Passenger Cars - United Arab Emirates

United Arab Emirates

Revenue in the Passenger Cars market is projected to reach €7.4bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.77%, resulting in a projected market volume of €7.7bn by 2029.
The market's largest segment is SUVs with a projected market volume of €3.3bn in 2024.
Passenger Cars market unit sales are expected to reach 213.10k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to €36.29k in 2024.
With a vehicle unit sales share of 27.8% in 2024, Hyundai is expected to have one of the highest market share in the selected region.
The value market share of the make Audi in the selected region is expected to stand at 29.0% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (€555bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in United Arab Emirates is experiencing significant growth and development.

Customer preferences: Customers in United Arab Emirates have shown a strong preference for luxury and high-end passenger cars. This can be attributed to the high per capita income in the country and the desire to showcase wealth and status. Additionally, customers in United Arab Emirates prioritize comfort, safety, and advanced technological features when choosing a passenger car. Fuel efficiency and environmental friendliness are also becoming important factors for customers.

Trends in the market: One major trend in the Passenger Cars market in United Arab Emirates is the increasing demand for electric and hybrid vehicles. This trend is driven by the government's efforts to promote sustainable transportation and reduce carbon emissions. The government has implemented various incentives and subsidies to encourage the adoption of electric and hybrid vehicles, such as exemption from registration fees and access to free charging stations. As a result, more car manufacturers are introducing electric and hybrid models to cater to this growing demand. Another trend in the market is the rise of car-sharing and ride-hailing services. These services have gained popularity in United Arab Emirates, particularly in urban areas, as they provide a convenient and cost-effective alternative to owning a car. The younger generation, in particular, is embracing these services as they value flexibility and affordability. This trend is expected to continue as car-sharing and ride-hailing companies expand their operations and offer more diverse options to customers.

Local special circumstances: United Arab Emirates has a unique market for passenger cars due to its high population of expatriates. Many expatriates choose to purchase cars during their stay in the country, leading to a higher demand for passenger cars. Additionally, the hot climate in United Arab Emirates necessitates the use of air conditioning in vehicles, which is a key consideration for customers when purchasing a car.

Underlying macroeconomic factors: The growth and development of the Passenger Cars market in United Arab Emirates can be attributed to several underlying macroeconomic factors. The country has a strong and stable economy, with high levels of disposable income and a growing middle class. This has increased the purchasing power of consumers and their ability to afford passenger cars. Additionally, the government's focus on diversifying the economy and reducing dependence on oil has led to increased investment in infrastructure and transportation, further driving the demand for passenger cars. In conclusion, the Passenger Cars market in United Arab Emirates is developing in response to customer preferences for luxury and high-end vehicles, the increasing demand for electric and hybrid cars, the rise of car-sharing and ride-hailing services, local special circumstances such as the expatriate population and hot climate, and underlying macroeconomic factors such as a strong economy and government investment in transportation infrastructure.

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).