20-05-2025
Electric Car Dealerships in the UAE Only Service Vehicles They've Sold
Despite the rapid global expansion in electric vehicle (EV) sales, including in the Arab region, several challenges still hinder their widespread adoption. Among the most prominent issues are insufficient infrastructure and growing concerns over battery range limitations during long-distance travel. However, a new challenge has recently emerged—one tied to the maintenance and repair of these vehicles, particularly following accidents.
UAE media recently highlighted this issue through a report that revealed how some authorized electric vehicle dealerships are refusing to conduct maintenance or replace parts for cars purchased from independent showrooms rather than through the official agency.
The report largely relied on statements from Mohammed Mazhar Hamadeh, Vice Chairman of the Higher Technical Committee and Head of the Vehicle Committee at the Emirates Insurance Association. He emphasized that these practices not only harm vehicle owners but also negatively impact insurance companies. Hamadeh noted that insurance premiums in the market have reached a state of balance after most companies adjusted their pricing fairly for both parties: the insured customer now receives quality service, while insurers sell policies at prices aligned with actual repair costs.
He added that the core problem lies in some authorized EV dealerships—particularly those representing Asian manufacturers—refusing to service vehicles unless purchased directly from them. This ignores the fact that showrooms operate legally within the country and offer competitive prices that attract a wide customer base. Hamadeh stressed that, legally and logically, agencies should not refuse to sell parts or offer maintenance services as long as they operate in the UAE market and complement the roles of insurance companies and licensed showrooms.
He also pointed to numerous complaints about agency practices, such as charging exorbitant fees merely to open a maintenance file or outright rejecting service requests, which puts insurance companies in a difficult position when a vehicle involved in an accident was purchased from a showroom. He highlighted a significant price disparity between dealerships and showrooms for the same vehicle models, which continues to drive customers toward the latter despite the challenges.
He further explained that some policyholders blame insurance companies when agencies refuse repairs, even demanding their vehicle be written off—even when the needed part costs less than AED 1,000. Such behavior is illogical and results in major losses for insurers. He clarified that insurance companies are responsible for paying the cost of spare parts, not for supplying them, as their role is to insure—not manufacture or distribute—car components.
Hamadeh concluded by noting that the UAE's electric vehicle market is seeing robust growth and increasing demand. While insurers are fulfilling their duties in providing coverage and repairs, he called for more cooperation from authorized dealerships in supplying the necessary spare parts, regardless of where the vehicle was purchased.
On the other hand, car dealerships stated they are exclusively committed to servicing vehicles sold directly through their channels, citing legal obligations to provide warranties and guarantees along with original parts. Vehicles bought from independent showrooms or external sources do not fall under this warranty and thus are not the dealership's responsibility.
In this context, Khaled Al Asal, Sales Manager for the GAC brand at Gargash Motors, told UAE media that the main reason behind this policy is the risk that imported vehicles may not conform to Gulf specifications or may contain manufacturing defects. Servicing such vehicles could expose dealerships to technical and legal liabilities, especially since repairs require warranties on the work performed. He stressed that agencies aim to protect their brand reputation by supporting vehicles they directly sold, which come with warranties on parts and servicing.
Separately, other dealerships clarified that servicing vehicles purchased outside official channels is subject to internal policies and assessed on a case-by-case basis. Some of these vehicles may still be covered under factory warranty if it extends to the region where the dealership operates, as is the case with some brands. However, in general, dealership commitments are strictly limited to vehicles sold directly through them, in terms of maintenance, repairs, and parts availability.
