Luxury Cars - United Arab Emirates

United Arab Emirates

Revenue in the Luxury Cars market is projected to reach €552m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.80%, resulting in a projected market volume of €575m by 2029.
Luxury Cars market unit sales are expected to reach 4.7k vehicles in 2029.
The volume weighted average price of Luxury Cars market in 2024 is expected to amount to €120k.
From an international perspective it is shown that the most revenue will be generated in the United States (€6,446m in 2024).

Key regions: United States, Worldwide, United Kingdom, Europe, Germany

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Analyst Opinion

The Luxury Cars market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: Customers in United Arab Emirates have shown a strong preference for luxury cars, with a particular emphasis on high-end brands and models. This can be attributed to the country's affluent population and their desire to showcase their wealth and status. Additionally, customers in United Arab Emirates are known for their appreciation of luxurious and high-quality products, and this extends to their choice of cars.

Trends in the market: One of the key trends in the Luxury Cars market in United Arab Emirates is the increasing demand for electric and hybrid luxury cars. This can be attributed to the growing global awareness of environmental issues and the desire to reduce carbon emissions. Luxury car manufacturers have responded to this trend by introducing a range of electric and hybrid models that combine sustainability with luxury and performance. Another trend in the market is the rise of luxury SUVs. Customers in United Arab Emirates are increasingly opting for spacious and versatile luxury SUVs, which offer both comfort and practicality. This trend can be attributed to the country's unique geography, with its desert landscapes and rugged terrain, which make SUVs a popular choice for both urban and off-road driving.

Local special circumstances: United Arab Emirates is known for its high disposable income and low tax environment, which has made it an attractive market for luxury car manufacturers. The absence of import duties and value-added tax (VAT) on luxury cars has contributed to the growth of the market, as it makes luxury cars more affordable for customers. Additionally, the country's excellent infrastructure and well-maintained roads provide an ideal environment for luxury car owners to enjoy their vehicles.

Underlying macroeconomic factors: The growth of the Luxury Cars market in United Arab Emirates can also be attributed to the country's strong economy and stable political environment. The country has a high GDP per capita and a large population of high-net-worth individuals, which creates a favorable market for luxury car manufacturers. Furthermore, the government's focus on diversifying the economy and reducing dependence on oil has led to increased investment in sectors such as tourism and hospitality, which in turn has driven the demand for luxury cars. In conclusion, the Luxury Cars market in United Arab Emirates is experiencing significant growth due to customer preferences for high-end brands, the increasing demand for electric and hybrid luxury cars, and the popularity of luxury SUVs. The local special circumstances, such as the absence of import duties and VAT on luxury cars, and the country's strong economy and stable political environment, have also contributed to the growth of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).