EV charging in UAE: Will power swap stations rev up sales? China's Nio thinks it will

Dubai: Heading out on the Dubai-Abu Dhabi highway in your EV? And since it was a trip planned without much advance notice, you won’t have time to charge it up?

Don’t worry. Just ‘swap’ the battery. In minutes. Swapping batteries is being lined up to be the next big thing to get EV sales in the UAE all revved up and good to go.  

That’s part of the grand strategy that the Chinese luxury EV maker Nio is putting in place as it targets domination in the UAE and some of the other crucial car markets in the Middle East.

“Our power swap stations take a Formula 1 pit-stop approach for Nio users,” said Roberto Da Silva, General Manager of Nio UAE. “The EV owner prebooks ahead of his arrival at the swap station, goes to a gate and then the power swap happens.

“The car drives itself into the machine – and 3 minutes later you are ready to go. Fully charged.”

The first power swap station of Nio’s was launched in Yas Marina, and a second is due on the Expo road in Dubai. (So, anyone with a Nio gearing up to take on the Dubai-Abu Dhabi rush will have it easy…)

“We are in negotiations to expand the swap station network by another four before the end of 2025,” said Da Silva. “We are tackling the main ‘arteries’ (road networks) to facilitate intra-emirate travel, but at the same time, we are also taking care of the demand in urban areas.

“Let’s say someone staying in Dubai Marina or JLT have no chance of having enough EV chargers to satisfy demand. So, being able to place a power swap station in proximity to such areas is a major benefit.

“EV makers have to tackle the challenge of power availability (on tap). So, what Nio needs to do is to find a suitable area for future power swap stations – and also have enough power on hand to maintain the swap session. It is ultimately a machine that carries 21 batteries – and there has to be enough power for up to 408 power swaps in a day.

“This is essentially a ‘power bank’ that EV makers can plug into when they need a quick turnaround.”

In other words, that’s another worry crossed off for the growing number of EV users in the UAE. Today’s EVs have the range and come to the UAE and Gulf markets after being put through the most rigorous of stress tests in the region’s hottest climes.

Now, with the power swap stations, getting a new charge into an EV too becomes a matter of minutes.   

Nio has done the hard yards ahead of its UAE launch, and which will be followed by others in the region. In the EV space, Nio definitely skews premium. The Nio et5 has a starting price of Dh199,900 (which includes VAT and battery), while the SUV couple Nio ec6 retails from Dh239,900.

“Ahead of the UAE launch, Nio made sure we had the infrastructure to repairs and maintenance,” said Da Silva. “We provide extended (insurance) coverage, brought in the parts supply and only then did we bring in the cars.

“Once we opened the doors to our showrooms, we had 100% robust infrastructure to support the venture in the UAE.”

Da Silva’s emphasis on parts availability and support infrastructure is telling. Because the UAE market and it’s car buyers and motor insurers are still getting used to the cost elements of owning an EV. Especially when it comes to ensuring consistent support from insurers at the time of annual renewals.

Nio’s models have got the bells and whistles to convince buyers.

“We have to end to end technology that will completely redefine what it means to drive an EV,” said Da Silva. “We are very creating our own segment within the premium EV space. That’s what Nio is about…”

And with a little help from the 3-minute power swap stations.