Gurugram, India, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Key Findings
- The onset of COVID-19 positively contributed to the revival of the used car market in UAE post an initial contraction because of supply chain disruption and falling per capita disposable income due to physical restrictions imposed. As consumers are more concerned about their health and hygiene, there exist an increased perception towards ownership of private vehicles.
- Weaker economic sentiment and financial constraints followed by the advent of COVID-19 is contributing to the growth of used car market in UAE as consumers are preferring affordable pre-owned vehicles rather than spending hefty sums on purchasing a new car.
- Large number of expatriate population in UAE will continue to act as a major growth driver of this market as these expats prefer an affordable private transportation medium for their short period of stay rather than committing in purchasing a new car for longer duration.
Increased Awareness on Health and Hygiene: With the advent of COVID-19, consumers were witnessed to be more concerned on maintaining personal health and hygiene. Therefore, they are preferring the option of private transportation rather than availing public transport system. The change in consumer's behavior and preference is expected to act as an opportunity for the used car market in UAE. Due to weaker economic sentiment and financial constraint followed by the aftermath of COVID-19, consumers are not willing to spend a huge amount in buying new cars rather they are preferring to buy affordable used cars which helps them in maintaining their health by spending less. Therefore, the future prospect of the industry looks strong wherein used cars players in the market could utilize this opportunity to integrate the market.
Perception of Digital Medium: Consumers buying preference has significantly changed with the onset of COVID-19. From buying groceries to online shopping, consumers are much more adaptive in utilizing digital medium for buying and selling products. Coupled with that internet penetration rate in UAE has reasoned to contribute in increasing the visibility of online marketplace and classified ecosystem in UAE for providing better opportunities to the customer to conduct proper research before delving into buying an used car product. In recent times even the dealers which have brick and mortar presence rather than an online visibility, have started listing their used car fleet in classified websites and online marketplace for better reach to the customers. Strengthening the online ecosystem of the used car domain in UAE will be the key determinant for the growth of this market in coming years.
Large Number of Expatriate Population: As of July 2021, it is estimated that expat population in UAE constitutes 88.6% of the overall population. Mostly expats in UAE are living for a specific duration of time till their employment contract expires. Due to this nature, these expats prefer buying a pre-owned vehicle rather than spending huge sum of money in buying a brand-new car which has resulted in increased demand of used cars over the years. Affordability plays a deterministic role in choosing a used car over a new car. In coming years, the expat population in UAE is estimated to constitute 90% of the overall population which will keep the demand prospect of used cars at an all-time high.
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Contribution of UAE's Shipping Industry to Export/Import Sales: The Jebel Ali Port in UAE operated by DP world is the largest port in middle-east. An efficient shipping industry of UAE contributes in maintaining a steady level of export and import of used cars with ease. The export prospect of used cars in UAE will act as a major determinant in the development of the used car market in coming years. Dubai is the major export hub in UAE in terms of used cars. Mostly, used cars from UAE are exported to the MENA region (Middle East and Northern African Region). As long as the demand of used cars in MENA region stays relevant, used cars are subjected to record tremendous growth in coming years due to export opportunities which contributes in generating revenue.
Value Added Services: Used car market players in UAE, in an effort to differentiate its offerings are providing a number of value-added services along with the used cars which serve as one of the major competition parameter in UAE. These value-added services include warranty, financing options, accessories and others. Many dealerships have tie ups with loan providing financing companies. These value-added services have a placebo effect on the assuring quality of the car in the mind of customers. Thus, help in creating a positive brand perception in front of the customers. These value-added services also prompt the customers to pay a marginally more while buying through a dealership. This trend will help in consolidating the market share of players selling via B2B/B2C channel in the market as players selling via C2C sales channel does not offer a wide range of necessary value-added services such as transfer of ownership, tax registration and payment, quality check and assurance and others. Thus, in the future value-added service offerings would play a pivotal role in developing the demand ecosystem of used car market.
