The
report titled “UAE Used Car and Auto Classified Market Outlook to
2022 – By Revenue Streams (Commission, Paid Listings, Banner Advertisement), By
Export and Domestic Sales”
provides a comprehensive analysis on the UAE used car dealership and
auto classified companies. The report covers various aspects including used car
sales volume, transaction value and net income of dealers and classifieds; market
segmentation by region (Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Ras Al
Khaimah, Fujairah and Ajman), by Sales channel (B2B/B2C Dealership, Classified,
C2C word of mouth) and by revenue streams, growth drivers, challenges, key
regulations, market share of major dealers and classified companies, future
outlook and analyst recommendation.
This report
will help the readers to identify the ongoing trends in the industry and
anticipated growth in future depending upon changing industry dynamics in
coming years. The report is useful for UAE car dealerships, auto and horizontal
classified portals, potential entrants and other stakeholders to align their
market centric strategies according to ongoing and expected trends in the
future.
Market Size
The
market of used cars in UAE is in the maturity stage and has grown constantly in
the last few years. The market size by transaction value has registered a single
digit growth in the last 5 year with an increase in the volume and average
price of the pre-owned cars and reduction in average car ownership period. The
market has slowed down after 2015 as the fall in oil prices had an adverse
effect on the overall economy of UAE resulting in decrease in demand for cars. Improving
quality of used cars, large number of expatriates, demand for new and luxury
cars along with improving economic condition are some key growth drivers in the
market. There are a number of challenges that exist in the market that needs to
be addressed including price discrepancy, lack of standardization and others.
The passion for cars in the country is one of the biggest reasons that more dealers
are entering the market. Manufactured certified cars are gaining foothold in
the market as they provide reliable quality of cars.
Market Segmentation
Majority
of the pre-owned cars are exported outside UAE to nearby GCC and African
nations. Domestically, B2B and B2C dealers contributed majority to the sales
channel apart from sales via classified and C2C word of mouth channel.
Out of
pre-owned car sales volume, Crossover contributed to the majority sales followed
by luxury SUV, full size sedan and premium sedans. SUV are one of the most
common types of cars that are sold in the market. Luxury SUV, Full Size Sedan,
Premium Sedan, Luxury Sedan, Full Size SUV, Convertible, Super Car, Coupe,
Entry Level Sedan, HatchBack, Luxury Hatchback, Pick-Up Trucks are some other
popular segments.
The
Japanese manufactured cars enjoy the market leadership in used car sales volume
followed by German manufactured cars and American manufactured cars. Demand for
cars from other parts of the world is much lower.
The country
is divided into seven emirates (Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Ras
Al Khaimah, Fujairah and Ajman). Dubai has the highest market share in sales
volume followed by Sharjah and Abu Dhabi.
Competition Scenario
The
competition in the market is highly fragmented as there are many players in the
market. Most of the big dealerships use both classified portals and Word of
mouth channels for promotion. There are more than 400 dealerships in the
market. Al-Futtaim, Al- Naboodah, Gargash motors and Elite cars are some of the
biggest players in the market. Classified
portals have grown in number and currently there are more than 40 classified
portals in the market. Dubizzle, Carmudi, Alba Cars and Yalla motors are some
of the biggest classified players in the market. Sellanycar and Al Futtaim are
the market leaders with majority of the market share in the region. Mostly car
dealership exist in clusters however the big players in the market have
expanded outside their clusters in order to reach out to the customers easily.
The companies compete with each others on the basis of prices; value added
service, brand reputation and others. Many companies are trying to attract the
customers through sales promotion offering discounts, inspection reports and
value added services. The car dealers generate revenue by buying a car at low
price, refurbishing the car and selling the car at markup prices. The
dealerships are expanding their retail space as the aesthetics and decorum of
the retail outlet are few parameters which the dealerships are expected to use
to differentiate themselves from the competitors.
Future Outlook
The
market size by transaction value is expected to grow at a faster pace at double
digit growth rate as compared to volume growth in next 5 years. Rise in demand
for high value cars or super cars is the key reason for higher rise in revenue
as compared to volume. Revival of the country’s economy, improving quality of
cars, increasing competition and declining age of used cars are some of the
factors which will help the market to grow in the future both in terms of value
and volume. A number of operational and marketing changes are expected to
happen in the market as the companies are becoming more customers centric. The
domestic market sales are expected to grow at high rate as compared to export
sales between 2017 and 2022. Sharjahis is expected to register highest growth
in volume sales followed by Dubai and Abu Dhabi, the demand in other emirates is
expected remain constant.
Key Segments Covered:-
By Type of Regions:- Dubai, Sharjah,
Abudhabi, Umm Al Quwain, Ras Al Khaimah, Fujairah, Ajman
By Sales Channel: B2B/B2C
Dealers, C2C Classifieds
By Type of Cars:- Crossover,
Luxury SUV, Full Size Sedan, Premium Sedan, Luxury Sedan, Full Size SUV, Convertible,
Super Car, Coupe, Entry Level Sedan, Hatchback, Luxury Hatchback, Pick-Up
Trucks
Key Target Audience:-
Used Cars
Dealerships
Classified
Used Car Retailing Websites
Used Car
Buyers
Used car
Sellers
Time Period Captured in the Report:
2012-2017
– Historical Period
2017-2022
– Future Forecast
Companies Covered:
Used Car Dealerships:
Sellanycar.com, Al-Futtaim, Arabian Automobiles, Al Naboodah,
Elite Cars, Al Tayar, Carswitch.com.
Classified Used Car
Retailing Websites:- Carmudi, Yalla Motors, Dubizzle
Key
Topics Covered in the Report:-
UAE Used
Car Market Value Chain Analysis
UAE Used
Car Market Size, 2012 – 2017
UAE Used
CAR MARKET Segmentation
SWOT
Analysis For UAE Used Car MarketIssues and Challenges in Switzerland Telemedicine
Market
Challenges
and Restraints in UAE Used Car Market
Company
Profiles of Al-Futtaim group, Arabian Automobiles, AL Tayer Group , Elite Cars, Al-Naboodah, Dubizzle.com,
SellAnyCar.com, Carmudi, Yalla Motors
Porter Five Forces Analysis of UAE Used Car Market
Competitive landscape in UAE used car market
Analyst Recommendations
Macroeconomic Factors in UAE used car market
For more information on the research
report, refer to below link:
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
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