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The US-based HummingbirdEV, a provider of commercial electric vehicle systems, has revealed plans to open a manufacturing facility in the UAE, in a push for e-mobility in the wider Middle East and North Africa region.
The microfactory will enable it to deliver e-mobility solutions for an existing e-commerce customer and leverage the country’s free trade agreements with Southeast Asia, India, and surrounding MENA markets for further expansion of its customer base.
The company will initially focus on catering to the region’s growing demand for mid-mile and last-mile vehicle applications, including refrigerated trucks.
For its UAE expansion, HummingbirdEV has partnered with global investments and advisory firm, IBMC Group.
HummingbirdEV’s announcement comes at a time while the UAE is steering the course in a push for e-mobility as a primary alternative for commercial and private consumption. To facilitate this transition, the country has been heavily investing in its infrastructure for electric vehicles as a part of its efforts to reach zero carbon emissions by 2050.
In recent years, demand for EVs in the UAE market has also witnessed a steady rise and is projected to see a compound annual growth rate (CAGR) of 30% between 2022 and 2028 according to the Global Electric Mobility Readiness Index published in 2022 by the international consultancy firm Arthur D. Little.
(Writing by Bindu Rai, editing by Seban Scaria)
