Dubai: The gradual winding down of subsidies on petrol could yet be the tipping point for vehicle owners in the UAE to make a move towards hybrids and even all-electric models. If so, the first glimpses of a future beyond petrol is finally being sighted on the horizon.

But a perfect storm building up for diesel-powered vehicles as an alternative to petrol is quite remote, industry sources say. “Diesel vehicles if they are to be introduced here in greater numbers will need to conform to at least the Euro 5 or Euro 6 emission standards,” said Axel Dreyer, President for the Hyundai division at Juma Al Majid Est. “That has to be bare minimum standard from an environmentally conducive perspective at this moment in time. And the UAE has been very clear about where it stands on the environment.

“It may be possible to effect a higher emission standard in the UAE, but it may not be feasible for the other Gulf markets.

“That being the case, it’s unlikely that a market will exist for diesel vehicles even if fuel subsidies were to go. For manufacturers it’s too small a market to address.”

Skipping diesel and heading straight for hybrids and electric could then be the best option. A marker has been laid by Toyota confirming the availability of its bestselling hybrid, the Prius, in the UAE from next year. It is a model that has sold 3.5 million vehicles since 1998. “No manufacturer is going to launch a model just to make a point,” said Saud Abbasi, Managing Director at Al-Futtaim Motors and the Toyota dealer. “We are finally convinced that a market will build for hybrids in the UAE… it’s only a question of when.”

Challenge

According to Michel Ayat, CEO at Arabian Automobiles Co, even electric can light up the UAE’s car scene. “If certain conditions are met, there’s no reason why a full-electric model can’t sell here. There’s a definite push from the top - Dewa (Dubai Electricity & Water Authority) is building charging stations, and vehicles are being built with longer running distances.

“The only challenge remains the high cost of electric vehicles.”

According to Ayat, this is where the local authorities can provide some sort of incentives. “If the import duty is done away with on electric cars and if future owners can – for instance - be offered Salik-free rides, it can be a great marketing tool,” he added.

“On top of that, as in Europe or the US, if the government can offer a sizable monetary incentive it will be just prod to get buyers interested.

“If everything comes together, we could even be talking about 10,000 electric vehicles in Dubai by 2020.”

Now, that’s a number which can be just the “charge” to get electric cars going.