Oman EV Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Oman EV Market Trends and Insights

Falling Battery Prices & Influx of Affordable Chinese EVs

Over the past decade, plummeting lithium-ion battery costs have enabled Chinese automakers to price their electric vehicles on par with traditional internal combustion engine models. BYD now distributes five models through three Omani showrooms, while MG Motor leverages aggressive financing to challenge Japanese incumbents. Hunan Zhongke Electric’s anode-materials project at Sohar Port will supply 200,000 metric tons annually, shrinking transport costs and import duties for regional battery demand. Vertical integration covering battery cells, vehicle assembly, and bundled charging subscriptions further compresses retail prices, giving Chinese OEMs a first-mover advantage in the Oman Electric Vehicle market.

Net-Zero 2050 & 35% EV-Sales Target by 2035

Oman’s pledge to hit net-zero emissions by 2050 is anchored in a transport-sector plan that seeks one-third of EV sales by 2035. The Ministry of Transport, Communications and Information Technology estimates road transport emitted 15.9 Mt CO₂ in 2024; shifting to electric drivetrains is therefore pivotal to the national carbon budget ^{[1]“Green Mobility Plan 2025,” Ministry of Transport, Communications and Information Technology, mtcit.gov.om} .

Renewable-energy mandates that lift clean-power generation to significant levels by 2029 create a virtuous cycle in which zero-carbon electricity feeds zero-tailpipe vehicles. Public-sector role modeling is visible through Mwasalat’s deployment of electric and hydrogen buses and the Royal Oman Police’s dedicated EV license-plate scheme launched in May 2025. These visible commitments amplify investor interest in domestic battery plants and charging networks, knitting the mobility transition into Vision 2040’s diversification agenda.

Duqm SEZ Battery-EV Manufacturing Catalyst

The Duqm Special Economic Zone is evolving into an integrated hub that links upstream materials, cell production, and final-assembly lines. Mays Motors plans to assemble its ‘Mays Alive’ e-SUV in the zone, leveraging duty-free imports of components and proximity to Hunan Zhongke Electric’s future anode plant. This cluster effect is expected to reduce shipping costs, shorten lead times, and anchor skilled jobs inside Oman. Once operational, the local supply chain could shave several percentage points off landed-vehicle prices, bolstering the Oman Electric Vehicle market’s competitiveness against GCC imports.

Government Mandate for EV Chargers at All Fuel Stations

Mandatory installation of chargers at every fuel station transforms energy-retail economics across the Oman Electric Vehicle market. Shell opened a solar-powered hydrogen-electric hub near Muscat Airport in February 2025, integrating 130 kg per day of green hydrogen output with fast EV charging and signaling a move toward multi-energy forecourts ^{[2]“Shell Opens First Hydrogen-Electric Station in Muscat,” Shell Oman, shell.com} . 

Porsche partnered with Shell to roll out eight DC stations and 125 AC destination chargers, allowing premium brands to fold infrastructure into customer-service propositions. The regulation leverages the existing fuel-station footprint to scale infrastructure quickly, lowering capital barriers and minimizing land-use friction. National standards overseen by the Authority for Public Services Regulation harmonize connector types and tariff structures, preventing fragmentation that could slow adoption. As coverage expands into secondary cities, charging accessibility will lift consumer confidence and catalyze fleet conversions.

Sparse Public Charging Network Beyond Muscat

Most rapid-charging stations are concentrated in the capital corridor, leaving rural highways underserved and heightening range anxiety for long-distance drivers. Commercial fleets face route-planning constraints and may retain diesel back-ups to avoid delivery disruptions. Shell and OQ Group prioritize high-traffic sites to maximize utilization, but this demand-driven approach risks a chicken-and-egg stalemate in less-populated governorates. Government co-funding programs are therefore essential to seed infrastructure in remote areas and de-risk private investment. A more evenly distributed network would unlock intercity tourism and logistics opportunities, broadening the Oman Electric Vehicle market beyond Muscat.

High Upfront EV Cost vs Subsidized ICE Fuel

Although lifetime operating costs favor EVs, Omani consumers still pay subsidized pump prices that blur the savings signal. Electricity-tariff reforms set to phase out cross-subsidies from 2026 will narrow the price gap and lift residential charging costs, partially eroding the EV value proposition. Limited financing products stretch payback periods for middle-income buyers, dampening conversion rates among the largest addressable segment. Policy levers such as interest-rate buy-downs and scrappage incentives could bridge the affordability gap until battery prices fall further.

Segment Analysis

By Vehicle Type: Commercial Fleets Drive Electrification

Passenger cars held 87.13% of the Oman Electric Vehicle market share in 2024; however, commercial vehicles will post a 30.37% CAGR by 2030. The segment's surge stems from predictable duty cycles that align with depot charging, allowing logistics operators to optimize battery utilization during nightly downtimes. Light vans used by e-commerce couriers illustrate the cost advantage, saving an estimated USD 2,500 in annual fuel and maintenance compared with diesel equivalents. Bus operators such as Mwasalat leverage route regularity to maximize regenerative braking and reduce brake-wear costs, reinforcing total-cost savings. 

