Qatar: Passenger electric vehicles (EV) in the country are expected to reach 10 percent sales by 2030 as the government works towards collaborating with E-vehicle organisations to achieve this feat.
Recently, the Ministry of Transport announced that in line with national vision 2030, 35 percent of the total vehicles of its fleet and all public transport will be changed to EV mode in the next 7 years. With the implementation of this initiative, the E-vehicle market is expected to rapidly increase during the forecast period.
Commenting on the partnerships by the government and E-vehicle companies, Fitch Solutions analysts report that the market will witness a rising demand and will drive passenger EV sales by more than 300 percent in 2023 to reach year-on-year sales volumes of around 600 units.
The report states that the E-vehicle sales will see nearly 48 percent annual sales growth by 2032 to reach an annual sales volume high of almost 15,000 units.
“This will represent a passenger EV penetration rate of 20.4 percent in 2032,” the report said adding that the market is poised to witness higher growth in the years to come.
Fitch Solutions highlighted that the country “will reap economic benefits from lower geopolitical risks in the MENA region.”
As Qatar and Bahrain resolved their diplomatic ties, the report states that it will benefit both the country’s economies in several sectors such as oil and gas, tourism, and business activities, indicating a potential growth in the EV market.
“The plan for 100 percent electrified public transport buses by 2030 will continue to drive strong growth in commercial EV sales in the country. We forecast commercial EV sales will increase by 40.5 percent in 2023 to reach around 1,080 units, the report noted.
It also added that “Trucks, pickups, and electric minibusses will gain traction in Qatar as supply chains decarbonise and as more commercial EVs are launched. We forecast average annual sales of 8.1 percent over 2024-2032 and for commercial EV sales to reach a high of just under 2,200 units in 2032. This will represent a commercial EV penetration rate of 15 percent in 2032.”
During the FIFA World Cup held last year, around 25 percent of the transportation buses were electric. In 2022, 800 E-vehicles were sold in Qatar and the country has nearly 100 charging stations.
Recently, Dukhan Bank also announced its first eco-friendly vehicle finance offer valid until this September for all its customers purchasing an electric or hybrid vehicle.
The report underlines that such offers in addition to supplying the vehicles globally like the US, Europe, and Japan will contribute to the growth of Qatar’s EV market in 2023.
