In recent years, in the face of the increasingly severe challenges of climate change and the 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 one of the important elements. Electric vehicles made in China are favored by more and more industry insiders and consumers in the region due to their cost-effectiveness and beautiful design. The Middle East is becoming a “blue ocean” for Chinese electric vehicle enterprises to explore the international market.
The development of the electric vehicle industry is an important part of Saudi Arabia’s Vision 2030, a programmatic program for strategic transformation. 2022, the Saudi government launched the National Electric Vehicle Strategy, which, in addition to increasing the market share of electric vehicles, provides a series of incentives for consumers to purchase electric vehicles, 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 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, up 77.6% year-on-year. 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.
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%, and BYD became the top-selling brand, with the ATTO 3 becoming the best-selling model in Israel in the first half of the year with 7,265 units sold. In Jordan, Egypt and other countries, Chinese brand electric vehicle sales are also growing.
The Middle East is at the crossroads of Asia, Europe and Africa, and some countries enjoy tariff-free access to the European and North American markets. While meeting the local market demand, Chinese electric vehicle enterprises can also take the Middle East as an important partner in developing the third-party market, from which they can radiate to broader markets such as Europe and Africa. The cooperation between China and the Middle East countries in the field of electric vehicles has a broad prospect and huge potential.
Translated with DeepL.com (free version)