Oman Electric Vehicle Market Research Report: Forecast (2025-2030)

Market Definition

Electric vehicles (EVs) are automobiles that are primarily powered by electricity stored (and sometimes even generated) on board the vehicle in batteries. These vehicles are generally seen as cleaner forms of transport as compared to conventional internal combustion engine (ICE)-powered vehicles because of minimal or zero emissions.

Market Insights and Analysis: Oman Electric Vehicle Market (2025-2030):

The Oman Electric Vehicle Market size was valued at around USD 200 million in 2024 and is projected to reach USD 831.28 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 26.80% during the forecast period, i.e., 2025-30. This high growth is likely to be driven by government mandates on emissions, policy support for rapid adoption, and an expanding charging infrastructure.

The Omani government has committed to net-zero emissions by 2050, which also includes a complete transition to EVs by that date. The government also has an interim target for a 15% transition to EVs by 2030. These mandates are encouraging vehicle manufacturers to develop and offer various EV technologies to gradually replace ICE vehicles to meet the country’s net-zero commitments, driving market demand for EVs in Oman.

EV adoption in Oman is further supported by various policies that are making the purchase of EVs more attractive compared to ICE vehicles. The government's exemption of registration charges and Value-Added Tax for EVs is reducing the cost of EVs to some extent. The government also levies 0% import tariffs on EVs, which is significant as most EVs available in the country are currently being imported from outside. These policy initiatives are increasing market demand for EVs by reducing the difference between the cost of an EV compared to an ICE vehicle.

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Moreover, the market demand for EVs is also supported by an expanding charging network across the country. The number of public chargers is estimated to grow from 200 at the start of 2025 to 350 by 2027. This expansion includes installations at key vehicle interaction points such as fuel stations, which is mandated by the government. This reduces the effect of limited driving range on the viability of EVs, supporting further consumer adoption and driving market growth & expansion.

Oman Electric Vehicle Market Driver:

Government Mandates and Policy Support Driving Market Demand – The EV industry in Oman is primarily being driven by the government’s targets as well as policy support for faster adoption of EVs. The government is shaping market demand through a phased transition to EVs by 2050 that includes a 15% target for 2030. This is encouraging industry players to invest in EVs and supporting infrastructure to hasten EV adoption across the country. This is highlighted in the government’s 2024 mandate that made it necessary for fuel stations to install EV chargers. It has also facilitated the formation of Electric Vehicles One (EVO), a JV between the Oman Oil Marketing Company (OOMCO) and New Zealand-based Synergy Investments that is working on the development of charging infrastructure in the country.

The government is also encouraging consumers to opt for EVs by offering various incentives that make them a viable transport alternative. It has waived the registration charges and the standard 5% VAT for EVs, along with a 100% exemption on import tariffs. This has helped to reduce the cost of EVs by 10-20% making them a more attractive option. EV owners are also offered free public charging at several locations, which reduces running costs while providing quick and convenient charging options. Government initiatives are thus driving market demand for EVs in the country.

Oman Electric Vehicle Market Opportunity:

Local Manufacturing and Assembly to Boost EV Adoption – The players operating in the Oman EV market can boost demand by manufacturing and assembling EVs locally. This can reduce the upfront costs of EVs for consumers by eliminating logistics costs incurred in the import of EVs from outside. It also uncouples the cost of EVs in the market from exchange rate fluctuations, reducing price volatility and promoting consumer confidence.

Local assembly would steer product development towards models that are better suited to Oman’s climate and road infrastructure. This would enable better product-market fit and potentially drive market demand by making EV ownership and operation hassle-free and efficient. Moreover, technology localization would accelerate capacity development and allow Oman to act as a regional export hub for the broader Middle East and Africa region. This would give it the required economies of scale to further optimize processes and reduce costs, boosting market demand for EVs.

Oman Electric Vehicle Market Challenge:

Limited Charging Infrastructure Coverage and Hot Climate Slowing EV Adoption –  Although the charging infrastructure in the country is expanding, most of these chargers (60%+) are concentrated in Muscat and other coastal cities. This is limiting EV adoption to urban buyers who are primarily using these vehicles for city commuting. With limited charging penetration in the inter-city highway networks like Muscat-Salalah (~1000 km), EV adoption by fleet operators and even personal owners looking for inter-city travel is extremely limited.

