Rapidly Growing UAE Automotive Market
The automotive market in the United Arab Emirates (UAE) is considered one of the fastest-growing globally. In 2023, the number of vehicles reached 3.9 million, marking a 5.6% increase compared to 2022.
UAE’s Position in the Global Automotive Market
According to the International Organization of Motor Vehicle Manufacturers (OICA), the UAE ranks 58th in the world and 4th among Central Asian countries in terms of annual new vehicle registrations or sales. In 2022, over 207,000 new vehicles were registered, an increase of 9.9% compared to 2021.
Dubai – The Largest Emirate by Vehicle Count
Dubai is the UAE’s largest emirate by the number of vehicles. This region accounts for 37% of the UAE’s total vehicle fleet, with 1.44 million registered vehicles for a population of 2.35 million. This gives Dubai one of the highest vehicle-to-population ratios, with 540 cars per 1,000 people, significantly higher than New York (305 per 1,000 people) and London (213 per 1,000 people).
Unique Features of the UAE’s Vehicle Fleet
The average age of vehicles in the UAE is only 5 years, one of the lowest worldwide. SUVs are the most popular type, accounting for around 37% of the total vehicle fleet. Sedans and hatchbacks are also widely used.
Car Imports and Strict Import Regulations
Nearly all vehicles in the UAE are imported, with strict import regulations in place. Vehicles must be imported directly from the manufacturing country and must not be modified. Additionally, importing vehicles that have previously been used as taxis or police cars is prohibited.
Growth in New Car Sales and Leading Brands
In the last six years, new car sales have grown by 65.3%. Japan is the UAE’s largest car supplier, and top brands include Toyota, Renault/Nissan, and Mitsubishi.
- Toyota has consistently led the market since 2015, with popular models such as the Hilux, Land Cruiser 200, Prado, Corolla, Yaris, and Camry.
- Nissan maintains a strong presence with its broad range of sedans and SUVs. The brand was also among the first to promote electric vehicles, such as the Nissan Leaf, and its Patrol model remains a popular luxury SUV.
Popularity of Used Cars in the UAE
The used car segment also shows strong interest in a range of brands, including:
- Volkswagen, which has gained a strong position in the used car market due to its accessible ID series of electric vehicles.
- Ford, popular among American brands for models like the Mustang and a robust lineup of pickup trucks.
- Hyundai ranks fifth among popular used car brands, known for its affordable sedans and crossovers.
- Honda is popular for its economy models equipped with advanced safety features.
- Mitsubishi remains popular with models like the Pajero and Lancer.
Coming Up Next
In our next article, we’ll take a closer look at premium brands in the UAE automotive market. Stay tuned!