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The National
a day ago
- Automotive
- The National
UAE electric vehicle premiums surge but experts remain bullish as market grows
Insuring an electric car in the UAE has become much more costly, after last year's record floods, but industry experts believe the future remains bright for the vehicle segment as sales increase. one of the country's leading providers, said insuring an electric vehicle on average costs 72 per cent more on average than a petrol or diesel-powered alternative. Figures compiled by the company show the average comprehensive EV policy currently stands at about Dh4,992 per year, compared to Dh2,895 for regular internal combustion engine vehicles, when comparing vehicles of similar body type. 'Repair costs for EVs are higher due to specialised parts and battery systems,' said Hitesh Motwani, deputy chief executive of the insurance group. 'There are fewer authorised repair centres, and parts often have to be shipped internationally.' The repair problems were brought into sharp focus by the unprecedented floods that hit the UAE in April 2004, when mass EV battery failures drove insurance claims up. Still, Mr Motwani believes that the market is entering a 'transition phase' that will see more nuanced pricing, factoring in battery age, charging behaviour and self-driving features. 'More insurers are also partnering with authorised EV dealers to streamline the repairs and claim services,' he said. 'We're watching the space evolve from novelty to norm – and as that happens, customers can expect more competitive, data-driven pricing, but also a need to be more informed buyers.' EVs are expected market share of more than 15 per cent of all sales in the UAE by 2030, and could reach about 110,500 vehicles five years later, PwC's recently released Mobility Outlook report found. The UAE has set an ambitious target of having EVs make up half of the cars on the roads by 2050, in support of the nation's net zero drive. Staying the course When Toshita Chuahan took delivery of her Tesla three years ago, the choice was less about a moral stand on emissions than a hard-headed calculation. 'I wanted an SUV I could drive for the next decade,' said Ms Chauhan, chief business officer at 'At the time, fuel savings, free charging for Teslas, and monthly instalments comparable to a petrol model made the decisions obvious.' Today, with insurance premiums for electric vehicles (EVs) on the rise, her budget is different. 'Back then, the cost difference wasn't much,' said Ms Chuahan. 'But even factoring in that increase, I'm still saving on running costs. For two years, charging was free – I was paying nothing beyond road tolls and the odd car wash.' EV boom reshaping the roads While the UAE's EV market has faced challenges, it has enjoyed healthy growth in recent years. EVs made up 13 per cent of new car sales in 2023, up from 0.7 per cent in 2021, according to government data cited by e-mobility specialist, Heiko Sietz. To put this into perspective, this is equal to between 28,000 and 33,000 new EVs, including plug-in hybrids, sold in 2023, compared to only a few thousand in 2021. 'This marks one of the fastest adoption curves in the region,' said Mr Sietz. Regionally, Mr Sietz told The National, this means that the UAE now leads the Middle East in EV penetration, well ahead of neighbouring countries where electric models still account for about one per cent or less of new car sales. 'Nearly two-thirds of UAE residents now say they intend to make an EV their primary vehicle by 2025, showing how quickly public sentiment is shifting in favour of more sustainable mobility,' said Sietz, the global eMobility leader at PwC. 'A growing variety of EV models at accessible price points is helping to accelerate this adoption.' Overcoming road blocks The UAE is quickly overcoming traditional barriers to EV adoption, particularly charging access, range concerns, and upfront costs. As such, Mr Seitz believes that the conditions are 'highly favourable' for ownership. 'Running costs are a fraction of petrol, range anxiety is easing, and the variety of models at accessible price points is growing fast.' In Abu Dhabi alone for example, a joint venture between Adnoc and Taqa aims to install 70,000 EV chargers by 2030. Drivers can now also travel further with a charged battery, as many new EVs are able to cover distances of more than 400km on a full charge, with premium models exceeding 600km. A maturing market will bring new realities For drivers such as Ms Chuahan, the honeymoon period may be over – Tesla's once-free charging network now comes at a cost. A minor incident left her waiting for three months for a replacement bumper shipped from China. 'If it had been major damage, that would have been a serious inconvenience,' she told The National. Policybazaar's own data reflects a shift in buying behaviour. There are more enquiries for brands from China, such as BYD, and for premium EVs from brands such as Mercedes and Volvo, as well a growing second-hand Tesla market. 'We're also seeing that EVs aren't always the primary car in a household,' she notes. 'People still keep a petrol car for longer trips or as a back-up.' Manufacturers push confidence Concerns over insurance are temporary growing pains, as EV adoption grows and more data becomes available, said Roberto Lopes Da Silva, UAE general manager of electric car brand Nio. 'We expect pricing to normalise. Moreover, continued dialogue between insurers, regulators, and EV manufacturers will be key in bridging this gap and making EV ownership more accessible,' he told The National. Nio's customers he adds are often 'forward-thinking individuals who are enthusiastic about technology and sustainability, especially in the premium to luxury segment.' For Mr Lopes Da Silva, this dynamic environment in the UAE, means products must truly differentiate themselves, be it in range, technology, design, or customer experience. He adds that the driving range of an electric vehicle depends on several variables, including the model type, battery capacity, and real-world driving conditions such as speed, terrain, and climate. For example, the Nio ET5 Long Range variant has a certified range of up to 615 kilometres. For daily use, under mixed driving conditions, customers can realistically expect between 500 to 550 kilometres per full charge. Evolving sector As the UAE's EV market matures, infrastructure is expanding and resale values are expected to stabilise. Ms Chauhan said she is committed. 'Driving my Tesla has become second nature,' she said, describing the experience of driving a petrol car like stepping back in time. With the UAE government's goal of half of the cars on the road to be electric by 2050 – she is expected to have a lot more company on the roads.
