Dubai-based Al-Futtaim Automotive is set to introduce battery electric vehicles from the start of 2022 as the company drives forward its pioneering approach to sustainable transport.
Al-Futtaim was the first to launch hybrid electric vehicles in the UAE back in 2008 with Al-Futtaim Toyota and Lexus and is currently playing a major part in the hybrid taxi and limo fleets operating across the country.
“I believe that the demand for hybrid vehicles will continue to grow in the years to come as current owners are expected to upgrade to newer hybrid models while more and more people will realise the benefits of hybrid mobility,” Vincent Wijnen, senior managing director, Al-Futtaim Automotive, told Arabian Business.
“We support the piloting and ultimately introduction of fuel cell electric vehicle technology with test fleets and in close cooperation with key stakeholders. Al-Futtaim will also introduce battery electric vehicles from the beginning of next year across a number of brands.”
Wijnen was speaking as the company opened its new pre-owned car showroom at Dubai Investment Park – Al-Futtaim Automall DIP – its second branch in the emirate, which has 1,200 cars in stock.
According to research by Frost & Sullivan, the pre-owned car market is anticipated to experience a double-digit growth rate over the next five years; from a market size of $14.2 billion in 2020, it is expected to reach $18.2bn by 2025.
In line with that, Wijnen said he expected 2021 sales to be 10 percent higher in volume than 2019, boosted by a shift towards small and mid-size SUVs, which now make up 50 percent of sales.
Vincent Wijnen, senior managing director, Al-Futtaim Automotive.
“It was this increase in demand that led us to make the decision to open an additional facility closer to customers in the south of Dubai, an area which is likely to witness exponential growth in the coming years,” he said.
Al-Futtaim currently boasts a 40 percent share of the market in the UAE, which is being fueled by strong results in business areas including cars, bikes, commercial vehicles and industrial equipment.
Wijnen said: “In terms of our performance, we are seeing a positive underlying trend, as is an indicator of the state of the overall economy which suggests business confidence is bouncing back. If we look back at the last ten months, overall, the market is up 18 percent vs 2020, but the market is still down 11 percent vs 2019, which is the last robust benchmark pre-Covid.”
Follow us on
