Hybrid-Electric Propulsion Set To Revolutionise The Automotive Industry

This is especially true in urban areas where pollution, traffic, and security are all pressing problems. New ideas for electric, connected, autonomous, and shared mobility are being developed by industry players, thereby increasing the pace of technological innovation within the automotive industry. Over the past decade, the industry has received over US$400 billion in investment, with the most recent US$100 billion coming in the year 2020. Investments are being made in both established businesses and new ventures that are developing solutions for the widespread adoption of electric mobility, vehicle connectivity, and autonomous driving. With the advent of such advancements, it is expected that the price of EVs will drop, and electric shared mobility will become a viable alternative to individual car ownership. While the rate and scope of change will vary across vehicle categories, electrification will play a significant role in the overall transformation of the mobility industry and present significant opportunities. Introducing brand-new EVs to the market is a crucial first step towards achieving rapid and widespread adoption of electric mobility. Electric vehicle (EV) producers, suppliers, financiers, dealers, energy suppliers, and charging station (CS) operators, to name a few, must all collaborate for the transformation to be a success.

Since the demand for electric vehicles is increasing as a result of rapid technological advancements, the electric vehicle market is growing rapidly in the Middle East and Africa. Increasing demand for electric vehicles, government incentives and subsidies for electric vehicles, and rising environmental concerns are all contributing to the market's expansion.

Currently, the market's expansion is being stymied by the high entry price.

Commenting further on the current trend in the electric and hybrid vehicle domain, Mahmut Gazi Bilikozen, Automechanika Dubai’s Show Director stated,” Last year during Automechanika Market Outlook 2021, interestingly, 40% of Middle East operators reported that they have received customer enquiries for alternative fuel vehicle products and services. Despite this development, more than half the respondents (55%) from within the garage and workshop sector admitted that they have not yet invested in the new equipment which will be needed to service electric vehicles though the majority say they know they need to invest but have not yet begun the process.”

Stephen Louis, a Key Account Manager for Axalta Premium Brands, believes that the industry will face a number of challenges and opportunities in the advent of these changes. “New technology is going to present the collision repair industry with a lot of challenges, whether that’s for electric vehicles or cars with other features,” he said.

According to a report by Research and Markets, a Dublin-based market research firm, because of its superior infrastructure for electric vehicles, Dubai has captured a larger share of the regional market than any other city in the area. Efforts are being made by both public and private entities to improve charging technology in order to shorten the time needed to recharge electric vehicles. The Saudi Cabinet has approved small price hikes for gasoline and diesel as part of the country's Fiscal Balance Program 2024. Including the VAT, the price of regular gas rose by 83% over the previous year, while the price of premium rose by 127%. The electric vehicle market in the Middle East and Africa is highly competitive, with major players including Tesla, Inc., Hyundai Motor Company, Volkswagen Motor Company LTM, Bayerische Motoren Werke AG, and others.

Impact of COVID-19 on the Market for Electric Vehicles

Public transit was severely curtailed during the COVID-19 pandemic. The widespread lockdown caused by the pandemic and later by the continuation of remote working and hybrid working opportunities the global automobile market, which includes electric vehicles, experienced a precipitous decline in sales. Currently, several manufacturers are reevaluating their business strategies and others are turning to R&D to produce state-of-the-art electric cars.

It was announced that during the lockdown period all commercial vehicle assembly plants will be closed, not just in Saudi Arabia but everywhere in the world. As an import-dependent economy, Saudi Arabia felt the pinch when imports were restricted. Furthermore, sales dropped to single digits as showrooms were closed. Since the first quarter of 2020, when oil prices first began to fall, the economy has been shrinking. Nonetheless, the non-oil revenue sector has begun to revive since the market lockdown was lifted, which has provided an economic boost to the market.

Demand for high-performance, low-emission, and fuel-efficient vehicles is expected to rise in the years ahead, which will have an impact on the market. The populace showered plaudits when the government of Saudi Arabia established stringent regulations governing vehicle emissions.  It is expected that low-emission vehicles will sell well in Saudi Arabia because of the country's growing environmental consciousness and the fact that the price of electric vehicle batteries has dropped.

Several initiatives have been launched by the Saudi Arabian government to increase the popularity of electric vehicles. A memorandum of understanding (MOU) has reportedly been struck between Saudi Arabia and the United Kingdom to battle climate change and support sustainable energy sources in order to reach the Saudi Vision 2030 targets. It is anticipated that the launch of a brand new facility would aid in the training and education of a large number of individuals and lead to the creation of several new jobs. All of these elements will help the electric commercial vehicle industry in Saudi Arabia expand in the next years, boosting the country's economy.

The government of Saudi Arabia has been encouraging the use of electric vehicles as a top priority in its efforts to better the country's air quality. The demand for EVs is being driven by the rising use of EVs as a means to reduce pollution and carbon emissions, the increased use of EVs to reduce emissions, and the rigorous rules and regulations governing vehicle emissions imposed by governments. Several governments offer financial incentives, including tax exemptions and rebates, subsidies, and discounted parking and toll costs, to encourage the purchase and use of electric vehicles.

To produce electric vehicles, Lucid is working with the Saudi Arabian government to construct the country's first manufacturing facility dedicated to the industry. Government officials have set a goal of ensuring that 30 percent of cars in the nation's capital are covered by insurance. Lucid has declared plans to invest in the development of the sophisticated electric vehicle manufacturing business in order to fulfil the rising demand for EVs. To further boost Saudi Arabia's electric car manufacturing and sales, the National Industrial Development Center (NIDC) is actively courting key original equipment manufacturers.

As petrol costs climb in the UAE, hybrid and electric car demand rises

According to Al Futtaim Automotive, a car dealership in the United Arab Emirates that sells brands like Toyota, Lexus, and Honda, rising gasoline prices are a major, but not the only element at play when it comes to making the switch to electric vehicles.

“Today, more than ever, people want to drive electric cars. The rising cost of fossil fuels is certainly a contributing factor, but more consumer education and enthusiasm for the technology are also driving this development. As current owners are expected to upgrade to newer hybrid and electric models, and as more and more people become aware of the benefits of hybrid mobility, I anticipate a further rise in demand for hybrid and electric vehicles in the years to come,” stated, Vincent Wijnen, Senior Managing Director, Al Futtaim Automotive.

Recent research commissioned by Audi Abu Dhabi and conducted by YouGov found that 52% of customers are interested in making the switch to hybrids or electric vehicles. One-fourth of the 1,000 persons questioned are holding off on buying an electric vehicle (EV) until more models become available, and 14% have hybrid-buying remorse.