The Growth and Expansion of the UAE Auto Market
The UAE auto market has seen an explosion in the last 30 years with the industrialization of Dubai. As the region continues to grow and prosper, more and more people are attracted to the area in search of something better, and all of them need transportation. With a hefty demand for foreign cars, the UAE auto market has become a point of interest for many of the world’s auto makers.
According to the latest BMI reports on www.businessmonitor.com, the UAE auto market experienced a 7% increase over 2007, however this action still shows a slow down as the 2007 UAE auto market experienced an increase of 12%. This doesn’t foreshadow a negative turn, however the saturation of the UAE auto market is becoming a factor.
What kind of car is sought by one of the richest regions in the world? SUV’s have become hugely popular in the UAE auto market, with BMW and Mercedes taking the lead in terms of auto imports. Many investors in Dubai are either from the EU or see autos from Europe as the appropriate status symbol, and with their reliability in heavy traffic and phenomenal air conditioning systems, as well as high standard for luxury, it’s no wonder that the spacious Euro SUV’s have dominated the UAE auto market.
This is not to say that the market is strictly European. The UAE auto market has seen a recent surge in Chinese imports as dealers have begun to establish plants in Asia. In fact, many car buyers in the UAE auto market have shown themselves to be largely unpicky, as long as the features are there and the luxury is available.
A recent development for the Dubai Investment Park is the establishment of Praktiko GT, a Mid-Eastern and India-based auto manufacturer. Despite the recent leveling of auto sales in the region, it is believed that Praktiko will attract many locals with their affordable vehicles, and the lack of shipping costs on these cars will make them an attractive buy as well. Many automakers are now watching the UAE auto market with interest to see if this gamble pays off.
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