There is no doubt that the whole economic scene in the UAE will change with winning Expo 2020, but how is this going to affect the cars market?
Experts believe that a boom in the two edges of this market, that’s to say luxury cars and economic cars. The fast influx of business people interested in investing in the great opportunity represented by the Expo should create more demand on luxury cars, while the expected increase in the cost of living will increase demand on economy class cars, and revive the used cars market.
This will pose a serious challenge to car makers, who will need to focus on these two categories, on the expense of mid-class cars. Revising the current car market in the UAE reveals a good chance for certain car makers. Luxury car makers are well known to everyone, but what about economy class cars?
Renault
The french maker seems to have an excellent opportunity with the recent release of Dacia models in the UAE under the Renault logo. Dacia Duster, now Renault Duster, has been presenting excellent sales for the past two years, which is expected to increase. The Logan is another example, while Koleos and Safrane (the Middle East version of Latitude) have an excellent chance as luxury cars at affordable prices. Renault Megane and its sedan sister, the Fluence, will of course remain the Brand’s best sellers.
Toyota and Nissan
Yaris and the all new Tiida are expected to show good performance, but their Hyundai and KIA competitors could easily occupy a considerable portion of sales traditionally reserved for these two models.
European Models
European cars will need serious reforms in order to compete, as American cars built in Korea and Latin America are actively becoming a better choice price wise.
