• Toyota RAV4 Hybrid, which starts at Dh139,900, was the manufacturer's first hybrid SUV to go on sale in the Emirates. Photo: Toyota
    Toyota RAV4 Hybrid, which starts at Dh139,900, was the manufacturer's first hybrid SUV to go on sale in the Emirates. Photo: Toyota
  • The Mitsubishi Outlander PHEV plug-in hybrid SUV has capacity to pack in 43 litres of fuel, with economy of 50km per litre. The PHEV version starts from Dh140,000, while its petrol equivalent sells for Dh79,500. AFP
    The Mitsubishi Outlander PHEV plug-in hybrid SUV has capacity to pack in 43 litres of fuel, with economy of 50km per litre. The PHEV version starts from Dh140,000, while its petrol equivalent sells for Dh79,500. AFP
  • One of the most popular hybrid vehicles is the Toyota Corolla Sedan Hybrid, which starts at Dh83,900. The new models come upgraded with a re-engineered drive motor and battery, and customers can now opt for an all-wheel drive version. Photo: Toyota
    One of the most popular hybrid vehicles is the Toyota Corolla Sedan Hybrid, which starts at Dh83,900. The new models come upgraded with a re-engineered drive motor and battery, and customers can now opt for an all-wheel drive version. Photo: Toyota
  • The Kia Niro comes with a lithium-ion polymer battery that works in tandem with a permanent magnet electric motor and a traditional 1.6L petrol engine. Prices start from Dh96,000. EPA
    The Kia Niro comes with a lithium-ion polymer battery that works in tandem with a permanent magnet electric motor and a traditional 1.6L petrol engine. Prices start from Dh96,000. EPA
  • With a new two-litre hybrid engine, the Toyota Corolla Cross brings a combination of power and low carbon dioxide emissions. When equipped with front-wheel-drive, the vehicle can do about 14km per litre on the road. Prices start from Dh110,000. Photo: Toyota
    With a new two-litre hybrid engine, the Toyota Corolla Cross brings a combination of power and low carbon dioxide emissions. When equipped with front-wheel-drive, the vehicle can do about 14km per litre on the road. Prices start from Dh110,000. Photo: Toyota
  • Ford Puma 1.0L EcoBoost features a one-litre EcoBoost engine that uses regenerative braking technology to recharge the battery, helping to increase the vehicle’s fuel economy. Prices start from Dh115,000. Photo: Ford
    Ford Puma 1.0L EcoBoost features a one-litre EcoBoost engine that uses regenerative braking technology to recharge the battery, helping to increase the vehicle’s fuel economy. Prices start from Dh115,000. Photo: Ford
  • The Toyota C-HR Hybrid comes with a 1.8L engine, giving you 24 kilometres per litre. Prices start from Dh87,000. Reuters
    The Toyota C-HR Hybrid comes with a 1.8L engine, giving you 24 kilometres per litre. Prices start from Dh87,000. Reuters
  • Lexus's ES 300h, popular with Uber and Careem drivers due to its fuel efficiency and long range, starts at Dh215,000. Reuters
    Lexus's ES 300h, popular with Uber and Careem drivers due to its fuel efficiency and long range, starts at Dh215,000. Reuters
  • Toyota Camry Hybrid, favoured by Dubai Taxis, starts from Dh135,000 and comes with a 2.5L engine. EPA
    Toyota Camry Hybrid, favoured by Dubai Taxis, starts from Dh135,000 and comes with a 2.5L engine. EPA
  • The all-wheel drive Volvo Plug-In Hybrid (PHEV) XC90 T8 SUV has a 2.0-litre four-cylinder turbo and supercharged engine, which takes it from 0-100 in 5.8 seconds.
    The all-wheel drive Volvo Plug-In Hybrid (PHEV) XC90 T8 SUV has a 2.0-litre four-cylinder turbo and supercharged engine, which takes it from 0-100 in 5.8 seconds.
  • A Ford F-150 Lightning pickup at its launch at the Rouge Electric Vehicle Centre in Dearborn, Michigan. EPA
    A Ford F-150 Lightning pickup at its launch at the Rouge Electric Vehicle Centre in Dearborn, Michigan. EPA
  • The F150 Hybrid Platinum gives 1,000 kilometres of range from its combined 3.5-litre, twin-turbocharged V6 and 46bhp (35kW) electric motor. Prices start from Dh284,445. Photo: Ford
    The F150 Hybrid Platinum gives 1,000 kilometres of range from its combined 3.5-litre, twin-turbocharged V6 and 46bhp (35kW) electric motor. Prices start from Dh284,445. Photo: Ford

UAE demand for hybrid and electric cars grows as petrol prices rise


Sarwat Nasir
  • English
  • Arabic

A growing number of UAE motorists are switching to hybrid and electric cars to cut costs amid rising petrol prices, experts say.

The cost of petrol in the Emirates increased by 12 per cent in July, and now stands at more than Dh4.50 a litre.

Vehicle manufacturers and dealerships have recorded 'stronger than ever" demand for an alternative to petrol-based cars.

