Dubai Supreme Council of Energy has been working to include hybrid and electric vehicles in their larger fleets. Implementation on this plan is expected to start from 2017, achieving the target of 10% energy-efficient vehicles set forth by UAE Vision 2021. Dubai government fully supports the promotion of eco friendly cars to minimize carbon emissions and greenhouse effect in the atmosphere. Not only the government sector, motorists are also being motivated to be considerate toward the environment.
Global Warming, A Global Warning
Dubai government plans on reducing Carbon emissions by 16% in the next four years. For this purpose, the authorities are considering multiple ventures of eco friendly cars. For instance, right now there are just 150 hybrid taxis in Dubai, but by 2021, the numbers are expected to reach 4,750. The Road Transport Authority (RTA) also considers launching Toyota Mirai in the taxi fleet, which utilizes hydrogen cell technology. For this initiative, the government has to install hydrogen fuel cell stations to persuade consumers.
Additionally, Dubai Electricity and Water Authority (DEWA) has been tasked to install electric car charging stations across Dubai. In this regard, almost 100 charging stations have already been established. As we are inching closer to achieve vision 2021, we would soon see more and more of these stations covering all the important parts of the Emirate. All the government bodies are standing up against global warming.
Fuel Remains a Necessity
Overall, the auto sales are predicted to escalate putting GDP growth rate at 3.6% in this year, which is 0.3% more compared to 2016. With all the efforts to promote eco friendly cars, the sale of traditional vehicles including luxury cars would remain strong due to low running costs and cultural inclinations. This is also due to the fact that patrol costs less here compared to most countries around the world even after fuel price regulations. Analysis of UAE Ministry of Energy gives us a clear indication of this. From January 2017, diesel stands at $0.53 (Dh 1.94), whereas the global average is $0.86 per liter. According to Ahmed Al Habtoor, CEO of Al Habtoor Motors, the low prices support the idea of using powerful cars.
Fancy a Luxury Ride?
The 2016 has seen a decline in various auto segments, however, certain key segments stayed strong throughout the year including sports cars and luxury SUVs. “McLaren sales for instance, have increased 15-20%”, as claimed by Michel Ayat, CEO AW Rostamani Automotives and Arabian Automobiles Company. “Customer sentiments are tough but unlike other categories seeing negative growth, luxury automotive sales did zero to five percent in the first quarter.” In 2017, Dubai residents might consider buying more and more green vehicles. But it’s hard to say that the desire of exotic vehicles will diminish.