The harmonization of charging fees for electric vehicles has made EV ownership marginally more costly in the country; however, this has not notably dampened consumer interest. Experts predict that demand for EVs is poised to rise in the coming years.
"The UAE's regulation on unified charging fees has actually bolstered demand for EVs," stated Karim Maksoud, Managing Director at Al Habtoor Motors. "With a consistent charging infrastructure across the nation, consumers are now more inclined to explore various EV brands and models. Despite the fees charged by service providers for using public charging stations, consumers still perceive the shift to EVs as a forward-looking and cost-effective choice for the future of the automotive sector."
In August, a UAE cabinet resolution introduced a revised pricing framework for EV charging, mandating a minimum charge of Dh1.20 plus VAT per kWh for 'express' charging and Dh0.70 plus VAT per kWh for 'slow' charging.
Roberto Colucci, Director of AW Rostamani Group Electric Mobility, noted that the presence of charging stations in malls and public areas is a significant factor in the growing preference for EVs. "People are increasingly using destination charging," he said. "They charge their EVs while visiting places like gyms, restaurants, cinemas, or operas. This segment is likely to see the most transformative changes in the coming years."
The UAE government has been proactive in promoting a sustainable automotive sector. With over 30,000 EVs registered in 2023, forecasts indicate that this number could surge to 100,000 by 2025, with the aim of having electric and hybrid vehicles account for over 15% of the total vehicle fleet by 2030. The government's strategic plan includes expanding the EV charging network to 10,000 stations by 2030, with Dubai targeting a complete switch to eco-friendly taxis by 2027.
Chintan Sareen, founder and CEO of PlusX Electric, attributes the company's establishment in the UAE to the nation's "progressive stance on sustainability and innovation." "PlusX Electric was conceived, designed, and manufactured in the UAE to cater specifically to this market," he said. "The UAE's fast-paced lifestyle and emphasis on convenience align perfectly with our portable charger service, which delivers charging solutions directly to customers' doorsteps, allowing uninterrupted daily activities."
Sareen noted that the influx of new EV models, government incentives, and the UAE's commitment to lowering carbon emissions are driving the surge in EV popularity. However, he acknowledged that the rapid adoption of EVs has also brought challenges. "The escalating number of EVs has underscored a critical issue; the charging infrastructure is lagging behind the growing demand," he said. "This gap presents an opportunity for PlusX Electric to offer a solution."
Other challenges include the availability of charging stations in remote areas. "Long-distance travelers may face difficulties finding charging facilities in more remote regions," Karim explained. "Nonetheless, with ongoing technological and infrastructural advancements in the UAE, these challenges are expected to be mitigated, providing a smoother experience for EV users in the near future."
