UAE Used Car and Auto Classified Market Size, Share & Forecast Analysis Report: Ken Research

On Oct 11, 2021

The report titled “UAE Used Car and Auto Classified Market Outlook to 2025” provides a comprehensive analysis on the status of used car industry in UAE. The report covers various aspects including volume of used cars & market size, export & re-export of used and new cars by transaction value & by country, trends & developments, growth drivers, issues & challenges faced by the industry, government regulations, challenges & restraints, SWOT analysis, Porter 5 forces analysis, recent developments and other aspects. Further, the report focuses on the UAE Used Car Market Segmentation by Type of Car (SUV/Crossover, Sedan, Coupe, Hatchback, Pickup Truck, Sports Car, Convertible, and Others), by Manufacturers on the basis of Region (Japanese, German, American, Korean, British, and Others), by Region (Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Fujairah, Ras Al Khaimah, and Ajman), and by Sales Channel (B2B/B2C Dealership, Online Marketplace including Classified Platforms and C2C-Word of Mouth by sales volume and transaction value). UAE Used Car Industry report concludes with projections for the future of the industry including forecasted sales revenue and volume by 2025, Covid-19 impact, and analysts’ take on the future and directory of automobile dealers in luxury segment in UAE.

UAE Used Car Market Overview and Size

UAE is one of the biggest automobile markets in the industry. The market of used cars has grown at very fast pace in the last few years. The market size by value has registered a five-year CAGR of 36% (2015-2020) as the total value of sales increased from AED 11.3 Billion in 2015 to AED 52.1 Billion in 2020. The market size by volume increased from 145,150 cars in 2015 to 491,463 cars in 2020 while registering a five-year CAGR of 28% in the period. The market had initially slowed down in between 2015 and 2017 due to fall in export value of crude oil in 2015 oil which adversely impacted the purchasing power of consumers. However, since 2017 the market had witnessed tremendous growth. There are a number of growth drivers which has resulted in expansion of the market; these include improving quality of used cars and large number of expatriates among other determinants. There have been a number of regulatory changes that have impacted the market such as the imposition of VAT of 5% for sales of used as well as new cars in 2018. There are a number of challenges that exist for the market such as price discrepancies, lack of standardization and others. Customers of the used cars can be divided according to their needs. The passion for cars in the country is one of the biggest reasons that more and more players are entering the market. Further, the used car market can be segmented on the basis of import, export and re-export of used car sales based on brands and countries. In recent times manufactured certified cars are gaining foothold in the market as they provide reliable quality of cars.

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UAE Used Car Market Segmentation

By Domestic Sales by Market Structure: the domestic used car market of UAE has been segmented on the basis of channels of distribution. The channels of distribution are B2B/B2C dealerships, online marketplace platforms including classifieds and C2C (word of mouth). Online marketplace platform including classified sales have an outright market share of 75% followed by 21% market share for dealership and the rest 4% is with C2C channel in 2020.

By Domestic Sale by Type of Car: Among this segment SUV/crossover used cars are the market leaders with ~41% of the market share in 2020 followed by sedan, coupe, hatchback, pickup truck, sports car and convertible. SUV are one of the most common types of cars that are sold in the market.

By Domestic Sale by Type of Manufacturer: The Japanese manufactured used cars enjoy the market leadership with 41.6% of the total market by volume in 2020. It is followed by German manufactured cars with 19.4% of market share and American manufactured cars with market share of 17.5% of the total market as of 2020. The domestic sale of used car is segmented into Japanese, German, American, Korean, British, and others.

By Domestic Sale by Region: 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 by volume of used cars accounting for 61.9%, followed by Sharjah with 14.6% of the overall market, and Abu Dhabi with 18.4% market share in 2020.

Competitive Landscape in UAE Used Car Market

The competition in the market is highly fragmented with no single player accounting for majority market share in UAE. There are three sales channels used by the players i.e., dealerships, classifieds and online marketplace platforms. Most of the online marketplace players operates via both online medium as well as through physical retail outlets such as Al-Futtaim Automall. There are more than 400 dealerships in the market with Al- Naboodah, Al-Tayer and Arabian Automobiles as some of the biggest players in the market. Classified platforms have grown in number and currently there are more than 40 online portals in the market. Dubizzle, Dubi Cars, Carmudi and Yalla Motors are some of the biggest online players in the market. Dubizzle is the market leader with 73% of the market share under the segment of classified platform in UAE. The companies compete with each other on the basis of prices; value added service, brand reputation, digital presence and others. Many companies are trying to attract the customers through sales promotion. The cars dealers generate revenue by buying a car at low price, refurbishing the car and selling the car at markup prices. The competitive scenario is expected to intensify in the near future as the market gathers momentum. 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. Moreover, the advent of COVID-19 has enabled the customers in adapting to the digital medium wherein these individuals are better suited to make purchasing and selling decision through online mode. Therefore, used car sales through online marketplace and classified platforms are expected to record massive growth in coming years. For gaining advantage in this domain, these players are offering services such as doorstep delivery, inspection of cars at home etc., which is better suited to the customers as there is resistance in travelling to a retail outlet as it is time consuming and fear of contracting COVID-19. Cars24, a leading online marketplace player in India have expanded their business in UAE since April 2021 to capture the increasing demand of used cars in UAE thereby, generating massive revenue in the upcoming years.

