Early in 2013, the projection for total car sales was an estimated 8%-10%. Toyota itself sold 624,400 vehicles in the UAE during 2012, a 31% increase from the previous year. Historically, Toyota has remained the biggest brand in the UAE for some time, including the Lexus and the Scion brands, the former gaining a 50% increase in sales during 2012 as purchasers became more confident and the industry really hit a growth spurt.
However, in October of 2013, around 65,000 Toyota units sold in the UAE were recalled for a faulty power window switch defect. Included in the recall are the Corolla, Yaris, RAV4 and Sequoia, sold between February 2006 and May 2010, there are two reasons that this might not be too much of a concern for Toyota when it comes to future sales.
One is that UAE car owners tend to sell their cars around three years old, so there’s a chance that not many people are affected. Because of the increase in exports of used vehicles from the UAE to Asian and African countries via the free trade zone in Dubai, there’s a chance that there aren’t many left in the country anyway. The other reason is that luckily, the defect was only in the window function, meaning that there was no mechanical issue making prospective future buyers wary of the brand. Of course, as with all defects, the brand covers any cost of fixing this problem.
Another factor contributing to Toyota’s favor for 2014 is the resale value of these cars’ 2013 models – meaning that if a vehicle has a low depreciation value, like Toyota, buyers are more likely to buy because of the less loss on investment of their purchase. Of the top ten cars with the best resale value, there are technically five (Scion is a Toyota-made brand): the FJ Cruiser, the Tacoma, the 4Runner, the Land Cruiser and the Scion tC.
One final factor that will determine Toyota’s 2014 sales in the UAE is the introduction of the new Corolla. Although the majority of car enthusiasm is centered around high dollar supercars, not compact sedans, not everyone in the UAE has the purchasing power to buy a $100,000 car. Even the taxi companies favor Toyotas because of their low depreciation value, comfort and excellent fuel economy. In terms of decades, Toyota has through thick and thin maintained a high reputation when it comes to longevity of the motor – most people who know about Toyotas know that they can last up to 400,000 miles if they are maintenanced properly. Only time will tell just how successful Toyota will remain in the UAE automobile market.
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