Market Trends of GCC Electric Vehicle Industry
This section covers the major market trends shaping the GCC Electric Vehicle Market according to our research experts:
Heavy Investments by Automakers for Electric Vehicles
Heavy investments from automakers are expected to cater to the growing demand for EVs and play a major role in the evolution of the electric vehicle market. OEMs offer electric vehicles in different segments ranging from hatchbacks such as Nissan Leaf to high-end sedans like Tesla Model 3. For instance,
- In March 2022, the German-Engineered Volkswagen Group agreed one million dollar investment with Qatar to further develop the Gulf nation's charging infrastructure. It's hoped the deal will encourage clean and sustainable mobility.
- In May 2022, Schneider Electric Saudi Arabia and GREENER by IHCC signed a partnership agreement to develop e-mobility infrastructure in the Kingdom's nascent and fast-growing electric vehicle (EV) sector.
Friendly Government Policies Favors the High Market Demand
The government is introducing several programs and initiatives to promote green mobility across the country as transportation plays a crucial role in lowering the carbon footprint. The programs aim to provide public transportation systems and encourage consumers to shift towards natural gas, hydrogen, and electricity-based vehicles.
The Emirate of Dubai has introduced its Green Building Regulations and Specifications for new buildings through Dubai Municipality, which specifies that 5% of parking spaces should be dedicated to green or low emission vehicles.
The UAE boasts of the presence of one of the largest numbers of charging stations and are working to increase the number of charging stations. The Dubai Electricity and Water Authority launched an initiative called the 'Green Charger' initiative to build charging stations in Dubai to support the Dubai Green Mobility Strategy 2030. The incentives offered by the government and various financial institutions are encouraging the import of electric vehicles into the country. The high support from the government in the form of favorable government policies is expected to bolster the sales of electric vehicles for the next five years.
