UAE Used Car and Auto Classified Market Outlook to 2022: Ken Research


The report titled UAE Used Car and Auto Classified Market Outlook to 2022 – By Revenue Streams (Commission, Paid Listings, Banner Advertisement), By Export and Domestic Salesprovides a comprehensive analysis on the UAE used car dealership and auto classified companies. The report covers various aspects including used car sales volume, transaction value and net income of dealers and classifieds; market segmentation by region (Dubai, Sharjah, Abu Dhabi, Umm Al Quwain, Ras Al Khaimah, Fujairah and Ajman), by Sales channel (B2B/B2C Dealership, Classified, C2C word of mouth) and by revenue streams, growth drivers, challenges, key regulations, market share of major dealers and classified companies, future outlook and analyst recommendation.

This report will help the readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for UAE car dealerships, auto and horizontal classified portals, potential entrants and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Market Size

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, Alba Cars 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. Sharjahis 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 Segments Covered:-

By Type of Regions:- Dubai, Sharjah, Abudhabi, Umm Al Quwain, Ras Al Khaimah, Fujairah, Ajman

By Sales Channel: B2B/B2C Dealers, C2C Classifieds

By Type of Cars:- Crossover, 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

Key Target Audience:-

Used Cars Dealerships

Classified Used Car Retailing Websites

Used Car Buyers

Used car Sellers

Time Period Captured in the Report:

2012-2017 – Historical Period

2017-2022 – Future Forecast

Companies Covered:

Used Car Dealerships:, Al-Futtaim, Arabian Automobiles, Al Naboodah, Elite Cars, Al Tayar,

Classified Used Car Retailing Websites:- Carmudi, Yalla Motors, Dubizzle

Key Topics Covered in the Report:-

UAE Used Car Market Value Chain Analysis

UAE Used Car Market Size, 2012 – 2017

UAE Used CAR MARKET Segmentation

SWOT Analysis For UAE Used Car MarketIssues and Challenges in Switzerland Telemedicine Market

Challenges and Restraints in UAE Used Car Market

Company Profiles of Al-Futtaim group, Arabian Automobiles, AL Tayer Group     , Elite Cars, Al-Naboodah,,, Carmudi, Yalla Motors

Porter Five Forces Analysis of UAE Used Car Market

Competitive landscape in UAE used car market

Analyst Recommendations

Macroeconomic Factors in UAE used car market

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Ankur Gupta, Head Marketing & Communications