With the EV growth slowing globally, the demand has not been in sync with industry predictions made a few years ago. Major players like General Motors, Ford, and Tesla have revised their growth projections and production targets due to slowing demand.

However, for Chinese EV makers who have looked elsewhere to sell their high-tech cars, the Middle East has emerged as a hotspot amid brand perceptions, particularly concerning quality and reliability.

There are a lot of reasons why Chinese EVs have gained traction. “While their competitive pricing initially captured attention, these vehicles have since made remarkable strides in quality and design, which are now key factors influencing consumer preferences. This combination of attractive pricing, innovative design, and high-quality features makes Chinese EVs a compelling choice for consumers in the region,” says Karim Maksoud, Managing Director at Al Habtoor Motors. 

According to Sebastian Fuchs, Managing Director of Digital Products and Services at AutoData Middle East, Chinese car manufacturers are adept at tapping into the evolving preferences of Middle Eastern consumers.

“Chinese automakers like Jetour and BYD have effectively positioned their EVs in the market by offering high-tech, affordable models that resonate with local sustainability demands,” says Fuchs. 

He explains that these vehicles feature advanced technological capabilities, including intelligent connectivity, and provide a competitive value proposition compared to European and American brands, giving Chinese manufacturers a notable advantage in the region’s automotive landscape.

“We’ve seen a significant rise in demand for Chinese electric car brands at an industry level and specifically for Changan products in the Middle East,” says Xiao Feng, General Manager of Changan Automobile’s Middle East and Africa Division. 

There are several reasons why China can potentially lead the EV market. 

“China’s leadership in EVs stems from new energy and advancements in smart technologies. In the current environment, the market and consumer demand have shifted from traditional functional needs to emotional and value-driven needs, emphasizing environmental protection, sustainability, and social responsibility,” says Ling Shiquan, CEO of Geely-owned Riddara, a premium alternative energy automobile brand. 

“This has altered market competition, allowing Chinese automakers to leverage their technological advantages to meet global consumer preferences.” According to Feng, their popularity is driven by favorable government policies, such as incentives and tax reductions, and significant investments in charging infrastructure. These developments have made electric vehicles more accessible and attractive to consumers in the region. 

“Simultaneously, based on market trends from our customers, we’ve noticed a shift in consumer preferences in KSA, UAE, and across the region towards high-tech, environmentally friendly vehicles,” adds Feng. 

A PERMANENT BOOM OR DYING FAD? 

According to Maksoud, the Chinese car market in the UAE has seen a substantial boom in the last few years. This is due to quality, technology, design, presence, and encompassing it all —great value for money. 

Chinese automakers have employed several strategic approaches to effectively penetrate the Middle Eastern market. 

Fuchs believes that a highly competitive pricing strategy that does not compromise on quality and features appeals to price-sensitive consumers. “This is especially evident in the rising demand for Chinese vehicles, which surged 150% in the UAE by mid-2024,” he explains.

According to AutoData’s findings, the average price of a new Chinese hatchback is 34.5% lower than an American hatchback, and a Chinese sedan is 36.5% cheaper than its American counterpart. Chinese car manufacturers have also established solid local partnerships, enhancing their distribution networks and service support in key markets in the UAE, explains Fuchs.

Chinese brands such as Seres and Lotus have gained consumer trust by offering warranties and after-sales services that align with global standards. Their investments in local production and assembly facilities also contribute to their competitive edge, ensuring faster delivery times and local customization. 

Fuchs cites an example of how, in the UAE, Chinese brands offer highly competitive after-sales offers such as extended warranties, free insurance, and servicing periods, making owning a Chinese vehicle very affordable. 

“Despite the significant progress made, Chinese brands still face challenges related to brand perception, particularly concerning quality and reliability,” Fuchs says. 

“Consumers have shown a preference for established European, Japanese, and American brands due to their long-standing reputation,” he adds.

IS PRICE THE ONLY FACTOR?

While brand recall and perception are crucial, one significant contributor to the perception of Chinese brands is their affordability and price tag. 

“Value is a more important factor than price. This value encompasses not only the driving experience and after-sales service but also a new lifestyle,” says Shiquan. 

Further, Shinquan says that although Chinese automotive brands have made significant progress in the new energy sector, especially in smart technology and vehicle connectivity—including advancements in autonomous driving and AI applications—they provide users with an advanced driving experience. 

He cites RIDDARA RD6 as an example. It combines sports car-level acceleration, four-wheel-drive pickup capabilities, and a series of impressive high-end features like ADAS, but it also has AGMC’s after-sales service reputation, with a starting price of $37,850. . Maksoud says that while price is an essential factor for consumers considering a Chinese electric car, the focus is increasingly shifting toward quality and value for money. “Many buyers are drawn to these vehicles not just because they are competitively priced, but because they offer impressive features, advanced technology, and superior build quality at that price point.” 

He adds, “Consumers are more aware now, and they seek a balance between affordability and the assurance of quality, making value for money a key consideration in their decision-making process.” Maksoud cites an example of Habtoor Motors’ latest launch, the JAC e30x, which marks the company’s first EV in the Middle East; its growing demand exemplifies the ambition to meet the evolving demands of the market.

According to Feng, electric vehicles’ appeal goes beyond cost savings; it’s also about their superior driving experience. He says, “Many consider driving an electric vehicle a step up from traditional automobiles, especially as most EVs have innovative features and technology.” 

According to Feng, Chinese electric vehicle brands like Changan hold a significant competitive edge in the UAE market thanks to their “robust and mature new energy vehicle industry chain and affordability.” He emphasizes that this advantage enables them to “swiftly adapt to market demands” and drive technological innovation.

Feng notes that Changan has tailored its products specifically for the Middle Eastern market, incorporating features like a prayer compass to respect local traditions and enhance user experience. Highlighting their commitment to customer satisfaction, he added that Changan is “on track to launch a dedicated parts center in the region” and is partnering with Huawei Cloud to deliver smarter connectivity solutions. Beyond their appeal and projected dominance, the availability of charging infrastructure is a critical factor for its success in the Middle Eastern market. 

According to Fuchs, the UAE has made substantial progress in expanding its EV infrastructure, with plans to reach 10,000 charging stations by 2030. “As more consumers adopt EVs, a robust and accessible charging network will be essential in alleviating concerns about range anxiety and charging convenience. Chinese manufacturers will benefit from this growing infrastructure. Still, they must also focus on offering vehicles compatible with local charging standards and continue partnering with governments and private entities to enhance the infrastructure further,” says Fuchs.

With the popularity of the Chinese EV market continuing to rise, Shinquan cites a report by the International Energy Agency, which outlines that China is the world’s largest producer of EVs, accounting for 60% of global electric vehicle sales in 2023, a 38.6% increase from the previous year. 

“Amidst a slump in demand and production in the US and Europe, that leadership has only strengthened,” says Shinquan.