Can a 258mph electric hypercar persuade Dubai to abandon its gas-guzzling vehicles?

According to its creators, the 1,914-horsepower Rimac C_Two hypercar can accelerate from 0 to 60 mph in under two seconds, placing it among the world's fastest cars. With a top speed of 258 mph, it outpaces the Bugatti Veyron, and its 340-mile driving range is equally impressive.

Yes, this speed machine is fully electric. And no, it's not surprising.

EV Lab was established by Kevin Chalhoub, a Dubai-born French-Lebanese entrepreneur with a background in clean energy and environmental engineering. After working in the solar industry abroad, he returned to Dubai to promote his green initiatives in a city known for luxury cars.

“Electric cars are an ideal fit for this market,” he says. High-performance EVs can accelerate faster than their gasoline counterparts, and Dubai's shorter driving distances compared to Europe mean drivers have less concern about battery range.

Customers fall into two main categories: “eco-conscious millennials” (including Chalhoub himself) and “tech enthusiasts” who prioritize performance. He believes electric vehicles meet both needs. “Every year, EV prices drop while performance continues to rise,” he says.

“Today, electric cars are a premium choice,” he explains. “Sustainable solutions are often seen as a lifestyle sacrifice, but this market is different.”

Throughout the pandemic, the company has shifted to online sales, delivering cars directly to potential buyers for test drives. “The test drive is key,” says the founder, “we believe these vehicles essentially sell themselves.”

Bloomberg New Energy Finance reports that global sales of passenger EVs more than quadrupled from 2015 to 2019. While EVs accounted for just 3% of global passenger vehicle sales in 2020, projections show this will increase to 10% by 2025 and 58% by 2040.

Isam Arshad, senior analyst at Euromonitor International, tells Dinogo that recent consumer awareness campaigns, incentives, and increased variety in the UAE have driven “tremendous growth” in the electric vehicle sector, with sales expected to rise by 35% from 2020 to 2025.

However, Dubai is starting from a relatively low point. The Dubai Road and Transport Authority reported only 1,841 EVs registered in the emirate by the end of 2019, with electric and hybrid vehicles making up just 0.44% of all registered vehicles. In comparison, EVs and hybrids made up 1.3% of vehicles in London and 4.6% in California.

Dubai’s policymakers are actively encouraging EV adoption. The government has mandated that by 2030, at least 30% of public sector vehicles must be electric or hybrid, with a goal for EVs to make up 10% of all vehicles sold in the emirate. Hundreds of free public charging stations, provided by DEWA, are spread across the city, and free public parking for EVs registered in Dubai will be available until July 2022.

“The UAE is an ideal place to own an electric car, and the government has long been advocating for this transition,” says Arshad.

Chalhoub suggests there are additional ways to encourage the shift to electric. “I would argue that we're not yet at the incentive levels seen in Europe,” he says, where many EU countries offer various incentives, including tax breaks and purchase bonuses for EVs worth thousands of euros.

In April, EV Lab plans to host a stop on Rimac’s global C_Two tour, giving potential buyers the chance to test drive the hypercar at the Dubai Autodrome. The company will also open a showroom in the city in September.

Chalhoub, speaking both as a businessman and environmentalist, is optimistic about the industry's future: “Driving a combustion engine now is like riding horses when the car was first introduced.”