Oman’s passenger electric vehicles have a target to reach 10% sales in the domestic market by 2030. To this end, the government is moving forward with collaboration plans with E-vehicle organisations.
Moreover, the Ministry of Transport has also announced recently, that, in line with national vision 2030, it plans to switch over to EVs. In the process, 35 per cent of the total vehicles of its fleet and all public transport will be changed to EV mode in the next 7 years. This initiative is expected to increase the EV market rapidly.
Dwelling on the partnerships by the government and E-vehicle companies, Fitch Solutions analysts say that the market will witness a rising demand and drive passenger EV sales by more than 300 per cent in 2023 to reach year-on-year sales volumes of around 600 units.
Further, E-vehicle sales will see 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 and it would reap economic benefits from lower geopolitical risks in the MENA region. Moreover, diplomatic ties between Qatar and Bahrain will benefit both the country’s economies in several sectors that would boost 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 informed, “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.”
It should be noted that during the FIFA World Cup held last year, around 25 percent of the electric transportation buses were used. In 2022, 800 E-vehicles were reported to be sold in Qatar. The country has around a hundred charging stations.
To further promote the sale of EVs, Dukhan Bank has also announced its first eco-friendly vehicle finance offer, which is valid until this September for all the potential buyers of an electric or hybrid vehicle. The report highlighted that besides such offers and efforts, exporting vehicles to the overseas market like the US, Europe, and Japan will also provide impetus to the growth of Qatar’s EV market in 2023.
