximately 15% to 20%. Conversely, gasoline vehicle prices have decreased by about 15%, while electric vehicles have maintained strong pricing, indicating stable demand.
Beyond Cars24 Arabia, numerous other automotive dealerships have also reported increased customer interest and showroom visits surpassing their targets. The iCAUR brand, a subsidiary of Chery, announced that its March retail sales exceeded projections by 115%. Hope Zhang, Director of iCAUR UAE, attributed this trend to consumers' growing focus on fuel efficiency and long-term operating costs. He stated, "Customers are carefully weighing daily usage needs against long-term expenses. Hybrid and extended range electric vehicle (EREV) models are favored as they provide a practical transition to sustainable transportation."
Andreas Schaaf, CEO of Geely Group Brands in the UAE, noted a growing interest in plug-in hybrid and pure electric vehicles. He believes this signifies more than a short-term reaction to market fluctuations; it reflects a long-term change in UAE consumer expectations.
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The Chinese pure electric vehicle Xiaomi SU7 in Dubai. Photo: Tien Dat |
The Chinese pure electric vehicle Xiaomi SU7 in Dubai. Photo: Tien Dat
This trend is also evident at the Al-Futtaim Lexus dealership. Jacques Brent, Managing Director of Al-Futtaim Lexus UAE, reported a steady increase in demand for hybrid vehicles in recent months. This indicates that consumers are gradually altering their vehicle choices in response to current market conditions.
By Ho Tan (Source: Khaleejtimes)
