Surge in Demand for Hybrid and Electric Vehicles in the UAE Amid Rising Fuel Prices

With petrol prices sharply increasing in the UAE in April due to regional conflicts, automobile companies in the UAE report a steady rise in inquiries for hybrid and electric vehicles (EVs) as consumers seek more cost-effective options.

Some dealers have noted a significant increase in inquiries for Chinese EV models, particularly since the conflict began. Abhinav Gupta, CEO of the used car company Cars24 Arabia, mentioned that dealers in Dubai experienced a 30% rise in inquiries due to the soaring fuel prices.

This month, fuel prices in the UAE have seen a slight increase from March, reversing a two-month downward trend. Super 98 is priced at 3.39 per litre, Special 95 at 3.28, E-Plus 91 at 3.2, and Diesel at 4.69 per litre.

Gupta explained that this trend was already visible before the conflict, but geopolitical tensions and fuel price volatility are accelerating it.

“Current demand for hybrid and EV vehicles is noticeably stronger than at this time last year,” Gupta stated. “By 2026, the additional pressure from fuel prices and energy security concerns will further boost this momentum.”

He added that demand in Dubai and Abu Dhabi remains especially robust among private buyers and fleets, with inquiries increasing by 15-20%. “Moreover, the selling prices of petrol cars have dropped by 15%, while EVs are maintaining their market prices, indicating strong demand,” he noted.

Target Surpassed by 115 Percent

Other automobile companies have also reported a significant increase in consumer interest, with the number of inquiries and showroom visits exceeding their targets.

iCAUR, a subsidiary of the Chinese automobile manufacturer Chery, recently launched in the UAE and exceeded its retail target for March by 115%, according to a spokesperson.

Hope Zhang, the country director of iCAUR UAE, told Khaleej Times that several factors contributed to this rise in inquiries, including increased awareness of fuel efficiency and long-term running costs.

“Customers are adopting a more thoughtful approach, considering how vehicles align with their daily needs and long-term expenses. Hybrid and range-extended electric models, in particular, are appealing as they provide a practical transition towards more sustainable mobility,” he explained.

Andreas Schaaf, CEO of Geely Group Brands and Director of Albatha Automotive Group, noted a growing customer interest in plug-in hybrid and fully electric vehicles.

“In our view,” he stated, “this shift is not merely a reaction to current market conditions but reflects a long-term transformation in customer perceptions and expectations regarding mobility in the UAE.”

Lexus’ UAE dealer, Al Futtaim, reported a similar trend, with increasing demand for hybrids in recent months. “Overall, demand is evolving steadily, indicating a longer-term shift in how customers assess their mobility options, further reinforced by the current market dynamics,” said Jacques Brent, Managing Director of Al-Futtaim Lexus UAE.

Target Surpassed by 115 Percent

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