'Cheaper To Run EV Than Car': UAE Experts Bust Myths On Electric Cars Khaleej Times

(MENAFN- Khaleej Times)

The‭ ‬UAE wants half of the cars on its road to be electric by 2050‭ ‬-‭ ‬but by 2030‭, ‬researchers at PwC estimate that only 15‭ ‬per cent of vehicles are expected to be EVs‭. ‬“That is definitely a stretched target‭,‬”‭ ‬said Heiko Seitz‭, ‬Global‭ & ‬Middle East eMobility leader at PwC Middle East‭, ‬adding that without regulation changes‭, ‬the 2050‭ ‬target is‭ ‬“basically impossible”‭.‬

If only 15‭ ‬per cent of cars on UAE roads are electric by 2030‭, ‬the country will need to more than triple that number in just two‭ ‬decades‭ ‬-‭ ‬cranking up EV adoption by 1.75‭ ‬percentage points every year‭ ‬-‭ ‬to hit its 50‭ ‬per cent target by 2050‭.‬

EVs made up just six per cent of new car sales in the UAE last year‭ ‬-‭ ‬double from three per cent the year before‭. ‬The country's EV market is projected to reach‭ $‬16.3‭ ‬million by 2030‭, ‬yet adoption isn't accelerating fast enough to match its long-term ambitions‭.‬

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Hoping to accelerate adoption‭, ‬the UAE has introduced incentives designed to make EV ownership more enticing‭. ‬Dubai‭, ‬in particular‭, ‬has taken its own approach to push more drivers toward EVs‭. ‬To meet its goal of having 30‭ ‬per cent of the city's cars electric by 2030‭, ‬the Roads and Transport Authority‭ (‬RTA‭) ‬allocated free parking spaces for EVs in various lots for two-year periods‭. ‬The RTA also grants a free Salik tag upon vehicle registration‭. ‬If EV drivers were registered with the Dewa EV Green Charger Initiative‭, ‬they could previously charge their cars for free‭.‬

While government incentives are a good start‭, ‬they're not enough to spark a full-blown EV revolution‭. ‬Seitz says the EV adoption lag in the UAE can be dumbed down to three fundamental issues‭ ‬-‭ ‬a gap in ‭ ‬consumer education‭, ‬availability of charging infrastructure‭, ‬and availability of electric models in the market‭.‬

“If we put an EV lane on Sheikh Zayed Road that is only dedicated for electric cars‭, ‬call it the leftmost lane‭, ‬I definitely think there's going to be a lot of EV demand‭,‬”‭ ‬said Kevin Chalhoub‭, ‬founder and CEO of EV Lab‭. ‬

The UAE has taken a market-driven approach to EV adoption‭, ‬banking on demand to grow naturally rather than enforcing strict policies‭. ‬“The country believes in organic markets that are not artificially created because organically grown markets are usually stronger‭,‬”‭ ‬Seitz said‭. ‬

Meanwhile‭, ‬instead of letting EV adoption unfold naturally‭, ‬Saudi Arabia is putting money and mandates behind the transition‭. ‬The government has laid out clear policies‭, ‬invested heavily in infrastructure‭, ‬and set firm EV quotas for fleets‭. ‬It's also backing the development of an entire EV ecosystem‭ ‬-‭ ‬from manufacturing to charging networks‭ ‬-‭ ‬so that supply can grow alongside demand‭. ‬By 2030‭, ‬electric cars are expected to account for over 30‭ ‬per cent of new light-duty‭ ‬vehicle sales in Saudi‭. ‬By 2035‭, ‬that number is set to pass 60‭ ‬per cent‭.‬

A big part of the problem is that many drivers still don't know enough about EVs‭ ‬-‭ ‬how they work‭, ‬what they cost long-term‭, ‬or whether they can handle road trips outside the city‭. ‬The UAE government doesn't just need to set goals‭ ‬-‭ ‬it needs to push automakers to step up‭, ‬run serious education campaigns‭, ‬and make the EV transition feel like an obvious choice‭, ‬not a gamble‭. ‬“ There can always be more supportive policies‭. ‬But all in all‭, ‬I think consumer education is important‭, ‬and that's what we're trying to solve‭,‬”‭ ‬Chalhoub said‭. ‬EV Lab‭, ‬tucked away in the same plaza as Dubai's World Trade Center‭, ‬gives customers a hands-on shopping experience‭ ‬-‭ ‬letting them explore curated EV models‭, ‬take test drives‭, ‬and walk away with a lease or purchase‭. ‬The cars come from all over‭ ‬-‭ ‬shipped in from the US‭, ‬Europe‭, ‬and Asia‭ ‬-‭ ‬with rental prices ranging anywhere from Dh2,000‭ ‬to Dh18,000‭ ‬a month‭.‬

