275 thousand cars were sold in the UAE within 10 months

The head of the car dealers business group in Dubai, Michel Ayat, stated that car sales in the UAE markets recorded a record recovery, compared to those of last year, supported by the great momentum in the business and tourism sectors and population growth, expecting that sales during the year 2024 will exceed last year and the previous year.

He pointed out to Emirates Today that car sales during the first 10 months of this year amounted to about 275 thousand cars, which is similar to the total sales throughout last year, which enhances sales growth to greater rates by the end of the current year.

Market indicators

In detail, the head of the car dealers working group in Dubai operating under the umbrella of the Dubai Chamber of Commerce, Michel Ayat, said, “Market indicators for car sales in the country indicate that remarkable record increases in sales have been achieved, compared to their counterparts during the past and previous years,” pointing out that “the rise The positive sales recorded since the beginning of this year are due to several factors, most notably the momentum of business sectors in various fields, population growth, and the recovery of tourism and hospitality fields.”

He explained that “car sales in the UAE markets reached estimates of about 275 thousand cars during the first 10 months of this year, which is the same total car sales throughout last year, which supports achieving large record sales of cars by the end of this year, according to current market estimates, especially With an increase in sales during the periods before the end of the year, which witnesses an increase in competitive offers.”

Ayat expected that “sales for the automobile market during the current year will exceed the numbers recorded in the past and previous years, and will converge with their counterparts before the pandemic, which indicates the extent of positive growth recorded by the automobile sector in the country, in terms of the rapid return to growth at large rates.”

Influencing factors

Ayat added, “There are several influential factors that pushed the automobile sector to grow at significant rates, the most prominent of which is the remarkable momentum in the business sectors, which raised the rates of consumer spending for customers and the sales of the commercial departments of companies, which was reflected in the total sales in the markets.”

He explained that “population growth in the country is one of the factors that has a clear impact on the sector as well, especially with the emergence of many new real estate and residential complexes and projects, and attracting a large number of investors and residents from all over the world to live in the country, and benefit from the quality of life and advantages of residence in the Emirates, which is “This has increased the purchase of cars for various purposes.”

Ayat pointed out that “the growth of the tourism and hospitality sectors is one of the factors that also influence and support sales, especially with the growth of car sales to companies operating in those sectors or in the car rental sectors,” pointing out that “the significant growth in the local economy was reflected in the car markets and pushed sales to rise.” At significant rates, whether during the current year or expected sales next year.

Market variables

Ayat said, “The largest market shares currently in the automobile sector are directed towards sales of cars that run on fuel or (gasoline), but there are gradual indicators of a shift towards market variables whose features will appear at greater rates in the coming years, to increase the shares of electric cars at greater rates, compared to the current period.” ».

He added, “The market shift in the shares of demand and sales comes with the support of the increasing supply and options of electric vehicles, which will support a gradual decline in prices, allow for more expanded models, and provide options that are appropriate for attracting a larger number of consumers,” adding that “it is expected that they will decline.” “The prices of electric cars will rise by between 20 and 30% over the next 10 years, with increasing competitiveness in that sector.”

He pointed out that “electric vehicles account for 6% of the total vehicle market in the country, which is equivalent to about 18,000 units of electric vehicles sold until the end of this year,” noting that “studies indicate expectations that this number will rise to 21,600 units during the year.” “Next.”

The future of the sector

Ayat said, “Green cars, or those characterized by environmentally friendly standards, are the most prominent future trend in the car markets, whether electric or hybrid, or even those that rely on hydrogen, which take a longer time to spread, compared to other previous types, with the continued research and development processes of the manufacturers.” For this type of car.

He stated, “Market studies show that the electric car market in the Emirates will witness significant growth, with a compound annual growth rate of 28.5% until 2028, which indicates that the Emirates is moving at an accelerated rate to expand the use of these vehicles, and towards achieving an adoption rate of electric vehicles exceeding 50%.” % by 2050, especially with the availability of many government initiatives that support this.

He added, “The UAE’s trend to provide integrated infrastructure facilities that are compatible with the spread of electric cars is one of the important factors that supports the large spread of these vehicles and the growth of their uses at greater rates during the coming periods.”

He explained, “The UAE has provided a growing network of charging stations for electric cars in various regions, while working to implement plans based on expanding and increasing the charging networks for these cars, especially in Dubai and Abu Dhabi, while providing private parking lots for electric cars in various shopping centers and service institutions,” adding. “There are more than 400 electric vehicle charging stations across Dubai, with plans to increase this number to 1,000 by 2025, which enhances the infrastructure’s ability to support the rapid adoption of electric vehicles.”

Reducing carbon emissions

The head of the car dealers working group in Dubai, Michel Ayat, said: “Electric vehicles allow reducing carbon emissions by up to 70%, compared to traditional vehicles, which has made the future of the automobile industry in various parts of the world focused on this type of car, and many people are turning to… “Countries around the world will rely more heavily on electric vehicles in the coming years, and gradually reduce reliance on traditional cars.”