Bloomberg Intelligence Survey Finds Middle East Buyers Show Limited Interest in BEVs, Favoring ICE Vehicles

Dubai, 21 November 2024 – Middle East consumers remain cautious about battery-electric vehicles (BEVs), according to a new Bloomberg Intelligence (BI) survey. Only 10% of respondents in Saudi Arabia and the UAE plan to buy a BEV in the next 12 months, down from 19% in 2023, as concerns over charging infrastructure, battery reliability, and long charging times persist.

Despite global momentum for BEVs, internal combustion engine (ICE) vehicles remain the dominant choice in the region, favored by 55% of respondents. Hybrid electric vehicles (HEVs), which combine traditional and electric technologies, account for 29% of preferences.

Mercedes and BMW lead the region’s wish lists ranking first and second, respectively. Toyota follows closely, supported by strong hybrid sales. Tesla, despite its global leadership in BEVs, ranks fourth in consumer preferences, falling from first place last year. Among luxury brands, Ferrari and Porsche top the list, highlighting the region’s growing importance to premium automotive segments as demand in China slows. Among car owners, around 48% currently own a Japanese brand, led by Toyota with a 32% market share.

Michael Dean, Senior Auto Industry Analyst at Bloomberg Intelligence, said: “The findings of the Bloomberg Intelligence Survey may come as little to surprise to many in the auto industry as well as consumers. As expected, traditional automakers dominate both the luxury and economy segments. While buyers here still have concerns over the availability of charging points, charging times, and battery risks, factors that will likely continue to pose as a stumbling block for EV producers. What’s interesting is that respondents are increasingly open to BEVs that are produced by local automakers based in the Middle East, reflecting a trend in recent years where assembly facilities have been built in both the UAE and KSA.”

The survey also highlights scepticism toward Chinese brands, with 67% of respondents expressing concerns about owning a Chinese car due to perceived issues with quality and technology. This could hinder the growth of brands like MG, Changan, and Geely, despite their increasing presence in the region.

Despite the emphasis on sustainability during COP28 UAE, electrification efforts in the Middle East remain slow, underscoring the region’s reliance on premium combustion vehicles. However, local initiatives may

spur gradual change. Notably, Saudi Arabia’s Ceer Motors plans to launch its first BEV in 2025, targeting a production capacity of 150,000 units as part of Vision 2030. The survey found that 17% of respondents would consider purchasing a local brand, citing better suitability for the region’s hot climate.

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Media Contacts Bloomberg LP, Mona Saleh, msaleh39@bloomberg.net