Will more UAE car buyers switch to EVs as prices start at Dh100,000? Even Dh85,000?
Rush on to introduce models priced at critical Dh100,000 price point - even much lower
Dubai: Car buyers in the UAE are starting to see EV model and pricing options at or around the crucial Dh100,000 mark – and even lower than that. And more of them are convinced about the looks and promised performance of these more budget-friendly electric vehicles.
Dealerships says that recent weeks have seen a clear spike in prospective buyers checking out EV models, with this December likely to record one of the best months for EV sales in the UAE market.
“It doesn’t take much to sell a Dh150,000 plus model in a market like the UAE, whether it’s a fuel driven car or an EV,” said a dealer. “But if the size of the EV market has to grow, entry level model prices had to start somewhere around Dh100,000 – that’s what’s being seen now.”
Sebastian Fuchs is Managing Director of AutoData Middle East and he broadly agrees with that sentiment. He says the entry level prices are now even lower than Dh100,000.
“Electric vehicle prices in the UAE now starts at Dh85,000 for Chinese brands like BYD Qin Plus and JAC E30X, making them the most affordable,” said Fuchs. “(When it comes to) non-Chinese brands, models such as Kia EV5, typically begin at Dh100,000.
“There is a clear pricing distinction between Chinese and non-Chinese offerings.”
Heading into 2025, this could be one sub-category within the wider UAE auto market that could put in some sharp growth in sales. But industry sources say there are two key requirements for sales growth to pick up speed – one, an affordable entry level and, two, support EV buyers with extended after-sales period.
Sales of AVATR in July 2024 in China reflected a 167% y-o-y increase from 2023, which was the launch year for the brand
New car sales in the UAE should cross 300,000 units this year, with EV sales making up 10% or thereabouts. That would include the EVs sold to the various fleet operators in the country.
Affordable prices, extra after-sales incentives
“Because UAE EV buyers do not get tax credits or other similar breaks, the after-sales focus should be on offering an extended coverage,” said a dealer. “It will be no surprise if new EV owners get a 5-year coverage as standard, and then it’s up to the manufacturers and dealers to add more years.
“I think a lot of dealerships are getting around to that.”
Chinese automakers are setting the pace for affordability in the EV segment, offering models that start at just Dh85,000
Whatever be the case, the EV market in the UAE has opened up in choices like never before. For someone looking to a top-of-the-range option that’s not a Tesla, there is the Saudi PIF backed Lucid. The company has already set up its first direct-to-consumer retail outlet in Dubai, and with the first deliveries of its first model, the Lucid Air, set to start soon. (Prices start Dh299,000.)
Now comes the AVATR
The Chinese premium EV maker has just introduced two models in the UAE, the AVATR 11 SUV and AVATR 12 Gran Coupe (both starting Dh250,000). “The Avatr 11 is currently available and the Avatr 12 is on pre-order,” said Peyman Kargar, Board Member of Smart Mobility International, the UAE importer. “The priority for the brand is to create the first and best luxury EV product and ownership experience.”
Brand AVATR shot into global prominence through its affiliation with Chinese tech giant Huawei for the the domestic market. The UAE and GCC-spec vehicles have communications system provided by another Chinese tech major, Lenovo, while the in-vehicle entertainment system is developed by AVATR.
The brand sure seems intent on going the distance when it comes to incentives. The sales will be backed by dealership financing – and extended insurance. Plus, there will be extended warranties.
when it comes to the battery, the Avatr models come with 8-year unlimited kilometer warranty, and on the vehicle itself, the coverage will be 5 years and unlimited warranty.
“The UAE EV market is diversifying to offer options at more accessible price points,” said Fuchs. “Chinese automotive brands, in particular, are playing a pivotal role in driving affordability and innovation, alongside a growing presence of global players.”