reply China's Electric Vehicles Welcomed by Middle East Market

In recent years, in the face of increasingly severe challenges of climate change and pressing pressure to reduce emissions, countries in the Middle East have accelerated the promotion of green energy transformation and economic diversification, and the development of green transportation has become an important element. Electric vehicles made in China are favored by more and more industry insiders and consumers in the region due to their high cost performance and beautiful design. The Middle East is becoming a “blue ocean” for Chinese electric vehicle enterprises to explore the international market.The development of electric vehicles is a general trendThe International Energy Agency (IEA) research report pointed out that the transportation sector currently accounts for about 60% of global oil consumption. In order to realize the global emissions reduction target, it is necessary to significantly increase the proportion of electric vehicles. The development of electric vehicles has become an important part of the Middle East countries to promote green transformation.The UAE is the first country in the Gulf region to commit to achieving net-zero emissions by 2050. To this end, the UAE has formulated a National Electric Vehicle Policy, which provides incentives such as free registration, free parking, and reduced charging and toll fees to promote the development of the electric vehicle industry. The UAE has already converted 20% of federal government vehicles to electric vehicles, and has set a target of at least 30% of government vehicles and 10% of road vehicles to be electric (pure electric or hybrid) by 2030. By 2050, 50% of UAE road vehicles will be electric.The development of the electric vehicle industry is a key component of Saudi Arabia's Vision 2030, a program of strategic transformation. 2022 saw the launch of the Saudi government's National Electric Vehicle Strategy, which provides a range of incentives for consumers to purchase electric vehicles, in addition to increasing their market share, including tax reductions and subsidies. In addition, the Saudi government has set a target for the capital city of Riyadh to reach a 30% share of electric vehicles by 2030, with an annual production capacity of 300,000 vehicles. Saudi Arabia has completed the development of supporting policies related to electric vehicle charging station infrastructure in August 2022 to promote the acceleration of charging infrastructure.The Egyptian government launched the Electric Vehicle Development Plan in 2018, aiming for electric vehicles to account for 2% of the total number of vehicles by 2025 and 10% of the total number of vehicles by 2030. The Egyptian government has adopted a series of policy measures and concessions to incentivize and support the investment and consumption of electric vehicles and charging stations in order to achieve these policy objectives.The Qatari government has proposed a target of 10% penetration of pure electric vehicles by 2030, expansion of 15,000 charging stations, and 100% electric buses for public transportation.Governments in the Middle East have launched electric vehicle promotion programs, accelerating the growth of the electric vehicle market and increasing consumer acceptance and recognition of electric vehicles.Chinese car companies compete for powerElectric vehicles are expected to have a market share of more than 15 percent (approximately 58,000 units) of new passenger and light commercial vehicle sales in the UAE by 2030, and this share will increase to 25 percent (approximately 110,500 units) by 2035, according to PwC's latest report, “Electric Vehicle Outlook 2024: UAE Chapter. International consulting firm Arthur D. Little expects the UAE electric vehicle market to grow at an annual rate of 30% between 2022 and 2028. Deloitte forecasts that the Saudi electric vehicle market is expected to be worth $28 billion by 2030.The huge demand for electric vehicles and supporting facilities in the Middle East is undoubtedly a major benefit and an unmissable opportunity for Chinese automakers. According to China Association of Automobile Manufacturers (CAAM), China exported 1.203 million new energy vehicles in 2023, a year-on-year increase of 77.6%. China's new energy vehicle production and sales accounted for more than 60% of the global share. In addition to meeting the needs of the domestic market, “going overseas” has become a consistent action of the industry, and the Middle East has become an important market that major automobile enterprises are competing to develop. 2023 In the first 10 months of the year, China's automobile exports to the Middle East amounted to 578,100 units, an increase of 32.61% year-on-year, of which more than 110,000 units of new-energy vehicles were exported, a year-on-year increase of 66.44%. 66.44%.Xie Qiyi, vice president of Dubai One Road Group, introduced that electric vehicles have become a new business card for Chinese brand vehicles in the Middle East.During the 2022 World Cup in Qatar, China Yutong Bus provided Qatar with 1,002 World Cup-specific electric buses and put them into the country's public transportation system after the World Cup.The 2023 United Nations Climate Change Conference (COP28) was held in Dubai, and the electric buses that provided services for the conference were among the most popular ones in the world. In October 2022, Red Flag electric vehicles successfully “joined” the Dubai police force, becoming the first electric vehicle for the Dubai police, and the Red Flag E-HS9 has become one of the favorite electric vehicles for local sheikhs, royals and government officials. The Red Flag E-HS9 has now become one of the favorite electric cars of local sheikhs, royals and government officials.At the end of 2022, Geely's electric commercial vehicle brand, Remote Vehicle, signed an order for 1,000 electric commercial vehicles with companies in the UAE. In September 2023, another Geely electric vehicle brand, Kryptonite Vehicle, signed national master agency agreements with dealers in the UAE, Saudi Arabia, Qatar, and Bahrain, respectively, to build a sales and service network; and in March 2024, the Red Flag E-HS9 became the first electric vehicle for the Dubai Police. service network; in March 2024, the sales of two electric vehicles, Extreme Krypton 001 and Extreme Krypton X, were opened in the UAE and Saudi Arabia.BYD started to enter the Middle East market from 2023, entering the UAE, Saudi Arabia, Jordan, Qatar, Israel, etc. In May 2024, BYD opened its first store in Riyadh, the capital of Saudi Arabia. in June 2024, BYD completed its 1000th delivery in the UAE. BYD has established itself as the leading electric vehicle brand in the Middle East.Other Chinese EV companies such as Great Wall, BAIC, Changan, Xiaopeng, and Skyworth have also explored the Middle East market. Chinese EVs are increasingly favored by Middle Eastern consumers due to their cost-effectiveness and aesthetic design.According to the data released by the Israel Automobile Importers Association, in 2023, Chinese EVs accounted for about 61% of the EV market share in Israel. in the first half of 2024, the market share increased to 68.31%, with BYD becoming the champion brand in sales, of which the ATTO 3 became the best-selling model in Israel in the first half of the year with a sales volume of 7,265 units. In Jordan, Egypt and other countries, Chinese brand electric vehicle sales are also growing.Industry insiders are generally optimistic about the sales prospects of Chinese brand electric vehicles in the Middle East. Heiko Seitz, PwC's global and Middle East EV leader, expects to see more EV models from Chinese companies in the UAE in the coming years. A report released by Dubai-based Glasgow Research & Consulting concluded that Chinese automakers have seized the opportunity to offer reliable and cost-effective electric vehicles, making them key players in the UAE's transition to a greener future.Helping the Middle East to improve the industrial chainZhang Chenling, executive president of One Way Group, believes that China's electric vehicle industry chain is complete, and upstream and downstream batteries, energy storage, infrastructure and other aspects are in the world's leading level, and many Middle Eastern countries are not only aiming at importing electric vehicles, but also hoping to promote the development of their own electric vehicle industry chain through the cooperation with China, in order to grow their local manufacturing capacity, thus boosting the process of their own industrialization. The best way for Chinese automotive enterprises to enter the Middle East market is to choose a reliable local partner, which can make full use of the preferential policies of the local government and effectively deal with some trade barriers. The cooperation between the two sides can complement each other's advantages and bring mutual benefits.