Investment thesis

• Large market opportunity:
  • With increasing awareness and rising fuel prices, demand for EVs is picking up with the addition of 217K vehicles in UAE in CY24 with Toyota dominating the market by holding 30% market share
  • Multiple EV manufacturers are present in the UAE with models across price range, from economical (US$ 40K to US$ 80K) to luxury (above US$ 80K); Hyundai, Mercedes, BMW and BYD are the new entrants in UAE
  • Charging infrastructure is developing, with 81% of chargers being slow chargers and 19% fast chargers, and the number of charging stations is expected to grow as the number of BEVs in the country increases
• Potential of EV to substitute existing system:
• Significant y-o-y growth in BEV sales despite downturns, presence of multiple manufacturers across various price points, and strong institutional push for supply side innovations are going to accelerate EV adoption in the country.
• Dubai has successfully converted 70% of its taxi fleet to BEVs and HEVs
• Electric vehicles are more cost-effective than ICE vehicles, with e-ride hailing companies in Dubai achieving an average earnout of 15%-22% when using a battery replacement model
• Number of BEVs is projected to grow at a CAGR of 19% from CY24 to CY29 in UAE
  
• Charging infrastructure is developing, with 81% of chargers being slow chargers and 19% fast chargers, and the number of charging stations is expected to grow as the number of BEVs in the country increases
• Potential of EV to substitute existing system:
  • Significant y-o-y growth in BEV sales despite downturns, presence of multiple manufacturers across various price points, and strong institutional push for supply side innovations are going to accelerate EV adoption in the country.
  • Dubai has successfully converted 70% of its taxi fleet to BEVs and HEVs
• Electric vehicles are more cost-effective than ICE vehicles, with e-ride hailing companies in Dubai achieving an average earnout of 15%-22% when using a battery replacement model