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Dubai to pump up automotive industry

While some auto industry leaders are looking to the growth potential of the UAE, plenty are already reaping its rewards.

Dubai has a high earning capacity on high end vehicles compared to any other region in the world. In the UAE, two out of 10 cars sold is from a luxury brand, with BMW, Audi, and Mercedes in highest demand. That being said, the desert raises the market for SUVs.

Approximately 1.4 million cars were sold nationally in 2016, and with an expected long term growth in sales of 2 million per annum by 2021.

Consumers in the middle east prefer newer cars as compared to the rest of the world. They utilize the vehicles for a maximum of 8 years, the global average utility being 12 years.

Given a though, the increase in sales and a maturing automotive industry throws the opportunity to offer and commence a market for new products and models to compete with traditional products.

While Dubai is strongly flourishing in the auto industry, it also acts as an significant country for exports. The UAE is a re-export hub for other Middle Eastern countries as well as Africa.

Currently, 60 percent to 70 percent of all automotive parts that are imported, are re-exported to different countries.

With such a boost in sales for newer vehicles,in the Middle East, there is an endless ocean of opportunities for auto parts and accessories, as well as a good domestic market in the UAE and its role as a re-export hub, Dubai is a main city to develop a network.

Source : newzmart
Posted on :2/28/2019