A Bloomberg Intelligence (BI) survey shows that Middle East buyers remain hesitant about battery-electric vehicles (BEVs).

Only 10% of respondents in Saudi Arabia and the UAE plan to buy a BEV in the next year, down from 19% in 2023. Concerns about charging infrastructure, battery reliability, and charging times persist.

Internal combustion engine (ICE) vehicles dominate preferences, with 55% of respondents favouring them. Hybrid electric vehicles (HEVs) account for 29% of choices, combining traditional and electric technologies.

German brands Mercedes and BMW lead consumer preferences in the region. Toyota ranks third, supported by strong hybrid sales, while Tesla slips to fourth place from last year’s top spot. In the luxury segment, Ferrari and Porsche take the lead, reflecting their growing appeal as demand in China slows.

Michael Dean, Senior Auto Industry Analyst at Bloomberg Intelligence, said: “The survey findings align with industry expectations. Traditional automakers continue to dominate both luxury and economy segments. Concerns about charging infrastructure and battery risks remain significant hurdles for BEVs.

“However, there’s increasing openness toward BEVs produced by Middle Eastern automakers, driven by the establishment of local assembly facilities in the UAE and Saudi Arabia.”

Japanese brands dominate current ownership, with Toyota holding a 32% market share. Meanwhile, scepticism toward Chinese brands persists, with 67% of respondents citing quality and technology concerns. This sentiment challenges the growth of brands like MG, Changan, and Geely in the region.

Efforts toward electrification are slow, even as COP28 UAE emphasises sustainability. Saudi Arabia’s Ceer Motors aims to launch its first BEV in 2025, targeting a production capacity of 150,000 units under Vision 2030. Notably, 17% of respondents are open to local brands, citing better suitability for the region’s climate.

The survey underscores the Middle East’s continued preference for premium combustion vehicles but highlights gradual changes spurred by local initiatives. - TradeArabia News Service