“ You have a better product‭, ‬cheaper overall with the total cost of ownership‭. ‬Not a lot of people know that‭,‬”‭ ‬Chalhoub said‭.‬

A study published in‭ ‬Sustainability‭ ‬found that while drivers across all income levels are drawn to EVs for their fuel savings‭, ‬higher-income buyers focus more on saving on maintenance costs than the hefty upfront price tag‭. ‬Interest in EVs is strongest in Dubai and Abu Dhabi‭, ‬where charging‭ ‬stations are easier to find‭, ‬but drop off in less populated emirates like Ras Al Khaimah and Umm Al Quwain‭. ‬Without policies tailored to these areas‭, ‬the shift to electric mobility risks leaving rural drivers in the dust‭.‬

“A car might come up a bit more expensive up front‭, ‬but in reality‭, ‬the total cost of ownership is much less‭. ‬You have 10‭ ‬times fewer spare parts on average in electric cars‭. ‬So‭, ‬your service fees and after-sales service fees are much‭, ‬much less‭,‬”‭ ‬Chalhoub said‭. ‬“ You're paying between one-third and one-sixth of the price per kilometre driven than you are for petrol‭. ‬So‭, ‬you're saving up a lot actually by choosing an electric car even with no further governance incentives‭.‬”‭ ‬

Other countries have already taken aggressive steps to make EVs more affordable‭. ‬In the Netherlands‭, ‬for example‭, ‬fully electric‭ ‬cars are exempt from registration taxes until 2025‭, ‬and road taxes are waived or reduced for plug-in hybrids‭. ‬Private buyers can also qualify for direct purchase subsidies‭ ‬-‭ ‬€2,000‭ ‬for a used EV or nearly‭ ‬€3,000‭ ‬for a new one‭.‬

“It's much cheaper to run an EV compared to a traditional car and now the ticket price is also going down significantly‭. ‬We really see that owning an electric vehicle will very soon be significantly cheaper‭,‬”‭ ‬Seitz said‭.‬

Part of consumer education is also alleviating range anxiety‭, ‬which Seitz describes as‭ ‬“the fear of running out of electricity on the road and being stranded”‭. ‬This isn't an issue with petrol engine cars because of the wide availability of gas stations‭, ‬he added‭. ‬“How far does my battery bring me‭? ‬How fast can I charge‭?‬”‭ ‬These are valid questions consumers have today‭, ‬Seitz said‭.‬

Range anxiety isn't just a perception problem‭ ‬-‭ ‬it's a real concern when charging stations are few and far between‭. ‬PwC projects that by 2035‭, ‬the UAE will have just 10,000‭ ‬charge‭ ‬points‭. ‬Currently‭, ‬the UAE has only about 2,000‭ ‬public charging stations‭, ‬with most of them being in Dubai‭, ‬and more than half‭ ‬of them are slow chargers‭, ‬according to PwC‭. ‬

Charging is so much cheaper and more readily available than people would think‭. Most people who own an electric car don't necessarily charge on public chargers‭, ‬right‭? ‬They'll have one in their apartment building‭, ‬in their villa‭, ‬or at work‮...‬‭ ‬It's easy to install in a villa‭. ‬You don't need to charge it more than once a week‭, ‬maybe twice‭."‬

Kevin Chalhoub‭, ‬Founder And Ceo, Ev Lab‭

Through the EV Green Charger Initiative‭, ‬the Dubai Electricity and Water Authority‭ (‬DEWA‭) ‬analyses usage data‭, ‬population density‭, ‬and real estate developments to determine where new stations should go‭. ‬Saeed Mohammed Al Tayer‭, ‬CEO of DEWA‭, ‬said one of the‭ ‬biggest early hurdles was adapting charging infrastructure to the UAE's extreme heat and dust-conditions most chargers weren't originally built to handle‭. ‬Despite the challenges in expanding charging infrastructure‭, ‬usage continues to grow‭. ‬“DEWA's EV Green Charger initiative has seen significant growth‭, ‬with a 50‭ ‬per cent annual increase in usage of EV Green Charger services in 2024‭, ‬indicating its success in promoting green mobility in Dubai‭,‬”‭ ‬Al Tayer said‭. ‬Meanwhile‭, ‬Adnoc and Taqa have set their sights much higher‭, ‬aiming to install 70,000‭ ‬charging stations by 2030‭.‬

