Porsche has outlined its strategy for electric vehicle adoption in the Middle East, where low fuel costs continue to favour internal combustion engines (ICE).
While electro-mobility represents the future of automotive manufacturing, the transition timeline varies by region, Oliver Blume – the global chief executive officer of the German automobile company – told Arabian Business during an exclusive media round table.
Blume’s comments came on the side lines of the annual Icons of Porsche (IOP) event. Ticketed for the first time ever due to high volumes of fans from the Porsche community, the fourth edition of IOP took place on November 23 and 24.
Porsche eyes e-fuels as Middle East EV transition solution
“I’m convinced there is a lot of potential for electric cars. We can see it with the [Porsche] Taycan and Macan. We will have a period of transformation that differs across regions,” Blume said, further highlighting China’s rapid EV adoption, where over 50 percent of new car sales are new energy vehicles.
“China shows – when all the conditions are prepared – fantastic products, right pricing, charging infrastructure, low energy costs, and support for entry models,” he said.
Nevertheless, in the Middle East, where fuel prices remain relatively low compared to global rates, Blume explained that e-fuels have the “opportunity” as a transition solution. “e-fuels provide the opportunity to drive combustion engines with close to zero emissions,” he said.
Porsche has established a pilot plant in South America to produce these synthetic fuels, targeting regions with unlimited renewable energy potential like the Middle East’s solar resources.
The company is in “discussions” with state oil companies from the world over about e-fuel technology, Blume revealed. “It’s better to talk about a practical concept than a theoretical one. Porsche has the proof point as a pioneer,” Blume explained.
Blume also said that the UAE is a key market for Porsche, adding that sustainability and decarbonisation are crucial priorities alongside technological advancement. The effectiveness of battery-electric vehicles in reducing carbon emissions depends significantly on the energy mix in different regions of the world, he explained, adding that when powered by renewable energy sources, battery-electric vehicles are excellent tools for decarbonisation.
“As Porsche, we are also aiming for this, with a very ambitious target of becoming carbon neutral by 2030. There is still a lot to do, and a long way to go – but we are an icon in the automotive industry – and we aim to become a role model for decarbonisation,” Blume said.
‘The customer decides, but the offering must be convincing’, says Porsche chief
The Porsche executive also explained that the UAE’s low fuel costs remain attractive to potential automobile buyers as it is “easier” to buy an ICE vehicle rather than an EV, which is why the technology needs to be “convincing.”
“Driving an EV is very comfortable, and delivers power that combustion engines can’t match. We are seeing that customers who have the opportunity to their own charging infrastructure readily embrace electromobility. However, reaching customers without personal charging capabilities presents a harder challenge,” he said, adding that the situation varies significantly by region.
“In the Middle East and China, the charging infrastructure landscape is quite different. In Europe, we see mixed progress – the UK and France have excellent infrastructure, Germany is making progress, while Spain and Italy are still developing. The charging infrastructure presents a big role for us, because we are playing in a segment where many of our customers can install their own charging infrastructure.
Blume further detailed a few interesting trends in emerging markets like Brazil and India – particularly in the premium segment, where customers are eager to embrace electro-mobility because it’s perceived as cool, modern, and innovative.
“However, there’s still progress to be made,” he concluded.
Follow us on
