The automotive industry in the UAE is experiencing a significant shift towards alternative powertrains and new mobility options, according to a recent survey conducted by Arthur D. Little. More than half of UAE respondents expressed interest in transitioning to hybrid cars for their next vehicle purchase, while less than 15 percent plan to opt for fully electric vehicles. This trend highlights a growing appetite for innovative automotive solutions in the region.
The study also reveals that the perceived importance of car ownership is increasing in the UAE, surpassing even major regions like China. This indicates a strong demand for personal transportation solutions in the country. The fourth edition of the Future of Automotive Mobility report delves into current and future trends in the automotive industry, covering areas such as electric vehicles, autonomous driving, and new mobility services within the UAE.
With insights from over 16,000 respondents across 25 countries, the study found that UAE residents are particularly interested in buying new cars, as opposed to used vehicles. This preference for new cars reflects the UAE’s readiness for automotive innovation and willingness to embrace new technologies. The high level of interest in electric and plug-in hybrid options underscores the UAE’s inclination towards eco-friendly and sustainable transportation solutions.
Ride-hailing services are the most popular new mobility option among UAE residents, demonstrating a shift towards alternative transport modes. The study also highlights a strong openness to adopting autonomous vehicles, with safety concerns being the primary obstacle to broader adoption. Overall, consumers in the UAE exhibit a great appetite for the latest vehicle technologies and seamless purchase experiences, presenting promising market opportunities for automotive manufacturers and distributors in the region.
The internet has become a dominant channel for UAE residents throughout the car buying process, from research to test drives and purchasing decisions. UAE car buyers visit dealerships an average of 3.9 times before making a purchase, emphasizing the need for a seamless integration of online and offline experiences. Additionally, more than half of respondents from the region prefer to complete the purchase of their car online, highlighting the shift towards digital transactions in the automotive sector.
Sustainability is a key factor influencing car choices for UAE consumers, with environmental considerations playing a significant role in decision-making. The UAE’s interest in alternative powertrains and new mobility options, coupled with a strong focus on environmental sustainability, positions the country as a leading market for automotive innovation. As the automotive industry continues to evolve, manufacturers and policymakers must navigate the changing landscape of the UAE market to meet the evolving needs and preferences of consumers.
