The United Arab Emirates (UAE) is witnessing a significant surge in the popularity of electric vehicles (EVs) as online searches for electric cars have skyrocketed by 60% in the first half of 2023 compared to the second half of 2022, according to the CARS24 Used Car Market Insights H1 2023 Report. This growing interest in EVs aligns with the UAE’s commitment to promoting electric mobility, as demonstrated by Dubai’s plans to expand its electric charging station network by 170% by 2025. As infrastructure and fuel prices improve, more drivers in the UAE are considering making the switch to electric vehicles, contributing to the rising demand.
The Rise of Electric Vehicles in the UAE
Electric vehicles currently account for just over 1% of the UAE car market. However, the rapid increase in online searches indicates a strong inclination among car buyers to explore electric options. The surge in demand is driven by various factors, including rising fuel prices and growing environmental awareness. Consequently, the UAE government’s vision for a sustainable future with a lower carbon footprint has led to increased investment in EV-supportive infrastructure across the country.
Abhinav Gupta, Gulf CEO at CARS24, explains, “Increasing fuel prices and awareness about environmental impact have amped up the demand for electric cars, with sales expected to reach 15.07k vehicles in 2027. This growth, coupled with the UAE’s vision towards a sustainable future with a low carbon footprint, has seen a rise in EV supportive infrastructure in the country.”
Used Car Market’s Growing Strength
Apart from the surge in electric vehicle searches, the CARS24 report also sheds light on the strength of the UAE used car market. For every new car sold in the UAE, three pre-owned vehicles are purchased, highlighting the increasing popularity of pre-owned cars. The UAE’s growing population, currently estimated at around 10.2 million people, has contributed to the rising demand for vehicles, and subsequently, the pre-owned car market has witnessed substantial growth.
Notably, the report shows a notable rise in millennial car buyers (aged 25-44) in the first half of 2023, indicating that young consumers are becoming more conscious of the costs associated with owning a new car. Budget considerations and trust in auto retailers have become key factors influencing their decision to opt for pre-owned vehicles.
“The UAE is one of the most dominant markets, and the country’s pre-owned car category is expected to surpass a net valuation of USD 28.98 billion by the end of 2027,” says Gupta. “This segment is competitive but cluttered, and we assessed that there was a big gap in the region for a brand that operated as a one-stop shop for customers. With trust, service, and quality being imperative, we created our ethos around these crucial drivers to elevate the entire journey of the ownership.”
Increasing Interest from Women Drivers in Pre-Owned Cars
In addition to the rise in electric vehicle searches and the growing strength of the used car market, the CARS24 report also highlights the increasing interest of women drivers in purchasing pre-owned vehicles. The number of female buyers on the CARS24 platform rose by 15% in the first half of 2023, outpacing the 13% rise in male buyers.
Popular Brands and Models
According to the report, Toyota and Nissan remain the most sought-after brands among car buyers in the UAE. The Toyota Yaris stands as the most favored model, followed closely by the Nissan Patrol and Nissan Sunny.
Also Read: Volvo Introduces The All Electric VOLVO EX30
As the UAE progresses toward a greener and more sustainable future, its motorists are showing a clear inclination to switch to electric vehicles. The surge in online searches for EVs, the increasing popularity of pre-owned cars, and the rising interest of women drivers in the automotive market all signal a paradigm shift in the UAE’s automotive landscape.
With the UAE government’s commitment to expanding EV charging infrastructure and the improving market conditions, the country is set to witness further growth in electric mobility. As car buyers embrace the value and benefits of pre-owned vehicles, the used car market is expected to continue thriving.
As the automotive industry in the UAE evolves, CARS24 aims to meet the demands of its customers by providing full-stack EV solutions, from procurement to refurbishment. By leveraging data-driven insights, trust, impeccable service, and quality, CARS24 endeavors to remain at the forefront of this transformative market, contributing to an enhanced ownership experience for all car buyers in the UAE.
- automotive industry
- automotive landscape
- automotive trends
- carbon footprint
- data-driven business
- electric mobility
- electric vehicles
- environmental awareness
- EV charging infrastructure
- female drivers
- green transportation
- market insights
- millennial car buyers
- online searches
- pre-owned cars
- rising fuel prices
- sustainable future
- UAE car market
- UAE motorists
- used car market