26 January 2009
Dubai: Dubai's transport regulator Roads and Transport Authority (RTA) and Toyota Motor Corporation are in final stage of testing out hybrid vehicles for the UAE market, a senior Toyota official said.

"We have supplied some hybrid vehicles to the RTA to test out for the local market. It is going ahead without any complaints," Hajime Sakaguchi, Toyota's general manager for Oceania, Middle East and South Asia Marketing Division, told Gulf News on Sunday.

If the tests are proven successful, then Toyota and its UAE distributors Al Futtaim Motors will roll out hybrid Toyota and Lexus vehicles soon.

With the oil price hitting $147 (Dh540) per barrel in July 2008, consumer demand for hybrid and green cars went up significantly.

US consumers have reduced their travel significantly in recent months, partly due to recession and partly due to oil prices.

Although the oil price is trading at less than a third of the July 2008 peak price, consumers worldwide remain cautious as oil market continues to show signs of volatility.

This prompted the RTA to introduce green cars in its taxi fleet last year on a test case basis.

"Once we get green signal from the RTA, we will begin supplying them for the UAE markets," he said.

"There is a growing demand for hybrid cars. However, in the UAE and the Gulf, consumers are wary of the high price."

Simon Frith, managing director of Al Futtaim Motors, echoed, saying, "We are waiting for the results as well. Once that is done, we will bring in the vehicles to the market," he said.

Recent market conditions have seen sales decline significantly, Frith said, his company remains focused on delivering high quality services to the customers.

"This year will be a challenge for all, to match sales target. We continue to serve the market with some of the best products in the automobile market. Our customers could benefit well from the low cost of ownership of vehicles," he said.

By Saifur Rahman

© Gulf News 2009