Yahoo
22-07-2025
- Business
- Yahoo
EV Battery Maker Stock Plummets. What's Behind QuantumScape's Volatility.
Shares of solid-state electric-vehicle battery pioneer QuantumScape were down—a lot—on Monday. The decline probably isn't related to any company news or EV policy changes in the U.S. Instead, the stock has been up a lot. QuantumScape stock fell 14.5% to $12.52 a share, while the rose 0.1% and the dropped less than 0.1%. Solve the daily Crossword
Yahoo
18-06-2025
- Automotive
- Yahoo
Trump Is Turning the US Into an Electric Vehicle Laggard
(Bloomberg) -- President Donald Trump's efforts to unravel policies supporting electric vehicles threatens to turn the US into a laggard for years to come, according to a new report. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads BloombergNEF reduced both its near- and long-term EV outlook for the first time, cutting 14 million battery-powered cars from its sales projections through 2030 due to the US rollback. The researcher now sees the country trailing not only China and Europe, but also the global average adoption rate until 2040. 'Global EV sales are growing, but the national picture is more varied than ever,' BNEF analysts write in the report released Wednesday. Whereas China is expected to account for nearly two-thirds of the almost 22 million plug-in vehicles sold globally this year, in part thanks to government incentives, 'all major EV policies in the US are under fire.' Trump ordered the elimination of subsidies and other measures boosting electric vehicles during his first day back in the White House in January. His administration and the Republican-controlled Congress are heeding his directive by moving to ease national fuel-economy standards, phase out EV tax credits and strip California's ability to set its own emissions limits. BNEF's outlook assumes national gas-mileage and tailpipe regulations will revert back to where they were during Trump's first term, and that the up-to-$7,500 consumer tax credit will end for most EVs after this year. There's potential for further downside to the researcher's outlook for EV sales in the US, depending on the ultimate fate of waivers allowing states to impose more stringent clean-air rules. A coalition of states led by California Attorney General Rob Bonta sued last week to challenge the administration's move to scrap state-level policies. 'If this attempt at revoking the waiver is successful, it would have dire consequences for EV sales in California, and because of the state's oversized influence on the EV market in the country, in whole of the US,' BNEF says. 'Removing all of the supply-side mandates in the country, at the same time as demand incentives, would push down EV sales in the US sharply.' China, by contrast, is expected to keep up its momentum in transitioning to plug-in vehicles, largely due to simple economics: It's the only large market where EVs are cheaper, on average, than comparable combustion cars. Demand also is getting a boost from the government extending subsidies that encourage consumers to trade in older cars for new EVs and hybrids. BNEF predicts the country's electric vehicle market will be larger than the total US car market within the next year. 'China is emerging as a major electric vehicle manufacturing powerhouse,' BNEF says in its report, estimating that the country accounted for just shy of 70% of worldwide EV production last year. China's dominance of EV manufacturing and the battery supply chain contributed to rising trade tensions and increased tariffs since BNEF last published its annual outlook. The European Union imposed duties on imports of battery-electric vehicles from China for five years starting in October, with added tariffs ranging from 35% for MG maker SAIC Motor Corp. to 7.8% for Tesla Inc. 'Policymakers face growing tension between environmental targets and other competing policy priorities, and as a result many automakers have reduced previously announced EV goals or quietly shelved them,' BNEF says in its report, citing walk-backs by manufacturers including Toyota, Ford, Mercedes-Benz and Volvo. In addition to taking measures to protect domestic manufacturers from cheaper EVs imported from China, the EU relaxed its CO2 emissions standards by sparing manufacturers from likely fines this year and allowing companies to meet tougher targets more gradually. As a result of the change, BNEF cut its forecast for electric vehicle sales in affected markets from this year through 2027 by about 19%, or roughly 2.6 million cars. The UK — which left the EU in 2020 and has maintained relative openness to Chinese imports — has emerged as the leading major market for electric vehicles after China. BNEF expects plug-in cars to reach 40% share of the UK market by next year. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P.
Bloomberg
18-06-2025
- Automotive
- Bloomberg
Trump Is Turning the US Into an Electric Vehicle Laggard
President Donald Trump's efforts to unravel policies supporting electric vehicles threatens to turn the US into a laggard for years to come, according to a new report. BloombergNEF reduced both its near- and long-term EV outlook for the first time, cutting 14 million battery-powered cars from its sales projections through 2030 due to the US rollback. The researcher now sees the country trailing not only China and Europe, but also the global average adoption rate until 2040.
