It would be easy to fall back on numbers and stats and announce 2024 as another banner year for the advance of the EV revolution. But that would do a disservice to the significance of the last 12 months. While EV sales and adoption globally did indeed continue to grow, reality also started to hit home as EV buyers evolved from eager early adopters to more discerning motorists. A new breed of car buyers raised expectations in terms of practicality and usability, while also seeking more affordable prices.
It’s impossible to ignore the tectonic shifts in the electric vehicle (EV) industry – with the highs of impressive growth and technological achievements tempered by lukewarm consumer demand against overly lofty ambitions set by governments and policymakers.
A younger, keener market in the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) carved out a slightly more enthusiastic parallel, as interest and take-up continued to grow.
The Global Picture
As already alluded to, EVs continued their upward trajectory in 2024. Electric cars are gaining market share, with predictions suggesting they could account for 20% of total car sales by the end of 2024. Market share could exceed 11% in the USA, as much as 25% in Europe, and almost half – 45% – in China. We’re looking at nearly 17 million EVs sold this year, compared to just under 14 million last year – that’s an increase of 3 million units!
China has taken a significant lead, producing over 60% of all EVs sold around the world. This dominance can be attributed to a mix of government incentives, robust manufacturing capabilities, and a head start in developing charging infrastructure.
Meanwhile, in Europe, EV sales continued to grow, even as the overall market experienced a slight decline. This was partly due to a phase-out of subsidies in some countries, such as Germany. An overall subdued economic climate, rising electricity costs, and political uncertainties also impacted consumer confidence in the newer, less familiar technology of electric cars.
Similarly, for many Americans, the reality of EV ownership still doesn’t match the hype, thanks to gaps in infrastructure and high sticker prices.
UAE and KSA: The Rising Stars of EV Adoption
Depending on your perspective, the GCC region is either ahead of global trends or slightly following behind. If the latter, it could well witness its declines in growth in the coming years. However, it seems unlikely, as countries like Saudi Arabia and the UAE are insulated from some of the known issues constraining EV growth in global markets. For example, they are less affected by consumer confidence concerns, stalled charging infrastructure, or protectionist policies and tariffs implemented by Europe and America in support of their own automotive industries.
As such, the region is taking significant strides in positioning itself as an emerging EV powerhouse. Partnerships and strategic investments are certainly the name of the game.
In the UAE, Chinese car companies strengthened their foothold, with one of the world’s biggest producers of electrified vehicles, BYD, launching a state-of-the-art showroom on Dubai’s Sheikh Zayed Road. In partnership with Al-Futtaim Electric Mobility, BYD showcased cutting-edge models like the YangWang U8, capable of tank turns and even floating and manoeuvring in water. Similarly, in KSA, BYD staged a spectacular high-profile launch and instantly found favour among consumers looking for a blend of affordability and innovation.
Legacy car companies like Volvo and Polestar (admittedly now owned by China’s Geely) saw growth in their electrified offerings. Building on its 2022 launch, this year saw the arrival of the Polestar 4, an electric SUV that further cemented its appeal among luxury EV buyers. One of the biggest players in the region, Toyota, also entered the fray with the Toyota bZ4X, an all-electric SUV designed for the region’s urban commuters.
Dubai has seen a rapid rise in EV registrations, thanks to the UAE Government actively promoting EV adoption through subsidies, incentives, tax exemptions, and rapid infrastructure development. Similarly, in Saudi Arabia, while EVs remain a small proportion of overall car sales, the establishment of the Kingdom’s first-ever car production plants is a milestone moment. Lucid has already begun production of its Air EV sedan there, and it will be closely followed by home-grown electric car company, Ceer.
BYD’s showroom in Riyadh.
Technological Strides of 2024
This year brought exciting advancements in EV technology, aimed at addressing some of the industry’s most pressing challenges.
With range anxiety being such a huge stumbling block in EV adoption, carmakers have worked hard to battle perceptions with ever-increasing driving ranges. Tesla and Mercedes are offering cars that achieve over 600km, while the Lucid Air promises nearly 900km. However, a big milestone has been claimed by Nio, which says its new ET7 crosses the 1000km mark thanks to a new semi-solid state battery composition.
Meanwhile, StoreDot’s silicon-based batteries promised ultra-fast charging times, though mass production remains a few years away. Zeekr also unveiled ultra-fast charging technology, capable of juicing up a battery from 10-80% in just 11 minutes.
Yet, the availability of chargers remains patchy in many regions. In England, for example, some EV owners still face journeys of up to 25km to find a charging point. The UAE and KSA fared better, with steady investments in charging networks aimed at supporting their growing EV fleets.
Manufacturers such as BYD started to offer V2L (Vehicle-to-Load) and V2G (Vehicle-to-Grid) technology, enabling its electrified models to perform as mobile power banks. V2L allows devices like portable fridges or TVs to be powered from the car – perfect for camping trips – while V2G allows EVs to feed electricity back into the grid, potentially revolutionising energy storage and grid management.
The Lucid Air promises nearly 900km of range.
EV Adoption: Electric Just Got Real
For all the headlines about record sales, EV adoption hasn’t been without its challenges. Consumers in the US and Europe expressed growing scepticism, particularly around the practicality of EVs for long-distance travel. Meanwhile, automakers in Europe struggled under competitive pressure from Chinese manufacturers offering cheaper models.
Years of runaway investment in transitioning to EV production also hit hard for legacy car companies, as they failed to find the sales volumes needed. Alarm bells rang with plant closures and job losses as overall car sales contracted dramatically.
This is particularly damaging to the automotive industry when big players such as Ford and Stellantis announced these cutbacks. It reveals the stark gap between policy ambitions and market realities.
It’s clear that the EV revolution is far from straightforward. While sales continued to grow globally, momentum was dampened by buyer hesitation. Conversely, in the UAE and KSA, the story was one of optimism and opportunity, as these nations positioned themselves as leaders in the transition to sustainable mobility.
