The global automotive landscape is tilting in favour of electrified vehicles as fluctuating fuel prices push buyers away from traditional petrol-powered cars. The trend has also been evident in the UAE, with hybrids and EVs (electric vehicles) becoming more prominent on the streets.

On February 1, 2025, the UAE Fuel Price Committee hiked the petrol rates after two months of unchanged prices. Super 98 petrol was priced at Dh2.74 per litre, up from Dh2.61 in January, while Special 95 increased to Dh2.63 per litre from Dh2.50 the previous month.

While the price hike appears modest, their cumulative effect is pressuring household budgets, already strained by inflation. As a result, the cost-conscious buyer is turning to electric and hybrid alternatives, drawn by their lower operating expenses.

Automakers and dealerships have responded to the shift in sentiment by rolling out competitive discounts and trade-in incentives to accelerate EV adoption. 

Tesla, a dominant player in the segment, has capitalised on this momentum in the UAE.  The Tesla Model 3 Rear-Wheel Drive, for instance, is available for Dh167,990, positioning it competitively against traditional luxury sedans, making it the preferred choice for luxury cab operators in town. 

A similarly equipped BMW 3 Series, by comparison, carries a higher price tag starting at 245000, making the Model 3 a compelling alternative for buyers considering the switch.

Beyond fuel savings, EV owners highlight significantly reduced maintenance costs, as electric motors contain fewer moving parts than their internal combustion counterparts. The UAE’s expanding charging infrastructure is further addressing a range of concerns while bolstering consumer confidence in electrified mobility.

While the upfront cost of an EV or hybrid remains a hurdle for some, long-term financial and environmental advantages are driving increased adoption. 

As fuel prices continue to fluctuate, the momentum toward electrified vehicles in the UAE is expected to persist, reshaping the region’s automotive market for years to come.