Requiring new construction projects‭, ‬commercial and residential buildings‭, ‬parking lots‭, ‬and highways to include EV charging stations would help expand infrastructure and make charging more accessible‭. ‬“ If you live in an apartment in a tower‭, ‬you depend on public charging and there is at this point simply not enough charging infrastructure out there‭,‬”‭ ‬Seitz said‭.‬

Chalhoub looks at the issue differently‭. ‬“ Charging is so much cheaper and more readily available than people would think‭,‬”‭ ‬he said‭, ‬arguing that‭, ‬“most people who own an electric car don't necessarily charge on public chargers‭, ‬right‭? ‬They'll have one in their apartment building‭, ‬in their villa‭, ‬or at work‮...‬‭ ‬It's easy to install in a villa‭. ‬You don't need to charge it more than once a week‭, ‬maybe twice‭.‬”‭ ‬

The EV Lab founder argues it is a matter of pushing your apartment building management or employer to install chargers where your‭ ‬car is already going to be parked most of the time‭. ‬While expanding the public charging network will help ease range anxiety‭, ‬he points out that most EVs on the market today can handle a round-trip commute to Abu Dhabi without needing a charge‭. ‬“ It's just 150km away at most‭, ‬so you can go back and forth with no problem‭. ‬So‭, ‬range anxiety is much less of an issue here than anywhere in the world‭,‬”‭ ‬Chalhoub said‭. ‬

Some car companies‭, ‬like Tesla‭, ‬have taken it upon themselves to deploy their own charging stations throughout the UAE‭, ‬which allows the American carmaker to continue to dominate the UAE's EV market due to its strong brand recognition and reputation for reliability‭. ‬PwC says it has a stronghold on 55‭ ‬per cent of EV sales‭. ‬It is the default choice for early adopters‭, ‬thanks to its brand power‭, ‬long range‭, ‬and exclusive Supercharger network‭ ‬that gives it a serious edge‭. ‬But Tesla's monopoly isn't as firm as it used to be‭ ‬-‭ ‬other players are starting to creep in‭. ‬Chinese automakers‭, ‬especially BYD‭ ‬-‭ ‬which is seen throughout Uber fleets in the UAE‭ ‬-‭ ‬are making moves‭. ‬“Overall‭, ‬the Chinese share of electric vehicles offered in UAE‭, ‬just like anywhere else in the world‭, ‬by the way‭, ‬is massively increasing‭,‬”‭ ‬Seitz said‭.‬

“The whole market is at an intersection‭,‬”‭ ‬Chalhoub said about EV car manufacturing‭. ‬“ New brands that are trying to disrupt the incumbents‭.‬”‭ ‬While he argues Chinese brands will always have something exciting to offer‭, ‬“ there's also going to be an appetite for German brands‭, ‬some American brands like Lucid Motors‭, ‬Rivian”‭. ‬

The UAE has big EV ambitions‭, ‬but there's one major gap‭ ‬-‭ ‬it doesn't make its own electric cars‭. ‬While the UAE government has invested in some brands like Nio‭, ‬right now‭, ‬the market is entirely dependent on imports‭. ‬Having EV production within the country is a game changer‭, ‬Seitz said‭. ‬It's a gateway to incentivise adoption financially‭ ‬-‭ ‬governments can have more leeway in waiving certain taxes and fees‭, ‬making locally produced EVs more affordable‭. ‬“Subsidies cost a lot of money‭,‬”‭ ‬Seitz said‭. ‬Building electric cars on UAE soil wouldn't just cut costs‭ ‬-‭ ‬it would bring in investment‭, ‬create jobs‭, ‬and give the country greater control over its own market and sustainability goals‭. ‬“It's a natural accelerator‭,‬”‭ ‬Seitz said‭.‬

At its core‭, ‬the UAE's EV push isn't just about boosting the auto industry and stirring the economy‭ ‬-‭ ‬it's about sustainability‭. ‬“I'm part of the generation that grew up with climate change being an issue‭,‬”‭ ‬Chalhoub said‭. ‬“Now we're in our 30s‭, ‬and it's still an issue‭. ‬Hopefully‭, ‬we're here to solve it‭.‬”

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