PMV Middle East



Global electric vehicle (EVS) adoption has seen a massive jump during the last two years, mainly due to legislativ­e and societal pressure on companies to counter climate change through new products and processes, according to a recent study published by management consultanc­y firm Arthur D. Little (ADL).

The ADL Global Electric Mobility Readiness Index 2022, which evaluates the readiness of 15 countries for electric mobility, ranks Norway as the world leader in EV adoption, with over 50% domestic market share for EVS. This is followed by China, Germany, UK, and Singapore, where EVS are on the verge of becoming mainstream.

The US, Japan, UAE, and Thailand are emerging markets where ICE vehicles remain popular, but consumers are willing to adopt EVS with the availabili­ty of charging infrastruc­ture.

The UAE EV market is currently in the early stages and forecast to grow at a CAGR of 30% between 2022 and 2028, according to the report. Passenger vehicles constitute around 95% of the EV market in the UAE due to an increase in rental car services and the limited scope for commercial vehicles in transport and logistics. Under UAE Vision 2021, the government has converted 20% of government agency cars to EVS and further intends to reach 42,000 EVS on the streets by 2030.

The UAE has one of the biggest charging-station-to-vehicle-ratios in the world. Dubai’s EV Green Charger initiative was launched in 2015 to increase the number of charging stations. Since then, the network has expanded to 325 charging stations in the counry. To promote the use of EVS, Dubai Electricit­y & Water Authority and Road Transport Authority are working jointly on incentives like free parking, exemption from toll, and reduced registrati­on fees with an aim to make public transport emission-free by 2050.

The UAE government is also supporting local manufactur­ing. The UAE’S first EV manufactur­er, Al Damani Motor Vehicles Manufactur­ing, has opened a 45,000-sqft factory in

Dubai Industrial City with a temporary assembly line for 10,000 cars and a future production capacity of 55,000 cars, annually. The ADL report indicates that around 30% of UAE residents would consider buying an EV to contribute to the green transition and believe that they offer better value for money than convention­al vehicles in the long run. People in the age group of 20-25 are more likely to be influenced by environmen­tal factors and could be the youngest potential adopters.

These trends are likely to be reflected in the trucking industry within the next few years. The Internatio­nal Energy Agency (IEA) recommends kick-starting deployment in the heavy-duty sector to accelerate the uptake of EVS worldwide.

The recently concluded IAA Transporta­tion 2022 expo in Germany set the stage for the immediate future of electrifie­d long-haul transport in Europe with every leading truck manufactur­er demonstrat­ing significan­t progress toward series production.

It’s safe to say that range anxiety will be no longer be a concern within the next two years as battery-electric, heavy-duty trucks will offer at least 500 km on a single charge. It is now up to the regional transport authoritie­s to fast-track policy implementa­tion for EV adoption in commercial vehicle fleets.

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