UAE Fuel Prices Rise: Are Drivers Switching to EVs?

John (0:01)

It's the Morning Drive at Mira Business FM. In the next day or so, you and your motorists are going to find out if there's going to be another fuel price increase in November. So fresh questions about how drivers choose their next car. Following October's increase, are more buyers turning to electric vehicles, to hybrids, to fuel-efficient models? That's a question. Joining us is Craig Stevens. He's the CEO of DubiCars, which is an independent online car market place.

As Google puts it, an export demand generator in the UAE. So welcome, export demand generating Craig. Nice to meet you.

Craig Stevens (0:39)

Well, I think I've never been called that before. So thank you very much.

John (0:42)

No, that's very much a Google phrase, but I liked it. I want to cover buyer trends, the automotive market, then whether we should buy now or wait for end of year deals, whatever the best idea is. But I wanted to start, Craig, with changes, if any, that you've seen in car buyer behavior following the fuel increases that we've kind of increasingly seen.

Craig Stevens (1:06)

Yeah, I mean, short answer is absolutely yes. So, I mean, there's loads for us to unpack today about everything that's going on in the car market and everything that's having a dynamic on the car market, but fuel prices are definitely having an impact on how...

John (1:19)

Is that your way of saying you need more time?

Craig Stevens (1:21)

I need at least four hours.

John (1:23)

Good, I'm here.

Craig Stevens (1:24)

Good man, good man.

Yeah, look, I think if we ever wanted a way of getting people into EVs, it is clear you need to put up petrol prices, because that is the one thing that is driving more interest than anything else. So, if we look back to the petrol price increases that we've seen, obviously, the last one was big. I think it was 16.9% of whatever the month-on-month jump was. But actually, if you go back to pre-conflict levels, petrol prices have increased by 85%. Yep. That's a lot.

John (1:55)

It is.

Craig Stevens (1:56)

And that is definitely driving a different behavior. And it's almost instant. What I love about DubiCars is I feel like we're a real barometer for what's going on in the world in terms of cars. Because as soon as those petrol prices went up, and as soon as people were stuck the night before trying to get petrol from a petrol station, demand for EVs and hybrids just spiked instantly.

So why is that? Well, I think firstly, obviously, cost. Secondly, is convenience.

EVs are more convenient, hybrids are more convenient than petrol cars. And that change happened almost overnight. So if I look at our hybrid demand now year on year, hybrid demand is up 85, 90% year on year. And if I look at what I'm seeing from the EV market, that's up 30, 40% almost month on month with the increase in cost and fuel. So yeah, it definitely changes behavior.

John (2:55)

Well, see, that would be my imagining in my head. It makes sense to me with where I live. Could I put a charger in my... No, probably that would be difficult with the landlord to do that. Maybe I could do it. So a hybrid would be where I would go first. And I'd be honest with you, for the first time in...

Really for the first time, I'm starting to think maybe I should. Yeah, and that would be my first port of call.

Craig Stevens (3:21)

Look, I think hybrid is a very logical step.

And I think what the Chinese have done brilliantly is they've tapped into that expanding market and they've brought a whole range of models to the market, at very affordable prices, that just make that step quite easy, I think. So I think you're right. I think hybrid kind of gives you the best of both worlds. You don't have to panic around range anxiety and running out of power, but it gives you all that convenience and it gives you the cost saving. So yeah, I'm a big hybrid fan, but I haven't made the switch yet.

John (3:56)

What do you drive?

Craig Stevens (3:57)

I drive something that is very expensive to drive. I've got a Ford Raptor, which is very expensive to fill.

John (4:05)

Because why not?

Craig Stevens (4:06)

Well, I was a, I did the typical British thing, didn't I? I came over and thought, what could I not afford to have in the UK? I'll buy one of those over here. And a 6.2 liter Raptor felt like the obvious choice.

John (4:18)