Logistics operators focused on last-mile delivery currently represent a small share of new commercial-vehicle EV registrations, and their share could double by 2027 if fuel subsidies continue to ease. Government procurement policies that favor electric buses for urban routes further de-risk fleet investments. Commercial-segment momentum signals a structural shift in fleet strategy that will ripple across dealership inventories and after-sales ecosystems.

By Drive Train Technology: BEV Dominance Amid HEV Acceleration

Battery electric vehicles held an 83.41% share of the Oman Electric Vehicle market in 2024, reflecting supportive charging policies and improving range. However, hybrid electric vehicles are poised to expand at a 30.34% CAGR through 2030 as consumers outside Muscat hedge against limited fast-charging coverage. Plug-in hybrids provide daily electric commuting while retaining gasoline back-up for weekend trips, easing range anxiety. Models with advanced thermal-management systems maintain battery health in 50 °C summer heat, a critical requirement under Gulf conditions. OEMs, including Hyundai and Nissan, have begun offering eight-year, 160,000 km battery warranties tailored to regional climate stresses, enhancing buyer confidence.

Standardizing CCS-2 connectors and 150 kW DC charging protocols across public networks simplifies ownership, leveling the playing field for multiple drivetrain formats. Over time, as public chargers proliferate, BEVs are expected to consolidate dominance; yet in the interim, HEVs will serve as an on-ramp for hesitant buyers and rural drivers.

By Battery Capacity: Premium Range Expansion Accelerates

Up to 50 kWh packs anchor the mass Oman electric vehicle market with 63.47% share, powering compact cars and ride-hailing sedans optimized for urban stop-start traffic. Batteries above 75 kWh scale at a 30.41% CAGR and are increasingly featured in premium SUVs that tackle intercity journeys without mid-route charging. Buoyed by rising disposable incomes and a growing demand for road trips, the Oman Electric Vehicle market share is expected to grow significantly over the forecast period. Mid-tier 51-75 kWh batteries cater to family cars, balancing purchase price and range.

Localized anode production at Sohar is expected to shave fairly off battery import costs, narrowing retail price gaps between capacity tiers. High-temperature additives and liquid-cooling plates are becoming standard, extending cycle life despite desert conditions. Time-of-use tariffs introduced via smart meters incentivize overnight charging of large batteries, mitigating grid-peak pressure and lowering owner bills.

Note: Segment shares of all individual segments available upon report purchase

By End User: Government Leadership Catalyzes Private Adoption

Private individual owners commanded 72.35% of the Oman Electric Vehicle market share in 2024, buoyed by personal-import programs and expanding dealership networks. Government and public-sector fleets will grow at a 30.39% CAGR, setting benchmarks through high-visibility deployments and duty-cycle data transparency. Mwasalat’s 15 hydrogen vehicles underscore multi-technology experimentation, while municipal agencies task electric pickups with street-maintenance duties. EV plates introduced by the Royal Oman Police simplify enforcement of parking privileges and potential congestion-zone exemptions, incentivizing corporate fleets to switch early. 

Ride-hailing leaders such as Otaxi are piloting EV-only driver tiers that promise lower commission rates in exchange for verified charging schedules, spurring gig-driver interest. Small-business owners increasingly lease light vans under pay-per-kilometer plans that bundle insurance and charging access. These service innovations, backed by soft-loan schemes from local banks, will broaden the consumer base and reduce the upfront cost hurdle.

Geography Analysis

Muscat anchors three-fifths of national EV registrations, courtesy of dense charging, higher incomes, and an early-adopter culture. The capital’s corridor from Seeb to Muttrah hosts more than 150 kW chargers, enabling intra-city fleets to complete multiple daily duty cycles. Sohar’s industrial cluster is emerging as a secondary pole; battery-materials investment will likely translate into early dealer discounts and job-linked vehicle-purchase programs. Duqm, with its special economic zone, is positioned to host assembly plants and logistics hubs, catalyzing adoption among port services and freight forwarders.

Interior governorates like Ad Dakhiliyah experience lower penetration due to sparse fast chargers and limited dealer coverage. The government's co-location of EV chargers with rural health clinics and police stations will bridge this gap by 2027. Dhofar’s tourism economy stands to benefit from quieter, low-emission transport along heritage routes, and pilot projects already equip eco-resorts with solar-powered chargers. Cross-border corridors with the UAE and Saudi Arabia are under study for CCS-2 interoperability, which would open GCC-wide road-trip possibilities and boost premium-segment demand.

Extreme heat gradients influence charging-station design; Muscat’s coastal humidity requires sealed electronics, while interior desert stations employ shaded canopies and high-flow liquid cooling. Grid-hardening investments synchronize with renewable-energy rollouts, ensuring stable voltage for high-power DC units. Overall, geographic disparities are narrowing as federal incentives and private capital converge on nationwide coverage, broadening the Oman Electric Vehicle market footprint beyond primary urban centers.