In an exclusive interview with Hasan Nergiz, Managing Director of Al-Futtaim Electric Mobility Company, he explains the transformative trends shaping the electric vehicle (EV) markets in the UAE and Saudi Arabia (KSA).
As environmental consciousness rises and governments champion green initiatives, the region is witnessing a rapid shift towards electric mobility. Nergiz shares insights on current trends, including the expansion of charging infrastructure and the introduction of innovative models like BYD’s plug-in hybrids.
He highlights the strategic vision driving this electrification wave, aligning with Saudi Vision 2030, underscoring the commitment to sustainable transportation solutions.
With advancements in battery technology and competitive offerings, the potential for growth in the EV market is immense. Join us as we explore the exciting journey towards a greener future in the Middle East.
Could you please elaborate on the prevailing trends in the electric vehicle (EV) market within the UAE and KSA? What are your projections regarding future trends in these markets?
The EV market in the UAE and KSA has been growing at a robust pace, driven by increasing awareness of environmental sustainability and numerous government initiatives promoting the green transition. Improvements to the charging infrastructure and the introduction of more affordable models are significantly boosting the adoption of EVs. For instance, BYD launched in the UAE last year and has already sold over 1,000 cars.
Looking ahead, we can anticipate the continued expansion of public charging networks across the region and more government initiatives to encourage the electrification of public transportation and government fleets. More EV models are becoming available in each country across diverse price points and performance capabilities, from sedans to SUVs, making electric vehicles a more practical and preferable choice for diverse customers.
We also foresee faster and stronger adoption of plug-in hybrid vehicles within the region as the infrastructure for electric charging evolves and customers gradually get accustomed to charging habits and the EV mindset. This is one of the primary reasons we have added two plug-in hybrids to the BYD line-up in the UAE and KSA. PHEVs offer up to 1000 km autonomy, providing an easy-to-digest green mobility experience and the perfect springboard to accelerate the transition towards an all-out electric shift.
On the technology front, we are seeing enhanced battery efficiencies with extended ranges and faster charging capabilities coming into play. The advancement of technology not only helps manufacturers but also benefits customers as technology becomes cheaper over time and easier to roll out across diverse model options. BYD’s vertical integration allows us to lower costs by producing more than 75% of our components internally, including the battery, engine, and connectivity systems, which is crucial for making EVs as affordable as ICE vehicles.
The shift to electrified mobility aligns strongly with Saudi Vision 2030, which prioritizes sustainability and technological advancement. The goal is to establish a robust EV charging network with over 5,000 fast chargers in more than 1,000 locations throughout KSA, significantly reducing range anxiety. As these developments take place, the potential for growth in the EV market within the UAE and KSA is immense.
How has consumer demand for electric vehicles evolved within the UAE and KSA in recent times?
Consumer demand for EVs in the UAE and KSA has seen a substantial increase in recent years. This change is driven by several factors, including rising environmental consciousness, government policies incentivizing EV purchases, improvements in charging infrastructure, and the entry of high-quality EV models that cater to diverse consumer preferences. Additionally, the decreasing total cost of ownership for EVs compared to traditional vehicles has made them more attractive.To put it in context, the 2024 International Electric Vehicle Consumer-Sentiment Survey found that 71% of Saudi Arabian drivers are either “very” or “moderately” likely to purchase a BEV this year. This figure is expected to rise to 85% by 2035, far outpacing the current BEV purchase intentions in the US and Europe, which stand between 35% and 43%.
The Total Cost of Ownership (TCO) for EVs is lower due to affordable driving and maintenance costs, along with innovative financing options, making them more appealing to consumers.
Could you highlight any recent innovations introduced in BYD’s electric vehicle models that hold particular relevance and appeal for the UAE and KSA markets?
Among the leading BYD innovations remains the Blade Battery, which offers unparalleled safety and longevity to deliver a truly excellent driving experience and performance reliability.
Another landmark innovation introduced by BYD is the Cell-to-Body technology. This is a concept to maximise the space inside the car, where BYD integrates the batteries into the (body) structure of the car. So rather than integrate battery cells in boxes and put them inside the car, these cells are completely infused and become a part of the core structure.
The brand has also introduced advanced driver assistance systems (ADAS) and improved energy efficiency technologies, which are highly relevant to the UAE and KSA markets, where consumers value both safety and cutting-edge technology.
