Officials at car agencies revealed changes witnessed in the vehicle trade and supply market during the year 2024, which contributed to reshaping the market shares in the sector.
They pointed out to “Emirates Today” the rising shares of both electric vehicles and brands of Asian origin, specifically “Chinese”.
The head of the car dealers business group in Dubai, the CEO of Abdul Wahed Al Rostamani Group, Michel Ayat, told Emirates Today: “The local markets witnessed changes during the year 2024, represented by the growth in the shares of electric vehicles, to reach 6% of the total vehicle market in the country, which is… The equivalent of about 18,000 units of electric vehicles sold, according to market studies.
Ayat added: “Studies indicate expectations that this number will rise to 21,600 units over the next year,” pointing out that “Chinese vehicle sales are among the most prominent manifestations of market changes, as Chinese brands have captured more than 12% of UAE market sales.” In 2024, compared to rates that ranged between only 4 and 5% in previous years.
For his part, President of Hyundai and Genesis Emirates, Sulaiman Al-Zaben, said, “The local car markets witnessed, during the past year 2024, several changes, the most prominent of which is the growth in sales of electric and hybrid cars, supported by the expansion of the introduction of new models, which enhanced the growth in demand.” “And providing more diverse price alternatives.”
Al-Zaben expected that these changes would continue during the current year 2025, especially with many companies moving towards greater expansion and introducing more electric and hybrid cars, in addition to the company’s move to launch new environmentally friendly models.
He continued: “The reshaping of the car shares map over the past year came naturally, as a result of the entry of new brands into the local market, and the record high intensity of competition in the sector.”
In the same context, the regional head of public relations and communication for the Omoda and Jayco car brands, Lucy Aziz, agreed that 2024 witnessed many market changes in the automotive sector, most notably the growth in the shares of electric vehicles, the unprecedented increase in competitive intensity, and the growth in the shares of Chinese cars. Market studies revealed that its sales share will reach about 13% of the sector’s total sales in 2024.
She confirmed that “the increase in the share of Chinese cars increased the percentage of Asian-origin vehicles taking over the car markets, with their joining of Korean and Japanese brands, so that overall Asian-origin brands constitute larger shares compared to other vehicle brands in the local market.” It is expected that these new variants will continue at greater and clearer rates in the automobile markets during the current year 2025, supported by the expansion of introducing more electric and hybrid vehicles to the markets.
For his part, Marketing Director at Al-Shaali Motor Trading Group, Salil Khalfawi, confirmed the growth in demand for electric and hybrid vehicles in the local market, supported by the introduction of more new models, in addition to the increased competitiveness of offers between agencies, and the growth in the shares of Chinese and Asian-origin cars in general. . He added: “Current market indicators support expectations of growth in car market sales during the year 2025, in a way that keeps pace with the rise in consumer demand and improved purchasing power.”
“Electrician” and “Chinese”
Reports from the global “Fox Tomov” platform, which specializes in market studies for car sales, revealed that vehicle sales in the UAE, during the first nine months of last year, reached 235,610 new cars, while the sales map witnessed changes, most notably the solutions of a Chinese brand for vehicles. In fifth place among the five best-selling car brands in the country, with sales reaching 9,169 vehicles, while an electric car brand was among the 10 best-selling brands, with sales reaching 6,751. Vehicle.
Market estimates
A recent study by the Mordor Intelligence Research Foundation revealed that estimates of the size of the hybrid and electric car market in the UAE amounted to $1.34 billion during the year 2024, with expectations that it will reach $5.19 billion by 2029, with a compound annual growth rate of 31.1% during the expected period of 2024 to 2029.
In turn, a study by the “Marketing Advisors” market research organization showed that estimates of the growth of the electric vehicle market in the UAE amount to about 28.5% in the period between 2024-2030 (at a compound annual rate).
As for PwC Professional Services, it expects the share of electric vehicles in the UAE to increase by more than 15%, or about 58,000 vehicles, of new passenger car and light commercial vehicle sales by 2030, and the share to rise to 25% by 2035.
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