With petrol prices rising sharply in the UAE in April due to the regional conflict, UAE automobile companies say inquiries into hybrid and electric vehicles (EVs) have steadily risen over the course of the war as consumers look for cost-friendly alternatives.
Some dealers are reportedly seeing a surge in inquiries specifically for Chinese EV models, especially after the onset of the war. Abhinav Gupta, CEO of used cars company Cars24 Arabia, said that in the Dubai market, dealers saw a 30 per cent increase in enquiries as a result of higher fuel prices.
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This month, the UAE’s fuel prices slightly rose from March, reversing a two-month downward trend. Super 98 is 3.39 per litre, Special 95 is 3.28, E-Plus 91 is 3.2, and Diesel costs 4.69 per litre.
Gupta said that this momentum was already present prior to the war, but geopolitical tensions and the resulting fuel volatility are accelerating it.
“Current demand for hybrid/EV vehicles is noticeably stronger than this time last year,” the executive said.“In 2026, the added fuel price pressure and energy security worries have layered on extra momentum.”
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Demand in Dubai and Abu Dhabi, he added, remains especially strong among private buyers and fleets, scoring 15-20 per cent higher.“Further, petrol cars have seen 15 per cent drop in selling prices, whereas EVs are holding their market prices well, a strong indicator of demand,” the executive said.Target surpassed by 115 percent
Other automobile companies have also said they’ve been observing clear interest from consumers, with the number of enquiries and showroom visits surpassing their intended targets.
iCAUR, a subsidiary of the Chinese automobile manufacturer Chery and which has recently launched in the UAE, exceeded its retail target for the month of March at 115 per cent, a spokesperson said.
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The country director of iCAUR UAE, Hope Zhang, told Khaleej Times that a number of factors contributed to this rise in enquiries, namely increased awareness around fuel efficiency and longer-term running costs.
“Customers are taking a more measured approach, considering how vehicles fit into their day-to-day needs as well as longer-term costs. Hybrid and range-extended electric models, in particular, are resonating as they offer a practical transition toward more sustainable mobility,” he said.
Geely Group Brands CEO and Director of Albatha Automotive Group, Andreas Schaaf, said the company has also been seeing an increase in customer interest towards plug-in hybrid and fully electric vehicles.
“In our opinion,” he said,“this shift is not just a response to ongoing market conditions, but in fact a long-term transformation in customer perceptions and expectations towards mobility in the UAE.”
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Lexus’ UAE dealer, Al Futtaim, reported the same, with demand in hybrids increasing further in recent months.“Overall, demand is evolving in a measured but consistent way, pointing to a longer-term shift in how customers evaluate their mobility choices, now further reinforced by current market conditions,” Jacques Brent, Managing Director, Al-Futtaim Lexus UAE, said.
