Middle East insights: How Chinese EV makers are tapping into UAE

On Dubai's Sheikh Zayed Road stands a cluster of car showrooms and renowned Chinese brand Hongqi has found a home among them. ‪The flagship showroom further highlights the Chinese brand's electric vehicles entering the UAE market.‬

Hongqi is not the only brand who is eyeing up the market. In November 2023, China's BYD also opened its flagship showroom in Dubai with its new EV model launched in the country. As of March, more than ten Chinese car companies have entered the UAE market offering EV products.

Chinese brands taking centre stage

Working hand in hand with local dealers, Chinese carmakers have managed to enter UAE market and build up brand recognition with help of their rich local business experience and sales network. New energy vehicles of Chinese brands have been a choice for local consumers.  

In 2022, China's Hongqi electric crossover was stationed in the Dubai police fleet, the first-ever EV joining Dubai police's luxury patrols.

In 2023, China's automakers brought their electric buses to Dubai ferrying the 28th UN Climate Change Conference (COP28) attendees. The shuttle buses from Yutong, BYD and King Long account for more than half of the electric buses serving the climate conference.

According to UAE-based dealer One Road, the company has received several hundred orders of Chinese-made new energy vehicles for the use of local ride-hailing and other operational vehicles.

This will undoubtedly provide significant momentum for enhancing the influence of Chinese new energy vehicle brands and strengthening local consumer recognition in the UAE.

Meet local demands

"Can the range of electric cars support my daily commute 100 kilometers?" "Do I need to install a charging station at home?" In social media group of EV clubs of the UAE, many local car buyers still have "range anxiety" and other concerns about charging facilities and after-sales services.

"Shifting consumer perception toward green mobility solutions and increasing awareness about EV's benefits over traditional internal combustion engine vehicles is essential," Ehtesham Shahid, an Abu Dhabi-based researcher told CMG.

Catering to the various preferences of their clientele, many dealerships of Chinese EVs have launched a "drive-on lease" sales plan. Taking BYD Han as an example, the dealer offered a three-year plan starting at just 2999 AED per month ($817) with assured future value. During this period, the brand provides regular services such as insurance, maintenance, and vehicle registration.

Dealers also strive to alleviate buyers' "range anxiety" by providing complimentary home charging stations, actively collaborating with local governments to establish public charging stations, and engaging in the development of supporting infrastructure.

A local buyer Ahmad told CGTN that the reason why he chose to buy an EV is that the charging is much cheaper and no regular maintenance is required. "Going for the future is always better," he said.

The future is bright

Apart from those veteran players, more Chinese automakers are eyeing the UAE market and accelerating their expansions.

In February, Chinese EV maker Xpeng said it has established a strategic partnership with UAE-based Ali & Sons as part of its overseas expansion plan.

In March, some models of Zeekr, subsidiary of China's Geely, have been available for test drives and bookings in the UAE after the company embarked its partnership with UAE-based AW Rostamani Group.

Li Auto, a Chinese smart automaker, is tapping into the Middle East market with its first stop including the UAE. According to a memo of earnings call made available to CGTN, the company's senior vice president Zou Liangjun told analysts that it has already launched the recruitment of a local sales and service team in Dubai. The automaker also plans to set up a special after-sale service network in the first half of 2024.

"With a strong focus on affordability, electric vehicles, and customer satisfaction, Chinese OEMs are reshaping the UAE car market and providing consumers with more choices than ever before," said an analysis article by Dubai-based Glasgow Consulting.

Supervisor: Mu Li

Producer: Li Chao

Reporter: Wang Xuejing, Li Xiang