Hybrid cars use two sources of power: petrol and an electric motor. Electric vehicles have a battery and an electric motor.

Al Futtaim Automotive, a car dealership in the UAE that sells brands like Toyota, Lexus and Honda, said mounting fuel costs are key but not the only factor at play when it comes to going electric.

“Demand for electric vehicles is stronger than it has ever been,” said Vincent Wijnen, senior managing director at the company.

Best fuel-efficient SUVs - in pictures

  • The Ford Puma EcoBoost offers drivers 23 kilometres per litre. Ford
    The Ford Puma EcoBoost offers drivers 23 kilometres per litre. Ford
  • The Ford Puma has hybrid technology but will not run solely on electric power. Ford
    The Ford Puma has hybrid technology but will not run solely on electric power. Ford
  • The Ford Puma 1.0L EcoBoost 125PS. Ford
    The Ford Puma 1.0L EcoBoost 125PS. Ford
  • Car reviewers say switching to the hybrid Toyota C-HR pays big dividends when it comes to fuel economy. Toyota
    Car reviewers say switching to the hybrid Toyota C-HR pays big dividends when it comes to fuel economy. Toyota
  • The Kia Niro comes with a lithium-ion polymer battery that works in tandem with a permanent magnet electric motor and a traditional petrol engine. EPA
    The Kia Niro comes with a lithium-ion polymer battery that works in tandem with a permanent magnet electric motor and a traditional petrol engine. EPA
  • Attendees take in the 2023 Kia Niro EV at the 2022 New York International Auto Show. Reuters
    Attendees take in the 2023 Kia Niro EV at the 2022 New York International Auto Show. Reuters
  • For fuel efficiency, the Mitsubishi Outlander PHEV maxes out at 50kmpl and can reach 100kph in 10.5 seconds. AFP
    For fuel efficiency, the Mitsubishi Outlander PHEV maxes out at 50kmpl and can reach 100kph in 10.5 seconds. AFP
  • Charging components are displayed next to a Mitsubishi Outlander PHEV plug-in hybrid SUV car at the Thailand International Motor Expo 2021. AFP
    Charging components are displayed next to a Mitsubishi Outlander PHEV plug-in hybrid SUV car at the Thailand International Motor Expo 2021. AFP
  • The 2022 Toyota Corolla Cross. Toyota
    The 2022 Toyota Corolla Cross. Toyota
  • When equipped with front-wheel drive, the Toyota Corolla Cross can deliver about 14kmpl on the road. AFP
    When equipped with front-wheel drive, the Toyota Corolla Cross can deliver about 14kmpl on the road. AFP

“This can be attributed not just to the high fuel prices, which are helping to accelerate the growth, but also due to the growing customer awareness and acceptance of the technology… (and) environmental advantages.

“I believe that the demand for hybrid and electric vehicles will continue to grow in the years to come as current owners are expected to upgrade to newer hybrid and electric models while more and more people will realise the benefits of hybrid mobility.”

Hybrid and EV sales soar

Globally, there are just under 20 million passenger EVs on the road (including plug-in hybrids), representing 1.5% of the global fleet according to BloombergNEF’s Electric Vehicle Outlook 2022. Analysts have predicted that figure will double again by the end of next year.

The report also says that EV sales in the US - 5% of new car sales - have passed a critical tipping point that signals the start of mass EV adoption.

EVs and hybrids have been in-demand in many countries for several years now, but sales in the UAE have been noticeably higher since petrol prices started to increase.

  • Top selling electric vehicles. 1. Tesla Model 3: 365,000 models worldwide in 2020. Tesla
    Top selling electric vehicles. 1. Tesla Model 3: 365,000 models worldwide in 2020. Tesla
  • 2. Wuling Hongguang Mini EV: 119,000 models worldwide in 2020. Getty Images
    2. Wuling Hongguang Mini EV: 119,000 models worldwide in 2020. Getty Images
  • 3. Renault Zoe: 100,000 models worldwide in 2020. Getty Images
    3. Renault Zoe: 100,000 models worldwide in 2020. Getty Images
  • 4. Tesla Model Y: 80,000 models worldwide in 2020. Getty Images
    4. Tesla Model Y: 80,000 models worldwide in 2020. Getty Images
  • 5. Hyundai Kona: 65,000 models worldwide in 2020. Getty Images
    5. Hyundai Kona: 65,000 models worldwide in 2020. Getty Images
  • 6. Volkswagen ID.3: 57,000 models worldwide in 2020. Getty Images
    6. Volkswagen ID.3: 57,000 models worldwide in 2020. Getty Images
  • 7. Nissan Leaf: 56,000 models worldwide in 2020. Getty Images
    7. Nissan Leaf: 56,000 models worldwide in 2020. Getty Images
  • 8. Audi e.tron: 48,000 models worldwide in 2020. Getty Images
    8. Audi e.tron: 48,000 models worldwide in 2020. Getty Images
  • 9. SAIC Baojun E-Series: 48,000 models worldwide in 2020. Getty Images
    9. SAIC Baojun E-Series: 48,000 models worldwide in 2020. Getty Images
  • 10. Great Wall Ora R1: 47,000 models worldwide in 2020. Getty Images
    10. Great Wall Ora R1: 47,000 models worldwide in 2020. Getty Images

A recent report, commissioned by Audi Abu Dhabi and produced by YouGov, found that 52 per cent of customers are looking to switch to hybrid/electric vehicles.

