Emirates Automotive Market has lost only 2% in November having interrupted the sharp decline thanks to positive data from non-oil sector and by the anticipated demand in view of VAT 5% introduction from next January. However, the 2018 is foreseen down again.
UAE’s non-oil sector continues to look sprightly: The PMI rose in October on the back of higher new orders at home and abroad, with employment increasing for the 18th straight month. However, as is the case across the Gulf region, oil production cuts have dented overall economic growth. In early November, the cabinet approved the 2018 federal budget. It is significantly more expansionary than last year’s, and plans a 5.6% increase in expenditure to further solidify non-oil growth, with a particular focus on education, health and other social development programs.
UAE vehicles market is running across the hardest crisis of last decades, following a long period of robust expansion. Indeed, in recent years sales grew from 291.000 in the 2012 to the all time record of 408.252 established in the 2015. The demand contraction related to the oil price decline in the international market hit the country more than any other in the region. Indeed, it must be considered the relevance of trading activity for vehicles registered in the Emirates and then exported (others GCCs and Africa). This activity has been hit as well, due to low demand from Africa and others GCC countries. The effect was a huge fall in the 2016 and again in the 2017, when full year sales are projected at 265.000.
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In the 2017, following a really negative first half, the demand was back and since July the market has progressively recovered the gap. In October light vehicles sales have been 21.056 (-8.2%) and in November 22.889 (-2.5%) under the pull-ahead effect generated in private consumers by VAT introduction, effective January 2018, with year to date figures at 242.795, down 14.2%.
Research, Consulting, Data & Forecast
F2M covers intensively this market with several products developed to help any investigation required. Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2022. AutoData in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end. See details within UAE Corner Store