The UAE is currently facing a significant imbalance in its electric vehicle (EV) market, as surging consumer interest clashes with severe supply chain disruptions caused by the closure of the Strait of Hormuz. With the vast majority of EVs imported by sea, the shift toward longer shipping routes around the Cape of Good Hope has added weeks to delivery times and introduced hefty war-risk surcharges. Industry leaders, including Cars24 Arabia CEO Abhinav Gupta, note that demand for EVs and hybrids has jumped significantly—up to 20 percent higher than last year—largely driven by rising fuel costs and the desire for more economical transport. Consequently, dealers are struggling with depleted inventories, pushing wait times for popular electric models to as long as five months.

As new vehicle supplies tighten, the pricing landscape for both new and used cars is undergoing a drastic transformation. Logistics costs and insurance premiums are being passed down to consumers, resulting in a 10 to 15 percent hike in new EV prices, while the pre-owned market has seen a stark divergence: petrol car values are sliding as running costs mount, while used EV prices are climbing due to scarcity. This supply-demand gap has created a unique opening for newer, agile automotive brands to gain a foothold. Many consumers, frustrated by long waits for established models, are becoming increasingly open to alternative manufacturers that can guarantee better availability, reliable aftersales support, and competitive technology.