NEW DELHI: India will roll out nearly 100,000 battery-powered buses and autorickshaws onto its sulfurous city streets in the coming weeks, setting it on the bumpy road to making new vehicle sales all-electric by 2030.
India, one of the world’s most polluted nations, has one of the most ambitious plans to kick its fossil fuel addiction.
Analysts said the target is “daunting.”
Transport is a major source of India’s carbon emissions and the Greenpeace group blames at least 1.2 million deaths a year in the country on pollution.
Getting off diesel and petrol would improve the nation’s health and bolster India’s bid to meet the bold climate change targets it pledged in Paris in 2015.
India is not alone in wanting all-electric cars, though it is aiming to go faster than others.
Britain and France have said they want to end the sale of fossil fuel cars by 2040.
But electric and hybrid models make up just three percent of all cars on the road worldwide, say London-based consultancy firm PwC.
That figure is even lower in India, underscoring the enormity of Prime Minister Narendra Modi’s electric challenge.
On top of gradually bringing in electric rickshaws and buses in New Delhi, the government has issued a tender to auto makers for 10,000 cars to replace pollution producers at four government ministries.
“To go all electric is a daunting task,” said PwC partner Abdul Majeed.
“Electric vehicles have a few huge challenges to deal with before they can take off in a big way.”
The government does not want to pay for a network of charging stations for millions of future green motorists to power up depleted car batteries.
Instead it hopes private energy companies will invest in “swapping bays,” where drivers can exchange empty batteries for fresh ones, Ashok Jhunjhunwala, principal adviser to the power minister and the official spearheading the efforts, told AFP.
It plans to lease batteries separately for public transport and taxi fleets. It also wants more work on smaller, easier to use batteries.
Amara Raja Batteries, an Indian battery manufacturer, would be part of the “swapping model,” said its chief executive S. Vijayanand.
“The headache of managing and charging the battery will not be with the driver then,” he said.
Other ideas include setting tougher efficiency standards so new vehicles use less power.
“The idea is to keep it as low-cost as possible,” Jhunjhunwala said. “Vehicles and chargers must happen without subsidies and must make business sense.”
Mahesh Babu, chief executive at Indian conglomerate Mahindra, said it was an exciting project but government efficiency targets are “idealistic and might lead to compromise on consumer needs and safety.”
Others are more optimistic.
Reductions in the size and cost of electric vehicles, coupled with rapid technological advances, mean India’s ambitions were “very feasible,” said Bill Hare, CEO of the Berlin-based Climate Analytics consultancy.
Foreign car majors are not ready to bring their electric offerings to India.
Mercedes said it needs a reasonable timeline and improved incentives for motorists — currently a tiny sum that could be withdrawn at any time — to bring in electric cars.
Tesla boss Elon Musk — who in July launched Model 3, a mass-market version of Tesla’s pricier cars — has postponed entry to the Indian market.
But at $35,000, even the cheapest Tesla is out of reach for most Indians. Most of the three million new cars added to India’s roads every year are far cheaper, compact vehicles.
Nissan Motor is test driving its Leaf model to see how it performs on Indian roads and copes with pollution and extreme weather conditions.
That leaves the field wide open for Mahindra, currently the only company selling electric cars in India.
Its hatchback, sedan and van sell in Delhi from $11,000 to $15,000, after a subsidy of $2,300.
The company hopes to sell up to 5,000 units this year, including autorickshaws.
So far it has tied up with cab firms in a handful of cities, logistics firms and start-ups that offer a sharing system of self-driving cars.
“We want to meet India’s challenges,” Babu said.
— AFP
Rickshaws to jump start India’s all-electric drive
Rickshaws to jump start India’s all-electric drive
UAE’s residential real estate market to see softer home sales
- Moody’s sees mild softening of prices over the next 12 - 8 months as rising completions add supply
RIYADH: The UAE’s residential real estate market is expected to see a modest decline in developer sales and a mild softening of prices over the next 12 to 18 months as rising completions add supply, Moody’s said.
Despite near-term easing, the credit ratings agency noted that developers are supported by strong revenue backlogs and solid financial positions, while regulatory measures have reduced banks’ exposure to the construction and property sectors, helping to preserve robust solvency and liquidity buffers across the financial system.
The broader trend is reflected in the UAE’s real estate market, which recorded a strong performance during the first three quarters of 2025, according to Markaz.
In Dubai, transaction values increased 28.3 percent year on year to 554.1 billion Emirati dirhams ($150.88 billion), while Abu Dhabi recorded total sales of 58 billion dirhams, up 75.8 percent year on year. The number of transactions in Abu Dhabi rose 42.3 percent to 15,800.
