Agencies: Demand is still limited and expectations of a gradual decline in prices

Consumers criticize the overpricing of electric cars and the “limited models”

• The prices of electric cars ranged between 130 thousand and 400 thousand dirhams.

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Consumers reported that the prices of electric cars available in local markets are exaggerated, compared to regular models of cars, which hinders the chances of their acquisition.

They pointed out that although these cars are no longer modern in the market, the continued rise in prices, in addition to the limited availability of models and models, increases the suffering of consumers in the search for suitable electric cars to take advantage of the government incentives offered to support the use of these cars.

On the other hand, officials of car agencies confirmed that the demand for electric cars is still limited in the local market, and that it is expected to witness a gradual decline in prices in the coming periods with the support of international competitiveness in the battery sector of these cars.

On a field tour of agency outlets, "Emirates Today" monitored electric cars, the prices of which ranged between 130 thousand and 400,000 dirhams.

Challenges

In detail, the consumer, Hussein Adel, said that he "suffered in the search for an electric car at an appropriate price of less than 100,000 dirhams in the agencies, but he noticed price exaggerations in this type of car compared to regular models of cars."

Consumer Samer Noaman added, “Although electric cars are no longer modern in the global or local markets, and have been available for more than three years, their prices are exaggerated, in addition to the fact that the models available in the local market are very limited, and they lack diversity that meets the needs. different consumers.

Consumer Imad Naji explained that “the incentives offered by government agencies to acquire electric cars are multiple, but the prices are exaggerated, in addition to the remarkable limited models of these cars,” noting that “the electric car’s price exceeds 100,000 dirhams, which prompts the consumer to buy regular car models.” With luxury specifications and four-wheel drive instead.”

Consumer Khaled Saad considered that "the prices of electric cars are the biggest challenge to their spread, while the second obstacle is the limited models available for these cars in the market compared to regular cars."

gradual decline

In turn, the CEO of the Arabian Automobile Company, one of the companies of the "Abdul Wahed Al Rostamani" group and the agent for "Nissan, Infiniti and Renault" cars in Dubai and the Northern Emirates, Michel Ayat, said, "It is expected that the electric car markets will witness in the coming periods gradual rates of decline in their prices, with Global competitiveness in the field of batteries that power these cars, which is a major reason for the continued rise in their prices,” noting that “the limited demand for these cars is one of the factors that make the expansion of offering multiple models of them still limited.”

He pointed out that in the event of "a gradual decline in the prices of electric cars during the coming years, this will raise the demand for them," noting that "the government incentives in the country are among the factors supporting the growth of the spread of this type of cars, although the rates of demand for them are still lower compared to the rates of demand in European and American markets, as local demand is expected to increase by more than 25% by 2030, supported by government policies that stimulate the direction of those environmentally friendly cars.”

Feasibility

For his part, Shah Bisharat, production manager at Galadari Company, the dealer for Mazda cars, explained that “the prices of electric cars are exaggerated in local markets, with their technologies still relatively new in global markets, and it will take time to record appropriate declines, and it is expected That the coming period will witness a gradual decline with the acceleration of international companies to expand their studies in the environmentally friendly car sector, including hydrogen-powered cars.”

He added that "the demand for these cars in the local market is still limited, for reasons related to their high prices and the low awareness of a large number of consumers about the extent of the economic feasibility of acquiring these cars," noting that "the (Corona pandemic) is among the factors that negatively impacted the sector. Electric cars, and reduced the rates of demand for them, and consequently the lack of multiple types of them in the market, and it is expected that the pace of competitiveness among companies to launch new models during the next two years.”

limited demand

In the same context, Mamdouh Khairallah, General Manager of Rolls-Royce Motor Cars, the Arabian Gulf Mechanical Center in Dubai and the Northern Emirates, said, "Demand is still limited in the market for electric cars, which is linked to the continued rise in prices and the availability of a limited number of their models." He pointed out that "batteries are one of the main reasons for the rise in car prices, especially with a specific number of international companies that specialize in supplying these batteries."

He added, "The recent period witnessed expanded competitive manifestations between different companies in the battery technology sector that power these cars, especially from Chinese and Asian companies, which will reflect in the coming period a gradual decline in the prices of these cars, and will support the growth of demand for them."

government incentives

Dubai Electricity and Water Authority (DEWA) has introduced incentives to encourage the acquisition of electric cars, such as providing free charging for non-commercial electric cars until December 31, 2021, provided that this is available exclusively at public charging stations of the authority, and not at home charging stations.

The Roads and Transport Authority in Dubai provided incentives, including allocating free parking spaces for electric cars, reducing the authority's fees when registering electric cars, and waiving the fee for a Salik sticker.

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