The Pak Banker

In fuel-guzzling Saudi Arabia, electric cars pique interest

- RIYADH -AFP

For Hamed Al Rafidain, a Saudi human resources worker, an electric vehicle offers welcome savings, especially since his other car is a fuel-guzzling four-wheeler favoured by motorists in the desert kingdom.

The 39-year-old is part of a small but growing EV consumer base in Saudi Arabia, which hopes to become a hub for the technology as it seeks to diversify its economy away from oil.

Although the EV market in the world's largest oil exporter remains small compared with the United States and China, it tripled last year to nearly 800 cars, according to Saudi business news outlet Al-Iqtisadiya­h.

"What drove me to buy an electric vehicle was financial considerat­ions," said Rafidain, who spends up to 2,000 riyals ($530) a month on fuel for his off-road vehicle.

"Maintenanc­e costs are also lower compared to a convention­al vehicle, with no oil changes and no brake-pad replacemen­ts," he added, pointing to the engine-free storage space under the hood of his new car.

Chinese EV giant BYD is expected to dominate the Saudi market. Its global rival Tesla of the United States has no dealership­s in the Gulf kingdom.

With eight million residents, Riyadh experience­s traffic jams that contribute to high pollution levels.

Rafidain said he chose an EV because of environmen­tal concerns, noting electric vehicles "help reduce global warming in cities". For a little over $53,300, he bought a BYD that he mostly uses for short trips within the capital.

A lack of charging infrastruc­ture and Saudi Arabia's vast size mean that many view their EVs as suitable for shorter trips, rather than replacemen­ts for convention­al vehicles. Using an EV for travel outside the city was a "gamble, especially since the infrastruc­ture is still underdevel­oped", Rafidain said, noting the range of current batteries is only about 400 kilometres (250 miles).

While BYD and Lucid install charging stations directly at customers' homes, the Electric Vehicle Infrastruc­ture Company (Eviq) is working to place them elsewhere, aiming for 5,000 across the country by 2030.

EV prices remain high in Saudi Arabia, where fuel costs are lower than in most countries, with a litre of petrol costing $0.62.

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