The UAE’s used car market is expected to experience substantial growth in the coming years, according to a report by AutoData, a leading provider of data and analytics for the automotive industry. The report projects a market value of $48. 15 billion by 2030, reflecting a compound annual growth rate (CAGR) of 11. 5% over the eight-year period. This significant increase suggests a thriving pre-owned vehicle sector in the UAE.
The report sheds light on consumer preferences within the UAE’s used car market. Interestingly, the data reveals a strong demand for vehicles within the AED 20, 000 (USD 5, 445) to AED 30, 000 (USD 8, 168) price range. This segment accounts for the majority of user searches on AutoData’s Vehicle Report platform, followed by vehicles priced between AED 50, 000 (USD 13, 613) and AED 80, 000 (USD 21, 779) and those exceeding AED 150, 000 (USD 40, 843). This trend indicates a preference for moderately priced cars among UAE used car buyers.
Furthermore, the report highlights the dominance of GCC-specification vehicles in the market. According to AutoData’s findings, nearly three-quarters (74%) of users on their platform specifically search for GCC-spec cars. GCC, or Gulf Cooperation Council, refers to a regional standard that ensures vehicles meet specific safety and quality criteria. This preference suggests that UAE car buyers prioritize reliability and safety features when purchasing pre-owned vehicles.
The data from AutoData aligns with broader industry trends observed in the UAE. The economic growth and increasing disposable income of the population are contributing factors to the rising demand for automobiles, both new and used. Additionally, a growing focus on sustainability and environmental concerns is leading some consumers to consider used cars as a more eco-friendly option compared to purchasing new vehicles.
This anticipated growth in the UAE’s used car market presents exciting opportunities for various players in the automotive sector. Online marketplaces, used car dealerships, and service providers can leverage this trend by offering innovative solutions and catering to the specific needs of used car buyers. By ensuring transparency, providing accurate vehicle information, and offering a seamless buying experience, these businesses can capitalize on the burgeoning pre-owned car market in the UAE.