The Electric Vehicle Innovation Summit (EVIS), the MENA region's first and largest Electric Vehicle Exhibition, was successfully held at the Abu Dhabi National Exhibition Centre (ADNEC) in late May of 2023. The event brought over 5,000 professionals representing leading companies in the EV industry, fostering networking opportunities and showcasing the latest technologies.
EVIS 2023 also featured more than 10 panel discussions, 10 keynote presentations, speeches, and thought leadership sessions from the top industry leaders and experts across the global e-mobility value chain.
NaaS (NASDAQ: NAAS), one of the fastest-growing electric vehicle charging service providers in China, successfully made its debut at the exhibition. At the event, NaaS showcased its in-house autonomous charging bot powered by data and AI, along with a comprehensive EV charging product portfolio for both home and commercial use. The offerings ranged form advanced wall charging systems, fast charging stations, to energy storage solutions.
Alex Wu, Co-founder, President and CFO of NaaS was also invited to deliver a keynote speech at EVIS 2023, focusing on the future of E-mobility. During his address, Mr Wu shared his view on the ongoing transition from internal combustion engines (IC) to electric vehicles (EV), and highlighted the differences in EV charging, sales figures, and the EV charging ecosystem among markets such as the US, EU, and China. Moreover, he revealed new insights and how the industry can confront the challenges that hinder EV adoption in his keynote speech.
In light of this promising industry landscape, EqualOcean conducted an interview with Alex Wu, delving into the company's advancements in this specific market and the electric vehicle industry as a whole. Presented below is the edited transcript of the interview.
EqualOcean: Could you provide more details about NaaS' strategy and activities regarding different markets? How does NaaS plan to expand its presence in international markets?
Alex Wu: Certainly. We have identified three key markets for our focus: Europe, the Middle East, and Southeast Asia. Each market presents unique characteristics and requires tailored approaches.
In Europe, where the EV market is mature and the ecosystem is well-developed, our strategy revolves around leveraging existing sales and marketing channels. We are actively exploring potential collaborations with established brands to tap into their brand reputation and distribution networks. This allows us to effectively penetrate the market and reach a wide range of customers.
The Middle East, with its emirate economies, has a relatively lower EV penetration rate. However, the governments in this region are eager to drive the transition towards EVs, recognizing it as an irreversible global trend. So for them, the interest is to find an ecosystem service provider that can give them and share with them the best practices so that they can leap forward to a more mature ecosystem. In our Middle East strategy, we prioritize working closely with investment funds and governments to implement a top-down EV charging service strategy and establish a comprehensive EV charging service ecosystem. Our aim is to share best practices and enable these nations, such as the UAE, Oman, and Saudi Arabia, to rapidly develop a mature EV ecosystem.
Southeast Asia is another different story, characterized by a same low EV penetration rate. In this region, we collaborate closely with major energy companies that play pivotal roles in their respective countries' GDP. These energy companies recognize their responsibility to support the growth of EVs and are motivated to facilitate the transition. Our strategy involves working with them to determine the most effective ways to leverage their existing petrol stations and develop robust charging infrastructure. By integrating EV charging capabilities into these petrol stations, these energy companies can find their own way to transit into the future.
EqualOcean: How does NaaS perceive the development of the Middle East market, and what are your expectations for this market?
Alex Wu: When we consider the overall macro situation, the Middle East stands out as a region that has not been significantly affected by recent political upheavals. It is well-positioned as a hub connecting the East and the West, and its role in facilitating global connections has only strengthened. Over the past few years, we have observed a significant influx of people relocating to Dubai from various parts of the world, contributing to the region's growth.
I visited the Middle East last November, and the landscape was notably different compared to today. Chinese companies have increasingly been venturing into the Middle East, targeting countries like the UAE, Oman, Saudi Arabia, and Qatar. And I think that trend has become even more so over the last couple of months, with business communities and major corporations organizing groups to engage with local investment funds and royal families. It is evident that significant attention and resources have been directed towards this region due to its substantial wealth accumulation in recent years.
And I do think the people that run this part of the world, mainly the royal families and governments, they really understand the key drivers of the economy. They strive to establish strong connections, both in terms of government-to-government relations and business collaborations, with influential entities in Asia. So, if I may give a view of the future, I anticipate that this trend will likely continue and the Middle East will maintain its importance as a strategic partner for Asian forces.
EqualOcean: In terms of the energy transition, what stage do you believe the Abu Dhabi or the entire Middle East market is currently at compared to China?
Alex Wu: In terms of the penetration rate of EVs, it is evident that the Middle East market is currently lagging behind China. However, as I mentioned earlier,
I have strong confidence in the ability of these economies to rapidly adopt and implement EV charging infrastructure. And it will hence address the concerns of where people can charge their vehicles.
I'm personally a big believer in this because I've seen these economies deliver striking results in relatively short periods of time. Therefore, I believe they can probably do this again. While the current penetration rate may not be high, I believe that within the next two to three years, we will witness substantial infrastructure development supported by the government. This, in turn, will contribute to a notable surge in EV adoption throughout the region.
EqualOcean: What advantages do Chinese companies like NaaS have when expanding overseas into markets like the UAE?
Alex Wu: NaaS, as an ecosystem provider, possesses a range of advantages when venturing into overseas markets like the UAE. We offer a comprehensive suite of services, including hardware, software development, operating systems for chargers, digital systems for application development, and integration with payment gateways, among others. Our expertise extends to design architecture and operational management. Essentially, we have the capability to handle all aspects of an EV charging ecosystem.
With over 575,000 chargers connected, 55,000 charging stations covered, and a customer base of 2.54 million new energy vehicle owners across 358 cities, we have demonstrated our ability to deliver at scale. The charging volume transacted through our network reached 2,753 GWh by the end of 2022, with 1,023 GWh in the first quarter of 2023 alone.
Based on our achievements in China, we are confident in our ability to replicate this success in the Middle East, specifically in the UAE. The complexity of the ecosystem in the Middle East is significantly lower than in China, making it an opportune market for us to showcase our full range of capabilities.
Furthermore, our commitment to sustainability is a key advantage. By the end of 2022, our efforts resulted in a reduction of 1.84 million tons of carbon emissions, representing a 106% increase compared to 2021. Looking ahead, our goal is to contribute to a reduction of 1.26% in China's road traffic emissions by 2030, estimated to reach 919 million tons.
In summary, we possess the expertise, experience, and commitment to deliver comprehensive EV charging solutions in overseas markets like the UAE, leveraging our proven capabilities and dedication to sustainable E-mobility.
Earlier this month, NaaS further made a notable debut in Europe with the introduction of its automatic charging robot at the Power2Drive Europe exhibition held in Munich, Germany. At the event, NaaS also showcased its fully digitized charging service platform, along with its hardware offerings designed for both consumer and enterprise applications.
“Europe is obviously a mature market where the EV penetration rate is high and the ecosystem is well developed,” said Allen Dong, NaaS's President of Europe and the Middle East. “It has also fostered favorable market conditions for EVs to thrive in the long term, offering the right opportunity for NaaS to support its growth. Our strategy in the EU is to leverage the existing sales and marketing channels.”