Due to the strong act of the UAE economy in the latest three years, Thecountry’s auto market recorded more than 27 per cent year- on-year growth in the first two months of 2013 following the financial crisis with expectations to record sales of 380,000 vehicles in 2013 compared to 305,000 vehicles in 2012 and 243,000 in 2011.
According to a report issued by Business Monitor International (BMI), the year-on-year growth in new vehicle sales in the UAE market is estimated at 27 per cent.
“We forecast the market to grow by an average of nearly 9 per cent year on year during our five-year forecast period to 2017. The most potent factors driving this growth will be favourable macroeconomic conditions and household spending, increased access to vehicle financing and the migration from the neighbouring states,” BMI said.
In the long term, the new vehicles segment will also receive some support from the growing regulations in the used cars segment, which are gaining popularity among budget-conscious consumers, BMI added.
BMI pointed out that there is sufficient growth for carmakers to tap in the new vehicles segment, saying that Japanese manufacturers dominate the UAE automobile market with a significant market share.
“Japan’s Toyota Motor maintained its dominance in the market with its local distributor Al Futtaim Motors posting a record 32 per cent year-on-year increase in vehicle sales during 2012. US-based Ford Motor registered an impressive 55 per cent year-on-year rise in its sales in 2012, after 35 per cent year on year growth in 2011. However, the major outperformer in the new vehicle market was Renault, whose locally-based dealer Arabian Automobiles registered a 67 per cent increase in sales” said BMI.
BMI explained that the UAE ranks amongst top auto markets globally with double digit growth, relying on the buoyant growth in auto market in 2012.
Arabian Automobiles had earlier announced that 2012 saw their share rise by 25 per cent, recording the highest growth rates in the past five years.
Al-Futtaim Motors Toyota had also pointed out that their share of the market in 2012 has been very competitive, and that they had seen a strong growth in retail, SME and large corporate channels.