A quarter of the 1,000 people surveyed said they are waiting for more EV options to be launched before making a purchase, while 14 per cent expressed buyers' remorse after purchasing a petrol car instead of a hybrid.

Motorists have to weigh up what is typically a larger initial purchase price for electric and hybrid vehicles against long-term servings.

However, Mark Austin, general manager of Audi Abu Dhabi, said motorists can save money with electric vehicles.

“Interest in EVs has continued to grow organically over time, however increasing petrol prices has certainly accelerated the shift in consumers attitude towards EV adoption,” he said.

“When considering energy efficiency across the full lifecycle of producing, transporting and using fuel – typically referred to as ‘well to wheel’ – electric vehicles offer high efficiency and the lowest carbon emissions per mile.

“Depending on the type of car you drive, the average cost of filling a fuel tank can be upwards of Dh270 versus Dh8.25 to fully charge an EV battery with a 110 kWh charger. With EVs, owners also save on operating expenses."

Mr Wijnen said its Toyota Hybrid sales have grown consistently year-on-year since 2016, with growth of 33 per cent in 2017, 42 per cent in 2018, 147 per cent in 2019, 52 per cent in 2020 and 108 per cent in 2021.

The 2022 Toyota Corolla Hybrid starts at about Dh86,867.

The Lexus RX and ES hybrid models have also been popular in the UAE, having seen a 22 per cent increase in demand since last year. Prices start at Dh176,379.

One of the most expensive hybrid cars for sale in the UAE is the Ferrari SF90 Stradale, which costs Dh1,766,100.

Challenges for electric vehicles

The EV market in the country is still in its infancy, despite policies over the years that have made it easier to use electric vehicles, including increasing the number of charging stations, and free Salik and reserved parking in Dubai.

Many public taxis are now hybrid models, however.

Vitali Bielski, associate director of mobility at Frost and Sullivan, a growth strategy and consultancy company, said a country-wide roadmap was needed.

“The main (challenge) is the lack of GCC-wide or even county-wide EV policy or a roadmap,” he said.

“While Gulf states' governments are willing to welcome EVs, they lack a clear legislative path which would lead to more EVs on the streets.

“Most national sales companies and distributors expect some form of government incentives (monetary, non-monetary, infrastructure-related), while government bodies tend to rely on the automotive industry to drive the developments of the EV market.”

10 of the world's most expensive electric cars - in pictures

  • Aspark Owl, $3.6 million. Getty Images
    Aspark Owl, $3.6 million. Getty Images
  • Pininfarina Battista, $2.6 million. Photo: Automobili Pininfarina
    Pininfarina Battista, $2.6 million. Photo: Automobili Pininfarina
  • Rimac Nevera, $2.5 million. AP Photo
    Rimac Nevera, $2.5 million. AP Photo
  • Genovation GXE, $750,000. Photo: Genovation
    Genovation GXE, $750,000. Photo: Genovation
  • Mercedes Benz SLS AMG Electric Drive, $550,000. Photo: Daimler AG
    Mercedes Benz SLS AMG Electric Drive, $550,000. Photo: Daimler AG
  • Rolls Royce 102 EX, $500,000. Getty Images
    Rolls Royce 102 EX, $500,000. Getty Images
  • Lightning GT, $300,000. Alamy
    Lightning GT, $300,000. Alamy
  • Tesla Roadster, $200,000. Reuters
    Tesla Roadster, $200,000. Reuters
  • Porsche Taycan Turbo S, $185,000. AFP
    Porsche Taycan Turbo S, $185,000. AFP
  • Audi e-Tron GT, $164,000. AFP
    Audi e-Tron GT, $164,000. AFP
The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

Batti Gul Meter Chalu

Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5

MATCH INFO

Real Madrid 2 (Benzema 13', Kroos 28')
Barcelona 1 (Mingueza 60')

Red card: Casemiro (Real Madrid)

Mina Cup winners

Under 12 – Minerva Academy

Under 14 – Unam Pumas

Under 16 – Fursan Hispania

Under 18 – Madenat

INVESTMENT PLEDGES

Cartlow: $13.4m

Rabbitmart: $14m

Smileneo: $5.8m

Soum: $4m

imVentures: $100m

Plug and Play: $25m

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

The Saga Continues

Wu-Tang Clan

(36 Chambers / Entertainment One)

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

The specs: 2018 Mercedes-Benz E 300 Cabriolet

Price, base / as tested: Dh275,250 / Dh328,465

Engine: 2.0-litre four-cylinder

Power: 245hp @ 5,500rpm

Torque: 370Nm @ 1,300rpm

Transmission: Nine-speed automatic

Fuel consumption, combined: 7.0L / 100km

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

W.
Wael Kfoury
(Rotana)

Updated: July 12, 2022, 11:26 AM