Expo 2020: In recent years, UAE has been initializing the process of shifting away from oil dependence and enhancing its economic capability to develop others sectors, such as tourism, IT, pharmaceuticals, automotive, real estate etc. Therefore Expo 2020 is seen as a platform which will contribute to major investment opportunities in diversified sector of UAE especially Dubai. Automotive sectors in UAE is a growing industry wherein most of the cars are imported from Japan, Germany, America, and South Korea among others. Therefore, expo 2020 will act as a platform to develop and attract investment in the automotive sectors coupled with efficient technological solution, which will change the ecosystem of the industry. With the structural change in automotive sector, there is a greater possibility to enhance the capability of used car market in Dubai wherein players in coming years would look forward to adapt to effective digital solutions to attract consumers and participate in growing the used car market in UAE.
The report titled "UAE Used Car and Auto Classified Market Outlook to 2025" by Ken Research suggested that the used car market in UAE is expected to grow further in the near future, with the increased awareness on health and hygiene followed by the onset of COVID-19, thus showcasing a change in consumer preference from availing public transport to private transportation medium. Large number of expatriate population along with export prospects of used car in UAE will be major growth drivers for the market in coming years. The market is expected to register a positive CAGR of 16.6% in terms of revenue during the forecast period of CY'20-CY'25.
Key Segments Covered in UAE Used Car Market:-
Used and New Cars Re-Export by Country
- UAE Free Zone
- Saudi Arabia
- Iraq
- China
- Oman
Used and New Cars Export by Country
- UAE Free Zone
- Mali
- Sudan
- Somalia
- Congo
By Type of Car
- SUV/Crossover
- Sedan
- Coupe
- Hatchback
- Pickup Truck
- Sports Car
- Convertible
- Other (Utility Truck, Van, Wagon etc.)
By Type of Manufacturer on the basis of Region
- Japanese
- German
- American
- Korean
- British
By Region
- Dubai
- Sharjah
- Abu Dhabi
- Umm Al Quwain
- Ras Al Khaimah
- Fujairah
- Ajman
By Sales Channel
- Online Marketplace Players including Classified Channel
- B2B/B2C Dealers
- C2C – (Word of Mouth)
Key Target Audience:-
- Used Car Dealerships
- Classified Used Car Retailing Websites
- Online Marketplace Websites dealing in Used Car
- Auction Players
- Used Car Financing Companies
- Government Bodies
- Investors and Venture Capital Firms
- Used Car Associations
- Used Car Buyers
- Used Car Sellers
Time Period Captured in the Report:-
- Historical Period: 2015-2020
- Forecast Period: 2020-2025
Used Car Companies in UAE:
- Dealerships
- Al-Naboodah Automobiles
- Arabian Automobiles
- Al-Tayer Motors LLC
- Al-Ghandi Auto GroupOnline
- Marketplace Players
- Al-Futtaim Automall
- Gargash Motors and General Trading LLC
- Alba Trading FZC
- Cars24
- The Elite Cars
- Swaidan Motors
- Galdari Pre Owned
- Autotrust
- SellAnyCar
- Car Switch
- Classified Companies
- Dubizzle
- Yalla Motor
- Dubicars
- Carmudi
Key Topics Covered in the Report:-
- Value Chain Analysis of UAE Used Car Market
- UAE Used Car Market Ecosystem
- Customer Profile of UAE Used Car Market
- UAE Used Car Market Size, 2015-2020
- UAE Used Car Market Overview
- UAE Used Car Market Size by Transaction Value and by Sales Volume, 2015-2020
- UAE Used and New Cars Re-Export by Value and by Country, 2015-2020
- UAE Used and New Cars Export by Value and by Country, 2015-2020
- UAE Used Car Market Segmentation, 2020 (by type, manufacturer, sales channel, region age)
- Competitive Landscape of UAE Used Car Market, 2020
- Parameters of Competition of UAE Used Car Market
- Market Share of UAE Used Car Market Players – (Dealership Network, Online Marketplace Players and Classified Companies)
- Company Profiles of Arabian Automobiles, Al-Naboodah, Al-Tayer Group, Dubizzle, Yalla Motor, DubiCars, Carmudi, Al-Futtaim Automall, Elite Cars, SellAnyCar, and Car Switch
- Trends and Developments in UAE Used Car Market
- Growth Drivers of UAE Used Car Market
- Challenges and Restraints in UAE Used Car Market
- SWOT Analysis of UAE Used of Market
- Porter 5 Forces Analysis of UAE Used Car Market
- Government Regulations in UAE Used Car Market
- Recent Developments in UAE Used Car Market
- Channels Used for Selling Pre-Owned Cars in UAE – (Dealerships, Classifieds and Online Marketplace)
- Impact of COVID-19 on UAE Used Car Market
- UAE Used Car Market Future Outlook and Projections, 2020-2025E
