GCC New & Used Car Market Races to AED 4,964.4 Billion by 2028: Fueled by Soaring Population, Rising Incomes, and Green Ambitions - Ken Research

GURUGRAM, India, Feb. 8, 2024 /PRNewswire/ -- Buckle up for a thrilling ride! The GCC New & Used Car Market is revving up for a remarkable journey, projected to reach a colossal AED 4,964.4 billion by 2028. Fueled by a population explosion, surging disposable incomes, and a growing embrace of eco-friendly choices, this dynamic market presents a treasure trove of opportunities for investors and industry players alike. 

Key Statistics: 

• Market Value: Revving from AED 3,643.2 billion in 2023 to AED 4,964.4 billion by 2028 
• CAGR: Zooming ahead at a healthy 6.4% (2023-2028) 
• Population: Gearing up to reach 69 million by 2028 (currently 58 million) 
• Expatriate Population: A significant force driving demand, currently at 36 million 
• Disposable Income: Averaging AED 32,000 annually, fueling consumer spending power 
• Hybrid & Electric Vehicle Sales: Poised for a 150% surge by 2028, reaching 275,000 units annually 

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Regional Powerhouses: 

• Saudi Arabia: The King of the Road, dominating with over 50% market share, driven by economic muscle and strategic initiatives. 
• UAE: A Close Contender, led by booming cities like Dubai and Abu Dhabi. 
• Kuwait, Qatar, & Oman: Each contributing significantly to the overall market growth. 

Shifting Gears: 

• From Showrooms to Screens: The digital revolution transforms the buying experience, with 60% of car buyers relying on online platforms. 
• Going Green: Eco-friendly vehicles gain traction, fueled by regulations, awareness, and infrastructure advancements. Expect a 150% surge in hybrid and electric vehicle sales by 2028. 

Competitive Landscape: 

• Diverse Players: From Al Quoz's impressive sales to Dubai Auto Zone's streamlined setups, the competition is fierce. Each player offers unique strengths, like Souq Al Haraj's used car expertise and Motor World's economy car focus. 
• Winning Strategies: Success hinges on competitive pricing, exceptional customer service, high-quality vehicles, a strong reputation, and embracing technology. 

Deep Dive into Segments: 

• New Car Sales: Saudi Arabia leads the pack with over 50% market share, driven by its strong economy and evolving consumer preferences. Expect SUVs and luxury cars to see the fastest growth. 
• Used Car Transactions: Similar to new car sales, Saudi Arabia enjoys a 50% market share, driven by a thriving resale market and supportive regulations. Sedans and SUVs dominate, with pickup trucks gaining popularity. 

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Fueling the Future: 

• Tech Revolution: Automation, AI, and connected car technologies will reshape the buying and ownership experience. Expect virtual test drives and predictive maintenance. 
• Government Push: Support for electric vehicles and infrastructure development will accelerate sustainable mobility. Look for tax breaks, charging stations, and green financing options. 
• Connecting the Roads: Ongoing investments in roads, ports, and logistics will enhance accessibility and open new markets. 
• Consumer Shift: Growing demand for eco-friendly, connected, and personalized car options will shape the future. Expect customization, autonomous features, and a focus on safety and convenience. 
• Global Alignment: The GCC market is poised to integrate with global trends like electric and hybrid vehicles, offering immense growth potential for adaptable players. 

Unlocking Investment Opportunities: 

• This report is your roadmap to navigating the thriving GCC New & Used Car Market. Explore lucrative opportunities across various segments: 
• New Car Dealerships: Cater to the rising demand for premium and eco-friendly vehicles. Partner with leading manufacturers and offer innovative financing options. 
• Used Car Platforms: Leverage technology to create seamless online buying and selling experiences. Implement AI-powered valuations and virtual showrooms. 
• Fintech Solutions: Offer innovative financing options tailored to different segments, making car ownership more accessible. 
• Car Service and Maintenance: Cater to the growing demand for after-sales services and connected car solutions. Offer subscription-based models and data-driven maintenance plans. 

Conclusion: 

The GCC New & Used Car Market is poised for a vibrant future, fueled by a confluence of positive factors. As disposable incomes rise, populations grow, and technological advancements redefine the industry, the market is set to witness continued expansion and diversification. With a focus on sustainability, digitalization, and evolving consumer preferences, the GCC car market presents a lucrative landscape for innovative and adaptable players. So, fasten your seatbelts and prepare to navigate this exciting terrain - the GCC New & Used Car Market is waiting to propel you forward!

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Taxonomy

GCC New and Used Car Market Segmentation

By News Car Sales

Saudi Arabia

UAE

Kuwait

Qatar

Oman

Bahrain

By Domestic vs Re-Export Country Split

KSA Domestic and Re-Export

UAE Domestic and Re-Export

Kuwait Domestic and Re-Export

Qatar Domestic and Re-Export

Oman Domestic and Re-Export

Bahrain Domestic and Re-Export

By Used Car Transactions

Saudi Arabia

UAE

Kuwait

Qatar

Oman

Bahrain

UAE New Car and Used Car Market Segmentation

By Domestic vs Re-Export

Domestic

Re-Export

By Type of Vehicle

LPV

LCV

RV

By Region

Dubai

Sharjah

Abu Dhabi

Others

For More Insights On Market Intelligence, Refer To The Link Below: –

GCC New and Used Car Market

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SOURCE Ken Research