UAE Used Car Market Future Outlook and Projections

The market size by value is expected to grow at a five-year CAGR of 17% increasing from AED 52.1 billion in 2020 to AED 112.5 billion in 2015. The market size by volume is expected to grow at a five-year CAGR of 9.6% from 2020 to 2025 increasing from 491,463 cars sold in 2020 to 782,191 in 2025. Revival of the country’s economy followed by the aftermath of COVID-19, adaptation of digital medium, increasing demand of private ownership, increased awareness on health and hygiene due to the onset of COVID-19 resulting in increasing demand of private transportation medium, increasing competition are some of the factors which will help the market to grow in the future. A number of operational and marketing changes are expected to happen in the market as the companies are becoming more and more customer centric. The market size by sales volume of online marketplace platform including classified players will surge at a 5-year CAGR of 1.2% from 2020 to 2025. On the other hand, the market size by sales volume via C2C (word of mouth) channel will shrink at a five-year CAGR of -4.7% in the same period. The domestic sales by region will grow at the fastest rate in Sharjah followed by Dubai and Abu Dhabi, while the demand in other emirates will almost remain constant.

Key Segments Covered in UAE Used Car Market

Used and New Cars Re-Export by Country
UAE Free Zone
Saudi Arabia
Iraq
China
Oman

Used and New Cars Export by Country
UAE Free Zone
Mali
Sudan
Somalia
Congo

By Type of Car
SUV/Crossover
Sedan
Coupe
Hatchback
Pickup Truck
Sports Car
Convertible
Other (Utility Truck, Van, Wagon etc.)

By Type of Manufacturer on the basis of Region
Japanese
German
American
Korean
British

By Region
Dubai
Sharjah
Abu Dhabi
Umm Al Quwain
Ras Al Khaimah
Fujairah
Ajman

By Sales Channel
Online Marketplace Players including Classified Channel
B2B/B2C Dealers
C2C – (Word of Mouth)

Key Target Audience

Used Car Dealerships
Classified Used Car Retailing Websites
Online Marketplace Websites dealing in Used Car
Auction Players
Used Car Financing Companies
Government Bodies
Investors and Venture Capital Firms
Used Car Associations
Used Car Buyers
Used Car Sellers

Time Period Captured in the Report:

Historical Period: 2015-2020
Forecast Period: 2020-2025

Used Car Companies in UAE:

Dealerships
Al-Naboodah Automobiles
Arabian Automobiles
Al-Tayer Motors LLC
Al-Ghandi Auto Group
Online Marketplace Players
Al-Futtaim Automall
Gargash Motors and General Trading LLC
Alba Trading FZC
Cars24
The Elite Cars
Swaidan Motors
Galdari Pre Owned
Autotrust
SellAnyCar
Car Switch
Classified Companies
Dubizzle
Yalla Motor
Dubicars
Carmudi

Key Topics Covered in the Report

Value Chain Analysis of UAE Used Car Market
UAE Used Car Market Ecosystem
Customer Profile of UAE Used Car Market
UAE Used Car Market Size, 2015-2020
UAE Used Car Market Research Report 2021
UAE Used Car Market Size by Transaction Value and by Sales Volume, 2015-2020
UAE Used and New Cars Re-Export by Value and by Country, 2015-2020
UAE Used and New Cars Export by Value and by Country, 2015-2020
UAE Used Car Market Segmentation, 2020
Competitive Landscape of UAE Used Car Market, 2020
Parameters of Competition of UAE Used Car Market
Market Share of UAE Used Car Market Players – (Dealership Network, Online Marketplace Players and Classified Companies)
Company Profiles of Arabian Automobiles, Al-Naboodah, Al-Tayer Group, Dubizzle, Yalla Motor, DubiCars, Carmudi, Al-Futtaim Automall, Elite Cars, SellAnyCar, and Car Switch
Trends and Developments in UAE Used Car Market
Growth Drivers of UAE Used Car Market
Challenges and Restraints in UAE Used Car Market
SWOT Analysis of UAE Used of Market
Porter 5 Forces Analysis of UAE Used Car Market
Government Regulations in UAE Used Car Market
Recent Developments in UAE Used Car Market
Channels Used for Selling Pre-Owned Cars in UAE – (Dealerships, Classifieds and Online Marketplace)
Impact of COVID-19 on UAE Used Car Market
UAE Used Car Market Future Outlook and Projections, 2020-2025E
Analyst Recommendations
Macro-Economic Factors Affecting Used Car Market in UAE
Directory of Automotive Dealers in Luxury Segment in UAE

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Ken Research

Ankur Gupta, Head Marketing & Communications

support@kenresearch.com

+91-9015378

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