The inconvenience caused by the limited scope of the charging infrastructure is further amplified by the climate conditions in the country. Most areas in Oman have consistently high temperatures (40∘°C+) during the summer months. This reduces the efficiency of charging EV batteries through public fast chargers and also increases cooling requirements, which reduces the driving range. Moreover, consistent operation in extreme temperatures may affect the storage capacity and life span of batteries over time, which also raises concerns about costs and the frequency of EV battery replacement.

Oman Electric Vehicle Market Trend:

Hybrids Bridging Market Transition to BEVs – Hybrid vehicles are vehicles that still have engines but use them as an intermediate or an additional source of power instead of fully relying on them. Technologies such as strong hybrid and plug-in hybrid are seen as transitional alternatives to battery electric vehicles (BEVs). Oman is thus seeing a rise in the adoption of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) as the market is not mature enough for a complete transition to BEVs, with hybrids constituting 65-70% of the electrified vehicle market.

Hybrids are offering a practical alternative to BEVs until the technological, economic, and behavioral ecosystem in the country develops significantly. The availability of an ICE provides consumers the flexibility to switch to ICE power in case of long-distance travel, where chargers are not easily accessible. It also provides a buffer against the operational constraints due to extreme climate conditions. Hybrids also cost up to 20-30% less than BEVs, which makes them easier to afford too. Hybrids thus offer a relatively cost-effective and risk-free way for consumers to adapt to EVs and are likely to continue to shape the Oman EV Industry.

Oman Electric Vehicle Market (2025-30): Segmentation Analysis

The Oman Electric Vehicle Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025-2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Passenger Vehicles
• Two-Wheelers
• Commercial Vehicles

Passenger vehicles form the dominant segment based on vehicle type, with an estimated market share of around 70-75%.  This segment overarches other segments in this category because of an ecosystem that favors higher adoption in this segment as compared to others. Oman has a preference for personal mobility solutions over commercial transport due to a relatively low population density. Unfavorable climate conditions and limited social appeal have largely restricted EV adoption to cars, as consumers see them as more palatable options compared to two-wheelers.

Passenger vehicles also dominate the market because this segment has a wider range of products available for consumers, including offerings from global brands such as BMW, Hyundai, Porsche, Nissan, and others. The charging infrastructure in the country is mostly tailored to passenger vehicles and offers limited compatibility with other vehicle types. With the country’s ecosystem largely focused on the adoption of passenger vehicles, the segment is likely to dominate the Oman EV Industry during the forecast period.

Based on Battery Type:

• Lithium-ion Battery
• Lithium Titanate Oxide Battery

Lithium-ion batteries form the dominant segment based on battery type, with an estimated market share of around 90-95%. Most EVs in the market use this battery type, as lithium-ion is the global standard for light vehicles due to several advantages. These batteries offer a relatively higher driving range because they have greater energy density and allow more cells to be packed in a limited space on EVs. These batteries are also cost-effective because they are cheaper to produce and are easily available around the world. This is highlighted by the significant drop in the average global price of lithium-ion batteries from USD 137/kWh in 2020 to USD 100/kWh in 2024.

EV manufacturers in Oman continue to offer products like the Nissan Leaf and the Hyundai Ioniq range with lithium-ion batteries because most global platforms utilize this battery type. The dominance of this segment is thus likely to continue as Oman continues to incentivize the adoption of global platforms. Lithium Titanate Oxide (LTO) batteries find limited adoption as their benefits of faster charging and longer battery lifespan are limited to specialized market segments because of a lower range and higher cost.

Oman Electric Vehicle Industry Recent Development:

• February 2025: Mays launched the Alive SUV, Oman’s first EV from a homegrown brand, signaling a pivotal shift towards local EV manufacturing.
• April 2024: Tesla entered Oman by launching the Model 3 and Model Y through local distribution partner Al Jenaibi International, turning consumer focus on the country’s EV market.

Gain a Competitive Edge with Our Oman Electric Vehicle Market Report

1. Oman Electric Vehicle Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Oman Electric Vehicle Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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