Experts and officials in the automotive sector in the country stressed the importance of developing five incentives to contribute to overcoming the high price barriers for electric cars and to contribute to supporting their spread in greater proportions in the markets.

They pointed out to «Emirates Today» that the most prominent of these incentives is the application of customs and tax exemptions or reductions on these types of cars similar to what some countries in the world have applied, in addition to proposing reductions in large proportions on insurance fees, and expansion in creating infrastructure for them throughout The state, and providing incentives for owning it such as reducing registration and licensing fees, and granting it privileges in public parking spaces, as well as awareness campaigns about the benefits of using them, which supports the total cost of owning these cars, indicating that facing the high prices of these cars also requires increasing the importance of awareness of their use, and obtaining incentives A.

Electric cars

In detail, Saud Abbasi, General Manager of Toyota at Al-Futtaim Motors, said that “although Dubai is one of the riders in setting incentives to deploy electric cars, there are challenges facing the expansion in the use of these cars, the most prominent of which is the high prices for being New technologies in the sector, which still need periods of time for their prices to decline, and it is important to expand the application of incentives at the federal level, which contributes to reducing the total cost of acquiring those cars », indicating that« it is possible to study granting exemptions or relative reductions on fees Customs and tax on that C Rat ».

He explained that «the incentive incentives for the acquisition of these cars also include, the expansion in granting reductions in fees for car services such as registration, licensing and traffic and parking tariffs compared to traditional cars, which motivates consumers to go more to them, while calculating the total reductions and incentives granted to them».

Abbasi considered that awareness of the importance of using these cars and the benefits resulting from them is one of the most important challenges, and to stimulate the processes of their use, we must focus on spreading awareness of them, pointing out that «without awareness about those cars, it is difficult to spread them.

He added that “studying incentives for discounts in various fields of these cars will reduce the difficulties of owning them, which are currently facing consumers.” He pointed out that “agencies get prices from producing factories, which in turn cost high fees specifically for those cars, which depend mainly on the battery element.” "Which comes from companies with external suppliers for auto production factories and at high prices, and there will be some time until new technologies are tried and the prices of electric car batteries drop."

Rising prices

For his part, General Manager of the Porsche Center Abu Dhabi cars, Wissam Khalil, explained that “it is natural for electric cars to face the challenges of high prices, because it is one of the new technologies in the sector, and it does not depend entirely on auto production factories only, but on the producing companies And supplied with batteries that are the primary element in the work of these cars, and is one of the essential things in determining their price indicators, especially since the more capabilities of the batteries in those cars, the more competitive advantages for them.

He pointed out that «in order to overcome these challenges, it is important to consider ways to implement a number of incentives, the most prominent of which is the study of granting exemptions or reductions on customs and tax duties on those cars, similar to what was taken by some countries of the world, given that the orientation of these cars is one of the things The future task that needs to be enhanced in particular is the publication in the beginning, due to environmental considerations and the rationalization of the consumption of petroleum products.

Khalil added, “The incentives are also important to include reductions in insurance fees, fees related to licensing and registering these cars, and discussing granting them exemptions or additional reductions on parking fees and road traffic tariffs, in addition to expanding infrastructure creation at the federal level, by providing charging stations In a more widespread manner, which eliminates fears of the difficulty of finding shipping areas when purchasing these cars, pointing to "the importance of spreading awareness about the advantages granted to these cars and the importance of using them in different regions to stimulate their spread."

Producing factories

Khalil said, “Moving the demand for these cars will gradually introduce more types of cars producing factories to keep up with demand, and according to the mechanisms of supply and demand in the markets, their prices will decrease gradually, with an increase in demand for them, which will be driven by these incentives once applied, as the factories will go to increase production. In percentages that reduce the cost of these cars.

He pointed out that «some types of electric cars may be offered at lower prices in global markets compared to their counterparts in the local markets, but that is due to the different nature of the markets, there are trade agreements that give price preferences to some markets from the producing factories, in addition to most selling policies in markets A different world depends on having multiple distributors and not agents such as the Emirates or the region’s markets, as the agents are loaded with additional fees due to the financial burdens of the requirements for the availability of showrooms, service centers, outlets, warehouses for spare parts, and trained workers for those outlets ».

Supply prices

General manager of Rolls-Royce Motor Cars in Dubai, Sharjah, Ajman, Ras al-Khaimah, Umm al-Quwain and Fujairah, Mamdouh Khairallah, said, “The prices of electric cars are high in local markets as a result of factory prices, in addition to the limited production of these cars compared to traditional cars.” To support the reduction in prices of these cars, and to stimulate their demand and spread, it is important to consider implementing a number of axes.

He added that those axes include a study of granting customs exemptions or reductions and tax similar to what has been applied by some countries, in addition to a search to motivate insurance companies to put lower insurance fees for these cars compared to traditional ones, especially since the cost of repairing these cars in the event of accidents is less than those of cars Gasoline powered.

He pointed out that «the axes of motivation also include the expansion of the infrastructure supporting this type of car, which the state in particular Dubai was pioneering in installing charging stations for it, and thus increasing these stations is one of the things that support the spread of electric cars, especially since those cars need about 45 minutes "Or more at a time for charging, compared to a few minutes for conventional cars at gas stations, and thus the support of the infrastructure is a strong catalyst for the spread of those cars."

He explained that all of these motivating axes are important to be accompanied by intensive awareness campaigns for consumers about the importance of owning electric vehicles and their benefits, and focusing on the long-term maintenance of these cars, by rates of up to 50% compared to traditional vehicles.

He said, "Supporting the spread of these cars among a greater number of consumers will in turn constitute a greater demand for these cars among the producing factories, and therefore this will lead to a reduction in the prices of these cars during the coming years by different rates, along with other catalysts that enhance their spread and lower their prices."

Incentives to cut electric car prices

1- Examining customs and tax exemptions or reductions for these cars.

2- Provide discounts on insurance fees imposed on it.

3- Expanding discounts or exemptions on licensing fees, parking and traffic tariffs.

4- Expanding the infrastructure for shipping and servicing areas.

5- Awareness campaigns about the benefits of using it.

Prices differences

The general manager of Rolls-Royce Motor Cars in Dubai, Sharjah, Ajman, Ras al-Khaimah, Umm al-Quwain and Fujairah, Mamdouh Khairallah, said that “the differences in the prices of electric cars in some countries of the world and their counterparts in the Arab countries are due to factors, including the high competition between those companies to sell these cars With the support factors and the prevalence of demand there, in addition to relying on the markets of Europe and other countries on distributors to sell those cars, some of them over the Internet, compared to sales operations in Arab markets that mostly depend on agents, and they are bound by the requirements of building showrooms and maintenance workshops spread in the worst S, in addition to assigning workers with large numbers in garages and outlets, which increases the financial burden and cost on cars, in addition to the profit margins ratios that are added to the costs of operation and work.

Electric cars need about 45 minutes or more at one time to charge.

Reducing insurance and fees related to licensing electric cars are catalysts.