Dubizzle Group sees accelerating momentum for electric and hybrid vehicles

Adgully Bureau |

Dubai, UAE: Dubizzle Group, the Middle East technology unicorn and #1 regional classifieds platform, says that there has been a significant uptick in the listing and sales of electric vehicles (EVs) and hybrid cars in the UAE. Proprietary market data compiled by the Group’s classifieds platform dubizzle.com shows a sustained increase in the inventory of second-hand low emission vehicles, signalling a clear shift in consumer preferences towards more sustainable transport options, as well as a maturing of the electric and hybrid vehicle category in the UAE.

During the first nine months of 2023, dubizzle’s automotive classifieds data shows a 28% increase in EV listings, compared to the first nine months of 2022. Over the same period, hybrid car listings surged by 142%, further underlining the growing popularity of low emission vehicles. By contrast, non-EV car listings went up by just 9% over the same period.

Within the EV category, listings for the Tesla Model 3 increased by 9.2% in the first nine months of 2023 compared to the same period in 2022. Tesla appears to be the preferred brand among buyers, with the Volkswagen ID.4 and ID.6 close behind. Listings for the Volkswagen ID.6 increased by 97% during the same period but declined by 73% from a peak in Q4 2023, likely due to measures taken by the UAE in March of this year to regulate the import of EVs through non-approved dealerships and traders.

The strong growth in demand for low emission vehicles, according to Dubizzle Group, can be directly correlated to rises in fuel prices, with spikes in demand for low-emission vehicles closely linked to spikes in fuel costs. Moreover, accessibility of EV ownership in the UAE has improved, with prices for low-emission vehicles decreasing since early 2022, making them more affordable for drivers. Used EV prices have also decreased since the mid-2022 supply shortage has corrected.

Dubizzle Group believes that the widely available EV charging infrastructure in the UAE has supported stronger demand. The number of EV charging stations in Dubai has seen a more than threefold increase since 2015, with more residential and commercial property developers introducing EV charging stations to their properties. With Dubai targeting a 170% increase in EV charging stations by 2025, ownership of EVs is likely to continue to rise.

Haider Ali Khan, CEO of Dubizzle Group MENA, commented: “As the second-hand automotive sales market leader, we are in a unique position to understand changing consumer preferences, and we can clearly see a shift in trends for electric vehicles. With the availability and affordability of electric vehicles improving across the segment, we can expect to see further escalation in the adoption of electric vehicles in the months and years to come, helping the UAE stay on track for its commendable sustainability goals. At dubizzle, we are deeply committed to helping the UAE achieve these milestones and offering our users the best, most holistic experience while buying or selling their vehicles online.”

The UAE's EV market is poised for continued growth, with a projected CAGR of 28.5% from 2023 to 2028, according to BMI Research. The UAE currently ranks 8th globally in terms of readiness for electric vehicles, bolstered by ambitious government initiatives for the transport sector, according to Arthur D. Little research.

The accelerated progress of the introduction of EVs to the local market is bolstered by the UAE's commitment to increasing the penetration of low emission vehicles, for example through the National Electric Vehicles Policy announced in July 2023. This policy seeks to create an environment conducive to green mobility by establishing infrastructure standards for EV charging stations and promoting the adoption of electric vehicles. The Government’s goal is to increase the share of electric vehicles to 50% of all vehicles on the road by 2050.

dubizzle’s growing role in the second-hand EV and hybrid car market is a clear demonstration of the UAE's evolving automotive landscape, as current and future transportation shifts to a cleaner footing. Through its portfolio of leading classifieds brands, Dubizzle Group is actively supporting the UAE's ambitious green mobility agenda, while enabling a circular economy through trusted marketplaces for products and services. Dubizzle Group has played a significant role in building confidence in used cars, introducing innovative features to better facilitate buying and selling, including financing and insurance options. This approach makes the purchase of used EV and hybrid vehicles more accessible and efficient for consumers.

Haider Ali Khan concluded: “Benefiting from strong macroeconomic tailwinds, including a significant uptick in long-term residency visas, rapid population growth, and thriving GDP growth, the outlook for the UAE’s EV market is very positive.”

Dubizzle Group comprises a leading portfolio of brands, including the UAE’s #1 real estate classifieds platforms Bayut and dubizzle, with 4 million active listings and a monthly regional user base of 27 million people. More than half of the UAE’s population visits one of the Group’s platforms every month.