The Government of the United Arab Emirates supports the automotive sector as a key revenue generator. As a result, it is one of the fastest-growing automobile markets in the Middle East region.
The UAE passenger car vehicles on road are expected to reach 3 million units by 2022, making it one of the largest markets in the world. This is due to the increasing demand for cars in the country, as well as the government's focus on improving infrastructure and transportation. With more people opting for personal vehicles, this number is only set to increase in the coming years. The UAE is also investing heavily in smart technologies that will make driving easier and safer. As a result, more people are likely to buy cars in order to experience a better quality of life.
By 2022, the UAE is expected to have around 3 million passenger car vehicles on its roads. This number is projected to grow significantly in the coming years, as the country continues to invest in infrastructure and transportation projects. The increasing number of cars on the roads will bring many opportunities for businesses and individuals alike. It will also create more jobs and open up new markets for products and services related to transportation. Moreover, it will help reduce traffic congestion and pollution levels in major cities across the UAE.
The number of passenger car vehicles on the roads of UAE is expected to reach 3 million units by 2022. This is a significant increase from the current figure of 2.2 million vehicles, and it reflects the growing demand for cars in the country.
The UAE has seen an influx of people from all over the world, and this has created an increased demand for cars. With more people coming into the country, there is a need for more vehicles to accommodate them. This in turn has led to an increase in car sales, which has been further boosted by government initiatives such as free parking spaces and tax incentives on certain types of cars.
The increasing number of passenger car vehicles on UAE roads will have a positive impact on the local economy as well as providing convenience to travelers and commuters alike. With this growth comes new opportunities for businesses that can capitalize on this trend.
According to recent reports, the number of passenger car vehicles on the roads in the United Arab Emirates (UAE) is expected to reach around 3 million units in 2022. This growth is a result of an increase in demand for cars due to the country’s growing population and economy. The UAE has seen a steady rise in vehicle ownership over the past decade, with more people wanting access to personal transportation. With this increase, comes a need for better infrastructure and safety measures to ensure that roads are safe and efficient.
After the 2008 financial crisis, the UAE automotive market gradually began to recover. There was outstanding growth between late 2010 to early 2015. This growth was disrupted in the second half of 2015 as oil revenue declined. The situation turned for the better in 2019, but soon Covid pandemic hit the country affecting the sales of the automobile. While the sales of new cars dropped by almost 50%, the market for used and pre-owned cars saw a rise in sales. With the air of uncertainty in the economic sector, earnings dipped and consumers preferred to buy second-hand cars. Many auto manufacturing companies were forced to halt the production of new cars, resulting in a surge in used car sales in the market. The period after the pandemic saw a quick rise in the sales of new cars.
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With this rise in the purchase of new vehicles, Japanese automobile brands continue to thrive in UAE. According to a report by Dubai Customs, Japan is the UAE’s top automobile trading partner. Toyota, one of the largest automobile manufacturers in the world has a market share of 30.9% in UAE. Japanese brands traditionally regarded as more dependable than their European and American counterparts–are the country’s best sellers. Brands like Toyota, a consistent market leader from 2015 to 2021, Nissan, and Mitsubishi dominate in the UAE market. Toyota models like Hilux, Land Cruiser 200, Prado, Corolla, Yaris, and Camry continue to drive the brand’s sales in UAE.
Japanese brands have great resale value and with the increase in purchase of used vehicles, more people are choosing Japanese brands. Other reasons that constitute for the popularity of Japanese brands include the easy availability of spare parts at cheap rates, and low maintenance of these cars. With safety and appearance, consumers also look for quality and endurance, this is why the percentage of SUVs in the UAE is relatively high compared to other countries in the world.
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