UAE Used Car Market, By Sales Channels (B2B/B2C Dealers, Classified, C2C, Word of Mouth), By Type of Sales (Export, Domestic Sales), By Emirates (Dubai, Abu Dhabi, Sharjah, Umm Al Quwain, Ras Al Khaimah, Fujairah, Ajman) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
- Published Date: September 2021
- Report ID: BWC2183
- Available Format: PDF
- Page: 112
Report OverviewUAE used car market is growing at a high CAGR because of the growing emergence of online and authorized platforms of used car sales and buying and the surging demand for used cars being released in the market.
United Arab Emirates (UAE) Used Car Market- Industry Trends & Forecast Report 2027
UAE used car market was worth USD 12.6 billion in 2020 and is further projected to reach USD 18.3 billion by the year 2027, growing at the CAGR of 5.7% during the forecast period. Used cars are increasingly preferred in the UAE due to price competitiveness and good value for money over new cars. Furthermore, the easy accessibility of used cars through online mediums and established dealers are also contributing to the market growth.
Source: BlueWeave Consulting
UAE Used Car Market- Overview
A used car or a secondhand car is a vehicle which has been previously owned or used. These used cars are sold through various channels such as dealers, buy here pay here dealerships, outlets, auctions, rental car companies, private party sales, and so on. Used cars are priced based on their condition and the location. Mechanical condition, appearance, mileage, history of the vehicle are all considered in determining the car’s condition.
UAE Used Car Market Forecast and Trends
Stable Fuel Prices In UAE
The highly volatile prices of fuels such as petrol and diesel act as a restraint for the automobile industry in other countries. However, in the case of the UAE, fuel prices are incredibly stable. UAE was in the list of top 10 oil producers and therefore, 30% of the country’s economy is dependent on oil production and export. This ensures the constant supply of fuel for cars, eventually contributing to the growth of the United Arab Emirates used cars market.
Emergence of Online Dealers and Distributors
One of the main factors influencing the growth of the used cars market in the UAE is the emergence of online used cars distributors. Over the past few years, several leading online distributors have appeared and gained significant traction, including Dubi Cars, YallaMotor, Cars24, and UAECarMarket(.)com.In addition to providing opportunities to sell or buy cars, these channels can also be used for other purposes, such as for pricing, bargaining, and legal services. Such services open significant growth opportunities for the United Arab Emirates used car market.
Increasing Prices of Used Cars
The increasing demand for used cars in the UAE has also created a huge demand and supply gap in the market. As a result, used car prices have risen substantially, acting as a major constraint for the UAE used car market as it defeats the purpose of buying used cars.In several cases, the drivers are paying more than average to purchase second-hand vehicles. This high price of used cars is the result of a shortage of microchips, semiconductors, and other new car inventory, which has directly affected the supply of new cars.
Impact of COVID-19 on UAE Used Car Market
UAE was also shaken by the sudden outbreak of the COVID-19 pandemic, which affected a large number of people.The demand for automobiles witnessed a sharp decline due to economic constraints and dipped purchasing power of the consumers. However, the pandemic gave a boost to the used car market in the UAE. Several reasons contribute to this shift, including the desire to drive privately owned vehicles as opposed to using taxi services due to safety concerns.Furthermore, the disruption of the manufacturing and distribution of new automobiles during the pandemic period has resulted in a surge in the demand for used cars in the UAE, driving the market's growth.
UAE Used Car Market - By Sales Channels
Based on sales channels, the UAE car market is segmented into B2B/B2C dealers, classified, C2C, and word of mouth. The B2B/B2C segment accounts for the largest market share because of the emergence of various licensed used cars dealers, and online platforms specifically designed to meet the requirements of the UAE market. The online platforms in B2B/B2C offer several crucial information such as prices, specifications, reviews, etc., which fuels the growth of the used cars market in the UAE. However, the increasing internet penetration is also influencing the growth of the classified segment.
UAE Used Car Market - By Type of Sales
Based on the type of sales, the UAE car market is segmented into export and domestic sales. The domestic sales segment accounts for the largest market share. According to statistics, around 140,000 used cars are sold domestically and about 85,000 cars are exported every year in the UAE. This growth in domestic used car sales is the result of a high number of temporary and migrant workers in the UAE who are buying old cars to meet their transportation requirements.
UAE Used Car Market - Emirates Insights
Geographically, the UAE Used Car market is segmented into Dubai, Abu Dhabi, Sharjah, Umm Al Quwain, Ras Al Khaimah, Fujairah, and Ajman. Among these, Dubai accounts for the largest market share due to the availability of affordably-priced used cars as compared to other regions. A high number of migrant workers and increasing digital penetration are also contributing to the growth of the used cars market in Dubai. UAE is the second largest automobile market after Dubai, as consumers' preferences are rapidly shifting to affordable vehicles.
Competitive Landscape of The UAE Used Car Market
The leading market players in the UAE Used Car market is SellAnyCar(.)com, Al-Futtaim group, Arabian Automobiles, Al-Naboodah, Elite Cars, Al Tayer Group, Carswitch, Dubizzle.com, Yalla Motors, Carmudi, and other prominent players.
The prevalence of various buying and selling online channels as well as licensed dealers makes the market highly competitive as well as fragmented. To gain a competitive edge over their competitors, companies are increasingly turning to strategies such as mergers, acquisitions, partnerships, and acquisitions.
- In September 2020, GTA Car Buyers, a leading car dealer, announced their new website launch to sell cars in Dubai to attract potential buyers and sellers.
- In February 2020, Dubizzle, a leading classified website, announced the launch of its premium Dubizzle Pro service, which provides buyers and sellers in the UAE with assistance in financing, evaluating, and photographing used cars as well as handling inquiries.
Scope of the Report
Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia
By Sales Channels, By Type of Sales, By Region
SellAnyCar(.)com, Al-Futtaim group, Arabian Automobiles, Al-Naboodah, Elite Cars, Al Tayer Group, Carswitch, Dubizzle.com, Yalla Motors, Carmudi, and other prominent players.
By Sales Channels
- B2B/B2C Dealers
- Word of Mouth
By Type of Sales
- Domestic Sales
- Abu Dhabi
- Umm Al Quwain
- Ras Al Khaimah
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