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UAE EV demand outstrips supply as waitlists stretch to 5 months due to Hormuz closure
Fuel price hikes are pushing more buyers towards hybrid cars, but a collapse in Strait of Hormuz shipping traffic has left dealers struggling to restock
- PUBLISHED: Tue 7 Jul 2026, 11:12 AM UPDATED: Tue 7 Jul 2026, 11:22 AM
Demand for electric vehicles (EVs) in the UAE is running well ahead of supply, as steep fuel price rises push buyers towards hybrid cars as the shipping crisis in the Strait of Hormuz disrupted imports, said industry executives.
Auto industry players suggest that the timing in the spike in demand could not be worse for supply chains due to Hormuz challenges.
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Abhinav Gupta, CEO of Cars24 Arabia, said the platform has seen EV and hybrid demand run 15 to 20 per cent above last year’s levels, while enquiries for affordable Chinese EV models are up more than 30 per cent since the conflict began on February 28, 2026.
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“The problem is timing. Demand surged exactly when the import pipeline shut. Almost every EV sold in the UAE is imported, mostly from China, so supply cannot respond the way it normally would,” he said.
Prashanth Ranganath Rao, CEO of VinFast Middle East, said the UAE’s EV market “continues to grow strongly, driven by rising consumer interest, supportive government policies, and expanding charging infrastructure.”
He added that rising fuel costs have further strengthened demand, noting that some fully electric models cut running and maintenance costs by roughly 60 to 70 per cent compared with similar petrol SUVs.
5 months waiting list
Since nearly all EV stock reaches the UAE by sea, the disruption has hit inventories hard.
Following the closure of Hormuz, Gupta added that rerouting shipments via the Cape of Good Hope added 10 to 14 days to delivery times and brings war-risk surcharges of up to $3,000 per container.
He added that a major UAE dealer group being tracked by Cars24 Arabia has held EV inventory in single digits all quarter, compared with more than 600 petrol cars in stock.
Dealers sold through their EV stock in March and April, and replenishment has yet to arrive, pushing waitlists for popular models to between three and five months, he said, adding that many buyers are turning to hybrids instead, which remain easier to source.
Gupta said the same dealer’s hybrid inventory has more than tripled since January.
Rao said his firm has avoided major disruption through careful planning and remains well positioned to meet growing market demand through strong supply chain planning, healthy vehicle inventory, and a robust dealer network.
Prices climbing
Abhinav Gupta of Cars24 Arabia said new EV on-the-road prices in the UAE have risen 10 to 15 per cent, driven by higher logistics costs and war-risk insurance premiums being passed on to buyers.
The used car market is showing an even sharper shift.
Petrol car values have dropped around 15 per cent since the start of the year as running costs rise, while used EV prices are holding firm. Gupta said the combined effect has swung the value gap between an EV and a comparable petrol car by 15 to 25 per cent in the EV’s favour.
“For the first time in this market, scarcity is setting EV prices, and a used EV can be worth more this month than it was last month,” Gupta said.
Rao said price rises have not been uniform across the industry.
“While logistics and supply chain costs have increased across the automotive industry, there has not been a uniform rise in EV prices across the UAE and GCC. Pricing impacts vary by manufacturer,” he added.
A window for new entrants?
Asked whether the supply-demand gap gives newer, more agile EV brands a chance to win market share from established names facing longer waiting lists, Rao said buyers are increasingly open to exploring new brands that offer strong value and reliable availability.
“Our focus is on delivering a compelling EV proposition through competitive pricing, industry-leading warranties, strong aftersales support, and advanced technology,” he said, adding that the aim is to make the switch to electric mobility “easier and more accessible” for customers.
