UAE Automotive industry is the second largest in the GCC after Saudi Arabia. In the 2016 it reported the deepest lost in the last 30 years, hit by several factors and following an impressive growing decade.
Before to sudden fall in the 2016, the UAE automotive sector had reported five years of impressive growth. During that period the market escalated several positions in the global ranking entering in the top 30. In 2014, UAE’s automotive trade value reached USD 20.7bn, up 43% from 2010, 94% of which was imports. Cars represented 63% of UAE’s automotive imports from the World followed by parts and accessories (12.6%) and trucks (12.1%).
The Abu Dhabi’s Government started ‘The Auto City’ project in the Mussafah area, a cluster of advanced workshops and service centers, attracting investment in automotive manufacturing and spare part logistics.
However, in the 2016 the market reported a huge fall, hit by the low economic growth and actions taken by the government to minimize the budget deficit, which have penalized the internal demand.
Coming out from the most severe market decline of the last 30 years, the UAE market perspectives from 2017 onwards are back positive. Indeed, we forecast a moderate decline in the 2018, due to the new VAT introduction, but in all the others years up to the 2022 the market is expected up.
Indeed the 2018 fall is not due to the direct effect of VAT introduction, but to the pull ahead of sales in the 2017, mainly for company vehicles, but for private as well, for those wishing to avoid the January 1st, 2018 VAT payment.
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.
Auto Data 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.
All these and more within our UAE Corner Store