The report said: “After five years of extraordinary growth in the UAE’s residential real estate market, particularly in Dubai, we expect developer sales to decline modestly and some price softening over the next 12 to 18 months as rising completions add supply.
“From 2026 to 2028, around 180,000 new units will be completed in Dubai, a significant increase from prior years that is likely to weigh on demand and slow price growth.
“However, fundamentals remain supportive, underpinned by continued population growth and an influx of high-net-worth individuals. Rated developers’ credit quality will remain resilient, supported by strong revenue backlogs, front-loaded payment plans and solid financial positions.”
Munir Al-Daraawi, founder and CEO of Dubai-based Orla Properties, told Arab News the Moody’s report underscores what the firm is seeing on the ground, namely “a market that is successfully transitioning from a period of extraordinary growth to one of sustainable stability.”
He added: “While a mild softening of prices and a modest decline in sales are anticipated over the next 12 to 18 months, these are natural adjustments for a maturing global hub like Dubai.”
Al-Daraawi believes the the projected delivery of 180,000 units between 2026 and 2028 is not a cause for concern, but “a reflection of the UAE’s long-term appeal to high-net-worth individuals and a growing population.”
The CEO added: “The report rightly points out that fundamentals remain supportive, underpinned by Dubai’s 2040 Urban Master Plan and a significant influx of global talent.”
He went on to note that the resilience of the sector is further bolstered by the solid financial positions of developers and the strong regulatory measures that have shielded the banking sector from excessive exposure.
“This creates a robust ecosystem where credit quality remains high, even as we navigate a more competitive landscape. For boutique and luxury-focused developers, the current environment emphasizes the importance of quality, execution, and strategic capital allocation — factors that will continue to define the UAE’s real estate success story,” said Al-Daraawi.
The current environment emphasizes the importance of quality, execution, and strategic capital allocation.
Munir Al-Daraawi, Founder and CEO of Orla Properties
Riad Gohar, co-founder and CEO of BlackOak Real Estate, told Arab News that while Moody’s is correct to say that supply is rising, the conclusion of a broad slowdown ignores the structure of this current economic cycle.
He added: “First, this is not a debt-fueled market. Around 83 percent of Dubai residential transactions in 2024 and 2025 were non-mortgaged. That means the market is equity-driven, not credit-driven. When cycles are not built on leverage, corrections are typically shallow and segmented, not systemic. “
He added that the macroeconomic backdrop is stronger than in past cycles, driven by sustained non-oil gross domestic product increase, structural reforms, population growth, and capital inflows aligned with long-term national plans.
“Demand is not purely speculative; it is driven by migration, business formation, and wealth relocation,” the CEO said.
“Third, prime vs. non-prime must be separated. Any pressure from increased completions is more likely to affect marginal locations, not established prime areas supported by global HNWI inflows. Historically, prime assets in Dubai have shown resilience even during broader market pauses,” Gohar added.
He continued to clarify that for smaller developers, some may feel margin compression if sales moderate, but this becomes a consolidation phase, not a systemic risk.
“Banks’ real estate exposure has already declined to around 12 percent of total loans — from 19 percent in 2021 — and NPLs (non-performing loans) are low at 2.9 percent, meaning financial contagion risk is limited. Regulatory escrow structures and stricter oversight further reduce spillover,” the CEO said.
“We are in a capital-rich, cash-driven cycle, regulated market with strong GDP and population growth. If anything, weaker fringe players exiting would strengthen the core not destabilize it,” he said.
The Moody’s report highlighted that while most developers it rates will generate “substantial excess cash” over the next two to three years, there will be fewer opportunities to make significant investments, especially within the Dubai real estate market.
As well as prompting a shift toward corporate governance and, in particular, how developers deploy their rising liquidity, some firms are looking to diversify beyond their core business models.
“For instance, Binghatti has recently launched its first master-planned villa community, marking a departure from its historical focus on single-plot high-rise developments, as demand for villas continues to outperform that for apartments,” said the report.
It continued: “Others are looking beyond Dubai and the UAE for growth, whether through geographic diversification or expansion into unrelated sectors.
“For example, Damac’s owner, Hussain Sajwani, has announced significant planned investments in data center development across the US and Europe.
“Emaar continues to develop actively in Egypt and India and is evaluating potential entry into China and the US. Aldar has started development projects in the UK and Egypt, while Arada has begun building in Australia and the UK and Sobha is expanding into the US.”
