UAE new cars sales kept booming in the first half 2015 albeit the sharp fall of oil price in the international market. Toyota improved sales 12% keeping share on market above 30%.
The sharp drop in oil prices over the past year has caused the government of the United Arab Emirates (UAE) to take necessary fiscal measures to consolidate its public finances. In a recent move, the government decided to abolish fuel subsidies, which led to a 24% increase in the price of gasoline.
Moreover, last month, the government announced that it has finalized drafting legislation that will introduce new consumption and corporate taxes. These taxes are aimed not only at offsetting the low price of oil but also at providing more funds for important infrastructure projects.
High-frequency data show that business conditions in the UAE’s non-oil private sector economy continued to improve in the third quarter.
Fueled by roaring economies with huge investments deveoted in the non-oil industries development, strong population growth thanks to workers joining the country from South East Asia and managers and executives coming from Europe, Japan and US, the UAE Automotive industry flourished in the last decade with one of the fastest growth world-wide.
Indeed, behind the impressive growing number of new vehicles sold, there is an additional factor represented by the huge development of trading activity. new and used vehicles arriving from Japan, Korea and Europe are exported to others GCC countries and East Africa. Trading activity is stimulated by low tax and high cash.
New vehicles registrations include those units exported (while do not include vehicle pre-registered and imported, mainly from Oman) and actually it is not feasibile estracting data of the “net” domestic market.
Mirroring the country economic growth, the domestic new light vehicles market had boomed at 370.000 units in the 2008, before dropping over 50% when the 2009 global financial crisis severely hit the country and the oil sector. However, starting from the 2010, the market is growing inenterruptely and in the 2014 it has hit the new all time record, first time above the 400.000.
In the first half 2015, albeit the sharp decline of oil price, the market kept the momentum with a new impressive performance. Indeed, new vehicles sales had been 234.281, up 14.8% from the correspondent period last year.
The market leader, Toyota, reported a 12.7% increase with market share at 30.3%, the lowest increase among the best seventh brands. Second was Nissan (+20.4%) and third Mitsubishi (+18.4%).
While Koreans confirmed their relatively low market share – at 9.5% – BMW further improved the already strong position with market share grew at 4.2%.
Research, Consulting, Data & Forecast Store
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 2020.
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 Store