Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The rising popularity of Chinese cars, particularly of the electric kind, was evident at the Electric Vehicle Innovation Summit held in Abu Dhabi this week, where Chinese-made EV brands like Geely, XPENG, MG and Great Wall took up most of the floor space at the ADNEC centre, seemingly pushing the once supreme American Tesla to the kerb.
“This is the biggest change in the automotive landscape since the invention of the automobile,” Dr. Andreas Schaaf, CEO for Geely Group Brands at Albatha Group, said of the accelerated growth of electric vehicles.
“The whole automotive landscape is changing incredibly fast, some of the existing players will disappear while many other will come up to take their place.”
Dr. Schaaf, who has worked in China for five years as well as in the US, said that he had had seen first-hand how advanced the adoption of EV technology had been in China, believing it positioned them perfectly to take the lead in the emerging industry.
“China put a lot of emphasis on electrification a long time ago, other places were not as fast,” he said.
“We see China emerging very very fast, today China is the largest car market in the world and over 50% of the vehicles are electric there, so just think about the scale of their industry.”
Consequently, this early adoption seems to have translated into current dominance. In the UAE, Chinese brands like Jetour and BYD have become commonplace on Emirati roads. Preliminary statistics appear to be telling the same tale.
According to AutoData Middle East’s 2024 Used Car Market Report, Jetour sales surged by a whopping 881.9%, capturing a 3% market share and leading the surge in demand for Chinese cars, which saw a 77% increase in inquiries in late 2024.
Moreover, used car listings on DubiCars show a growing preference for Chinese models, with listings increasing by 56% in 2024, while non-Chinese brand listings declined by 5%.
However, whilst the influence of Chinese vehicles is apparent, it is perhaps too early to declare victory in the race to win over consumers. Elon Musk’s Tesla remains the most dominant player in the EV market with an estimated 43% market share, with sales of the Tesla Model 3 still steadily rising.
Moreover, Japanese automotive giants like Toyota and Nissan still dominate the overall car market and continue to command a strong position and reputation within the GCC.
Future releases of EV vehicles by these brands will likely shake the market, however, what is almost certain is that Chinese cars are no longer a niche purchase for consumers.
