UAE Used Car and Auto Classified Market 2018-2022
DUBLIN, April 30, 2019 /PRNewswire/ -- The "UAE Used Car and Auto Classified Market Outlook to 2022" report has been added to ResearchAndMarkets.com's offering.
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 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. Sharjah 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 Topics Covered:
1. Executive Summary
2. Research Methodology
3. UAE Used Car Market Value Chain Analysis
- 3.1. UAE Used Car Market Ecosystem
- 3.2. Processes Involved in UAE Used Car market
- 3.2.1. Upstream Process
- 3.2.2. Downstream Process
4. Customer Profile
5. UAE Used Car Market, 2012 - 2017
5.1. UAE Used Car Market Overview
5.2. UAE Used Car Market by Transaction Value and by Sales Volume, 2012-2017
6. UAE Used Car Market Segmentation, 2017
6.1. By Domestic and Export Sales, 2017
6.1.1. UAE Used Car Market Export Sales Segmentation, 2017
- By Region
6.1.2. UAE Used Car Domestic Sales Segmentation, 2017
- By Sales Channel (B2B/B2C Dealers, Classified and C2C - Word of Mouth) By Sales Volume, 2017
- By Sales Channel (B2B/B2C Dealers and Classified) By Net Revenue, 2018
- By Type Of Car, 2017
- By Type of Manufacturer
- By Region
7. Competitive Landscape in UAE Used Car Market, 2017
7.1. Parameters of Competition
7.2. Competitive Scenario in UAE Used Car Market
7.2.1. Dealer's Market Share by Net Revenue, 2018
7.2.2. Classified Companies Market Share by Net Revenue, 2018
7.3. Company Profiles of Major Dealers
7.3.1. SellAnyCar.com
7.3.2. Al-Futtaim group
7.3.3. Arabian Automobiles
7.3.4. Al-Naboodah
7.3.5. Elite Cars
7.3.6. Al Tayer Group
7.3.7. Carswitch
- Company Profiles of Major Auto Classifieds
7.3.8. Dubizzle.com
7.3.9. Yalla Motors
7.3.10. Carmudi
8. Trends and Developments in UAE Used Car Market
- Increasing Popularity of Used Cars
- Discrepency in Prices
- Value Added Service
- Emergence of Car Leasing Companies
- Sales Promotion
- Sellers Increasing Awareness
- Effect of Technology
9. Growth drivers
- Emergence of Online Auto Portals
- Preferance for Vintage Cars
- Large Number of Expatriates
- High Turnover of Cars
- Import of Used Cars
10. Challenges and Restraints in UAE Used Car Market
- Irregular Prices
- Lack of Equitable Deal
- Lack of Knowledge Regarding Transfer of Car Ownership
- Value Added Tax
- Electric Vehicle
- Communicating Value
- Restrained Financing Options
- Registration Process
- Presence of Substitute
11. SWOT Analysis For UAE Used Car Market
12. Porter 5 Forces Analysis of UAE Used Car Market
13. Government Regulations in UAE Used Car Market
14. Recent Developments
15. Channels Used for Selling Cars in UAE
- Dealerships
- Classifieds
- Word of Mouth
16. UAE Used Car Market Future Outlook, 2017-22
- Probable Scenario in UAE and their Effect on Used Car Market
16.1. Market Segmentation
16.1.1. By Domestic and Export Sales, 2017-22
16.1.2. By Sales Channel (B2B/B2C, Classifieds and Word of Mouth), 2017-22
- By Sales Channel (B2B/B2C Dealership and Online Classifieds) by Net Revenue
16.1.3. By Region
17. Analyst Recommendations
18. Macroeconomic Factors Affecting Used Car Market in UAE
18.1. New Car Sales
18.2. Disposable Income
18.3. Car Rental Fleet Size
For more information about this report visit https://www.researchandmarkets.com/r/kyulyv
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