- Analyst Recommendations
- Macro-Economic Factors Affecting Used Car Market in UAE
- Directory of Automotive Dealers in Luxury Segment in UAE
- UAE Used Car Market
- Re-Export of Used and New Cars
- Export of Used and New Cars
- Type of Manufacturers on the basis of Region
- Competition Scenario in UAE Used Car Market
- Market Share of Dealership Network
- Market Share of Online Marketplace Players
- Market Share of Classified Companies
- Company Profiles of Major Dealers
- Company Profiles of Major Online Marketplace Players
- UAE Used Car Market Analysis
- COVID-19 Impact of UAE Used Car Market
- UAE Used Car Market Future Outlook and Projections
- Macro-Economic Factors Affecting Used Car Market in UAE
- Al-Futtaim Automall Used Car and Auto Classified Market Size
- Alba Trading FZC Used Car and Auto Classified Market Sales
- Cars24 Used Car and Auto Classified Market Size
- The Elite Cars Used Car and Auto Classified Market Sales
- Swaidan Motors Used Car and Auto Classified Market Size
- Galdari Pre Owned Used Car and Auto Classified Market Revenue
- Autotrust Used Car and Auto Classified Market Revenue
- SellAnyCar Used Car and Auto Classified Market Size
- Car Switch Used Car and Auto Classified Market Sales
- Classified Companies Used Car and Auto Classified Market Revenue
- Dubizzle Used Car and Auto Classified Market Sales
- Yalla Motor Used Car and Auto Classified Market Size
- Dubicars Used Car and Auto Classified Market Revenue
- Carmudi Used Car and Auto Classified Market Size
For More Information On the research report, refer to below link:-
UAE Used Car and Auto Classified Market
Related Reports:-
UAE Car Rental market has increased at a negative CAGR of ~ 0.6% during 2015-2020, mainly due to the impact of taxation introduced by the government coupled with the less number of cars rented due the lockdown imposed in the country owing to the global pandemic Covid-19. However, an expected revival in tourism, strong vaccination rates, increased technological upgradation for both suppliers and customers, favorable government initiatives in the form of various events such as Expo 2020 and Abu Dhabi Grand Prix, and favorable changes in customer preference towards personalized vehicles are all factors that are expected to help the UAE Car Rental Market grow in the forthcoming years.
EVs are slowly gaining traction with less than 0.5% of vehicles deployed as PHEVs in Saudi Arabia. Efforts to create a market for EVs are consistent with the Saudi Crown Prince Muhammed bin Salman's Vision 2030 plan, which aims to reduce the country's dependence on oil, diversify the economy, and implement a range of social reforms. The EV infrastructure in Saudi Arabia is still lagging behind as the government is yet to install charging stations in public areas. Several gaps in the EV market such as a limited hybrid car range, high prices, insufficient battery life and an underdeveloped charging ecosystem are yet to be filled. Fleet operators need to create and manage vehicle service infrastructure and charging infrastructure on their own due to limited availability of existing set-ups in public domain.
Malaysia's Used Car sector is in the late growth phase, having grown at a CAGR of ~1% during 2015-2020. Increasing demand for private vehicles, increasing purchasing power, easy availability of finance, increased govt. incentives to ensure the sale of new cars are the main reasons behind positive growth in used car revenue. Other major drivers include drop-in use of public transport due to the pandemic and emergence of online players which have made the overall process of selling and buying used cars smoothly, thus boosting sales.
Philippines Used Car market is in its growth phase, having grown at a CAGR of 7.4% (by value in PHP Billion) during 2015-2020. A surge in the demand of private cars, coupled with convenient financing facilities, increasing per capita income, increased internet penetration and enhanced digitalization of the used cars space have been the salient factors leading to the growth of the used cars market in the Philippines.
Thailand Used Car sector is in the maturity phase, growing at a CAGR of 1.8% during 2014-2020. Increasing demand for private vehicles, reduction in purchasing power, easy availability of finance, and increasing VAT on new cars are the main reasons behind positive growth in used car sales revenue. Another major driver is the drop in use of public transport due to the pandemic and need for private vehicle.
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