PETRONAS Lubricants International Launches NEV Fluids Business Unit to Address Rising EV Demand
PETRONAS Lubricants International (PLI) announces the launch of its new NEV Fluids Business Unit to support the research, development, and marketing of lubricant solutions specifically designed for the electric vehicle (EV) market.
It will be led by James Mark, former EMEA Marketing Director, in the newly created role of Head of NEV Fluids. In 2022, one in seven passenger cars bought globally was an EV—a sales increase of 60% versus 2021. This figure will only increase as European legislation and incentives to reduce emissions are implemented, as well as a desire by consumers to drive more sustainably.
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Considering the fact that the Middle East has awareness of electric vehicles, especially in the UAE, where 95% of the population is familiar with the concept of owning an electric car and 7 out of 10 consumers are interested in learning about the cost-effective aspects of electric vehicles (EVs), as per a study by General Motors. It is important to note that the obstacles to owning hybrid and electric vehicles differ regionally due to varying costs and infrastructure. Additionally, according to the global electric mobility readiness index published in 2022, the demand for EVs in the UAE market has continued to rise. It is projected to grow at a compound annual growth rate (CAGR) of 30% between 2022 and 2028.
Further, the UAE government launched a National Electric Vehicles Policy that aims to promote the adoption of electric vehicles and outlines a series of measures and targets for the electric vehicle sector. One of the key targets is to have 50% of cars on UAE roads be electric by 2050. The Ministry of Energy & Infrastructure’s (MOEI) UAE Electric Vehicle Policy includes having 914 AC and DC charging stations for electric vehicles by the end of 2023.
Other plans, apart from making the UAE’s car fleet 50% electric by 2050, further include 25% plug-in hybrids (PHEV), with the remainder to be internal combustion engines (ICE), compressed natural gas (CNG), and hydrogen (H2) vehicles. Meanwhile, buses are to be 70% electric, 15% plug-in hybrid, and the remainder ICE, CNG, and H2. The target for trucks in the UAE is 10% PHEV and 40% hybrid, with the remainder being ICE, CNG, H2, or other vehicles.
The ministry is also working to create an EV GCC Corridor and establish fast charging stations on the border between Saudi Arabia and Oman, facilitating the movement of EVs between countries. And, according to the Dubai Media Office, the number of electric vehicles’ green charging stations in the emirate will increase from 370 to more than 1,000 stations in less than three years.
In addition, the Middle East and Africa Automotive Electric Vehicle Market is expected to reach USD 2.70 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 23.20% to reach USD 7.65 billion, as per a study by MarkNtel Advisors Research.
Undoubtedly, the rise in EVs creates new challenges for the automotive and lubricant industries.
