Discovering if the GCC is ready for Electric Vehicles
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2020 GCC Electric Vehicle Survey Findings
Building on the success of the region’s first-ever survey to understand Electric Vehicle buyers, their opinions, perceptions, and purchasing intentions, we at YallaMotor set out to discover how much had changed in the past twelve months. Through an online survey that garnered 3,190 responses between 21st January and 14th February 2020, we aimed to highlight the pain points that potential buyers face when purchasing an Electric Vehicle in the GCC.
Although Electric Vehicles (EVs) began as a trendy fashion statement for the rich and famous, the increased choice in the market and reduced prices have positioned them as a potential global household commodity. Despite only 5.11% of respondents claiming to own or have owned an Electric Vehicle in the GCC, a significantly higher 11.16% claimed to have owned or currently own a Hybrid (petrol + electric) vehicle. It is vital to note the untapped majority of 83.73% who claimed to have never owned a hybrid or full electric car, signifying the significant potential present in the market.
Perceived Advantages of Electric Vehicles
When questioned about the perceived advantages of Electric Vehicles, respondents ranked the benefits as follows:
- Better Fuel Economy - 52.63%
- Reduced Carbon Emissions - 51.79%
- Lower Maintenance Costs - 24.80%
- I Don’t Know Enough - 23.61%
From an awareness standpoint, Saudi Arabia ranked the highest with only 21% of respondents claiming they didn’t know enough about Electric Vehicles, while Oman ranked the lowest with 26.77%.
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Perceived Drawbacks of Electric Vehicles
In line with last year’s findings, the top three perceived drawbacks of Electric Vehicles were:
- Long Charging Times - 47.21%
- High Initial Cost of Purchase - 37.27%
- Inconvenient Charging Options - 36.65%
Comparing results from both years reveals that not much has been done by manufacturers, dealers, and governments to alleviate the concerns of potential buyers and increase the desire to purchase an Electric Vehicle.
Return on Investment for Electric Vehicles
When asked whether they thought Electric Vehicles made for a good return on investment, 42.01% of respondents claimed they didn’t know enough about Electric Vehicles to answer the question. 34.86% of respondents claimed EVs were a good return on investment, a decrease from the previous year’s finding of 37%. Additionally, 23.13% of those surveyed claimed that Electric Vehicles did not make for a good return on investment despite promising cleaner and greener mobility.
Consumer Willingness to Pay for Electric Vehicles
Respondents were asked whether they would pay more (or less) for an Electric Vehicle compared to a traditional petrol/diesel powered vehicle. The results were quite telling:
- 72.98% claimed they would pay the same or less for an Electric Vehicle.
- 27.02% claimed they would pay more.
Given the current market prices of EVs, they are priced significantly higher than what the general public is willing to pay, contributing greatly to their low adoption rate in the GCC.
CLICK HERE TO DOWNLOAD THE FULL REPORT
Conclusion
In conclusion, there haven’t been any major developments in the rate of Electric Vehicle adoption across the region. Twelve months after our first survey, there are negligible changes in the figures, proving that the industry needs to come together and work towards letting more people experience an Electric Vehicle, which is the very first step to increasing the rate of adoption.
