UAE auto market shifts gears, posting 9.3% growth in H1 – News

SUVs continue to dominate the UAE market, accounting for 50.5% of sales in the first half



The UAE automotive market has shown signs of recovery with promising sales across the board after plummeting in 2020 during the Covid-19 pandemic. — File photo

Published: Tue, Aug 2, 2022, 6:58 PM

The overall automotive market in the United Arab Emirates recorded 9.3% growth in the first half of 2022 compared to the same period of 2021, with the total number of units sold in June increasing by 8.1% year on year. on the other.

According to Al-Futtaim Automotive, which revealed the data, SUVs continue to dominate the UAE market, accounting for 50.5% of sales for the first half of the year.

Al-Futtaim Automotive, which counts Al-Futtaim Toyota and Lexus, Trading Enterprises (Honda, Volvo, Jeep, RAM, Dodge and Polestar among its brands), said it closed the first half with a 5.7% increase in volume . YoY and a total market share of 35.4%, the distributor said in a statement.

According to a report by Market Research UAE, the UAE automotive market has shown signs of recovery with promising sales across the board after plummeting in 2020 during the Covid-19 pandemic. Passenger car sales revenue is expected to reach $5.8 billion this year, after demand returned to full steam from August to September 2021. During this period, buyer interest has even exceeded pre-Covid-19 figures.

“New car sales are expected to increase by up to 30% in 2022 as more brands enter the market and production and shipments adjust to consumer demands.”

Vincent Wijnen, senior managing director of Al-Futtaim Automotive, said the company had increased its market share in some key segments, with one of its main brands, Toyota, continuing to dominate the SUV and car market.

He said the UAE’s Net Zero strategy offers an opportunity for automakers and dealers to embrace it and be a driver of change to support this vision.

“Toyota is the market leader in the SUV segment, accounting for 25.2% of sales from January to June. Toyota saw an 11.4% year-over-year increase in total volume and a 0.5% increase in market share. Growth also continues across Al-Futtaim Automotive brands,” the statement said.

While Volvo grew its volume by 1.6% year-to-date, Dodge and RAM saw a 14.4% volume increase for the first half of 2022 compared to the first half of 2021, with RAM occupying the top spot. position in the large pickup segment, increasing segment share by 18.4%. The Polestar 2, the Swedish brand of performance electric cars that Al-Futtaim Automotive launched on the market with the brand’s entry in February, has completely sold out, reflecting global trends, the statement said.

In July, Polestar reported worldwide deliveries of approximately 21,200 cars in the first six months of 2022, more than double the deliveries of 9,510 cars in the same period of 2021, an increase of almost 125%.

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