BYD’s vehicles are also known for their premium features, available in most trims, such as the rotating screen, which has been quite a popular draw among customers.
What are the latest trend in blade battery technology? Are we seeing more interest in this technology within the GCC?
Blade battery technology continues to evolve rapidly, with a focus on enhancing energy density, safety, and longevity. One of the latest trends is the improvement in energy density, allowing vehicles to travel longer distances on a single charge. Additionally, there is a significant emphasis on safety features, as blade batteries are less prone to thermal runaway and have better heat dissipation properties compared to traditional batteries. Moreover, advancements in fast-charging capabilities are making blade batteries more convenient for everyday use, reducing the time required to charge electric vehicles (EVs).
There is a growing interest in blade battery technology within the GCC region. As the demand for electric vehicles increases, consumers and businesses are looking for reliable, efficient, and safe battery solutions. Blade batteries, with their enhanced safety features and longer lifespan, are becoming an attractive option for both individual and fleet buyers. Furthermore, government initiatives and incentives to promote sustainable transportation are driving the adoption of advanced battery technologies in the GCC.
What differentiates you from your competitors in the GCC market?
Broadly speaking, BYD cars offer the complete package – sleek modern design, high build quality and reliability, top-spec features and long-range batteries – all at an incredibly attractive price point. But if I had to specify two things that separate BYD from their competitors, it’s their superior ‘Innovation capabilities’ and their ‘Vertical integration’ which allows them to maintain quality and cost-effectiveness across the entire production process. BYD has invested a lot in their R&D, they have nearly 100,000 R&D engineers and 11 institutes looking at the complete design and production, everything is managed in-house as compared to other manufacturers that source a lot of the components and batteries from third party vendors.
The BYD Blade Battery technology is one of the most advanced of its kind in the market, renowned for its superior safety, longevity, and efficiency.
At Al-Futtaim Electric Mobility, we complement this excellent product line-up with an equally superior service and customer ownership experience.
We’ve also made sure that there are unbeatable finance options and comprehensive after-sales support. Globally they have over 25,000 patents for their technology innovation which position them as not just an automotive company, but also as one of the most innovative tech companies.
What further investment in the infrastructure is needed so that we can have more hybrid cars?
To increase the adoption of hybrid cars, further investment in infrastructure is essential. Key areas include expanding the charging network to ensure easy access to charging stations across urban and rural areas. Investment in fast-charging technology will also be crucial to reduce downtime for users.
Moreover, enhancing the power grid to support increased electricity demand and ensuring that charging infrastructure is integrated with renewable energy sources will promote sustainable growth. Finally, public awareness campaigns and government incentives can encourage more consumers to switch to hybrid vehicles, thereby supporting infrastructure development through increased demand.
What are the primary challenges BYD encounters in promoting and selling electric vehicles within the UAE and KSA? Conversely, what opportunities do you identify for growth and expansion in these markets for BYD?
Improving the charger-to-vehicle ratios will be key to drive mass adoption for electric vehicles in the region.
While we see a strong push for developing the charging infrastructure within the region, it remains the biggest convincing factor for customers to make the switch.
Additionally, consumer perceptions and awareness about EVs need continuous enhancement.
Educating the market about the benefits of EVs, addressing concerns about range anxiety, and ensuring robust after-sales service are crucial to overcoming these challenges.
What are BYD’s strategic plans for expanding its presence and market share in the electric vehicle sector within the UAE and KSA?
The UAE and KSA governments are committed to sustainability and reducing carbon emissions, which aligns perfectly with our mission.
On a group level, at Al-Futtaim, we are also committed to increase the share of New Energy Vehicle (NEV) sales to 50% by 2030. Additionally, we are striving to advance sustainable transportation infrastructure by installing 10% of the UAE’s electric vehicle charging stations within the same timeframe. Our pledge represents significant strides toward achieving net-zero carbon emissions in the UAE by 2050. Additionally, Al-Futtaim Electric Mobility Company’s partnership with Uber to provide electric and plug-in hybrid vehicles further supports BYD’s expansion in the region. Our collaboration with e& surely marked a significant milestone in the move towards electrification and promoting green mobility across the region.
These initiatives highlight our shared commitment to sustainable growth and offer substantial opportunities for further expansion in these markets.
