UAE Used Car Growth Opportunities

UAE Used Car Growth Opportunities

High-standard Practice to Culminate Customer Experience and Build Reputation

RELEASE DATE
21-Apr-2022
REGION
South Asia, Middle East & North Africa
Deliverable Type
Market Research
Research Code: PC9F-01-00-00-00
SKU: AU02314-SA-MT_26461
AvailableYesPDF Download
$4,950.00
In stock
SKU
AU02314-SA-MT_26461
$4,950.00
DownloadLink
ENQUIRE NOW

Description

The UAE’s used car market experienced unprecedented growth in 2021. On the one hand, the global shortage of microchips impacted new car supply, boosting the demand for used cars, on the other hand, the recovery of market sentiment in the UAE and EXPO 2020 Dubai (postponed to 2021) boosted the Vehicle Miles Traveled (VMT) in the country. As a result, the used car market in 2021 in the UAE was a seller’s market, with a major challenge being sourcing of used cars.

The increased demand has driven up the residual value. Popular models, depreciated much lesser in 2021 compared to 2019. The average price per vehicle also went up by almost 10% compared to pre-pandemic levels in 2019. Car owners in the UAE were incentivized to sell their vehicles at a good value.

With market growth, the industry has also witnessed many innovations in customer experience and business models. In general, a few market pioneers have led the way by increasing service standards and aftersales assurance to improve customer confidence in used cars.

Most sellers have adopted digitalization in car listing. Meanwhile, franchised dealers and major independent dealers have immensely taken to online payment and financing. Other value-added services, such as standard inspection and warranty service, have saved customers time for due diligence. In general, the process and time spent on purchasing a used car in the UAE have shortened, and the ease of making a purchase has improved.

In the post-pandemic era, the UAE’s used market is expected to grow at a CAGR of 8.3% from 2021 to 2025. More than 1 million used cars are expected to be sold by 2025, driven by the competitive growth of franchised dealer Certified Pre-owned (CPO) and organized independent dealers.

Author: Joslyn Li

Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on the UAE Used Car Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Scope of Analysis

Segmentation

Key Competitors

Key Growth Metrics

Growth Drivers

Growth Restraints

Forecast Assumptions

Revenue and Average Price Forecast

Revenue Forecast by Channel

Volume Forecast

Volume Forecast by Channel

Percent of Sales Volume by Channel

Percent of Sales Volume by Vehicle Type

Revenue and Volume Forecast Analysis

Revenue and Volume Forecast Analysis by Channel

Pricing Trends and Forecast Analysis

Competitive Environment

Revenue Share

Revenue Share Analysis

Macroeconomic Indicators

Macroeconomic Indicators—Demographic Highlights

Used Car Market Dynamics

Used Car Market Dynamics (continued)

Used Car eRetailing Trends

Recent Fundraising and Engagements by Major Participants

Used Car Value Proposition Analysis

Used Car Value Proposition Analysis (continued)

Used Car Value Proposition Analysis (continued)

Percent of Sales Volume by Vehicle Age

Factors Impacting Residual Value (RV) of Brands in the UAE

Distribution Structure

Distribution Structure Analysis

Distribution Structure—Franchised Dealers

Distribution Analysis—Franchised Dealers

Distribution Analysis—Franchised Dealers (continued)

Benefits of Certified Pre-owned Cars for OEMs and Dealers

Certified Pre-owned Program Profiles—Top 4 Volume OEMs*

Certified Pre-owned Program Profiles—Top 5 Premium OEMs*

Distribution Structure—Independent Dealers

Distribution Structure Analysis—Independent Dealers

Distribution Structure Analysis—Independent Dealers (continued)

Distribution Structure—C2C

Distribution Structure Analysis—C2C

Distribution Structure Analysis—C2C (continued)

Key Used Car Clusters—Al Quoz

Key Used Car Clusters—Al Aweer

Key Used Car Clusters—Souq Al Haraj

The Online Used Car Landscape in UAE

Franchised Dealer CPO Online Presence Analysis—Volume Brands

Franchised Dealer CPO Online Presence Analysis—Premium Brands

Non-franchised Dealer Online Used Car Platforms

Case Study—Online Marketplace: YallaMotor

Case Study—Online Independent Dealer: Cars24

The Used Car Warranty Practice in UAE

The Landscape of Warranty Providers in the UAE

Key Growth Metrics

Revenue Forecast

Volume Forecast

Forecast Analysis

Forecast Analysis (continued)

Key Growth Metrics

Revenue Forecast

Volume Forecast

Forecast Analysis

Key Growth Metrics

Revenue Forecast

Volume Forecast

Forecast Analysis

Key Growth Metrics

Revenue Forecast

Volume Forecast

Forecast Analysis

Growth Opportunity 1—Online Transactional Business Model for a Seamless Customer Experience

Growth Opportunity 1—Online Transactional Business Model for a Seamless Customer Experience (continued)

Growth Opportunity 2—Refurbishment Service for Meeting Used Car Demand

Growth Opportunity 2—Refurbishment Service for Meeting Used Car Demand (continued)

Growth Opportunity 3—Franchised Dealer CPO Program for Providing High Quality Used Cars

Growth Opportunity 3—Franchised Dealer CPO Program for Providing High Quality Used Cars (continued)

Growth Opportunity 4—Used Cars for Providing Mobility as a Service

Growth Opportunity 4—Used Cars for Providing Mobility as a Service (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

The UAE’s used car market experienced unprecedented growth in 2021. On the one hand, the global shortage of microchips impacted new car supply, boosting the demand for used cars, on the other hand, the recovery of market sentiment in the UAE and EXPO 2020 Dubai (postponed to 2021) boosted the Vehicle Miles Traveled (VMT) in the country. As a result, the used car market in 2021 in the UAE was a seller’s market, with a major challenge being sourcing of used cars. The increased demand has driven up the residual value. Popular models, depreciated much lesser in 2021 compared to 2019. The average price per vehicle also went up by almost 10% compared to pre-pandemic levels in 2019. Car owners in the UAE were incentivized to sell their vehicles at a good value. With market growth, the industry has also witnessed many innovations in customer experience and business models. In general, a few market pioneers have led the way by increasing service standards and aftersales assurance to improve customer confidence in used cars. Most sellers have adopted digitalization in car listing. Meanwhile, franchised dealers and major independent dealers have immensely taken to online payment and financing. Other value-added services, such as standard inspection and warranty service, have saved customers time for due diligence. In general, the process and time spent on purchasing a used car in the UAE have shortened, and the ease of making a purchase has improved. In the post-pandemic era, the UAE’s used market is expected to grow at a CAGR of 8.3% from 2021 to 2025. More than 1 million used cars are expected to be sold by 2025, driven by the competitive growth of franchised dealer Certified Pre-owned (CPO) and organized independent dealers. Author: Joslyn Li
More Information
Deliverable Type Market Research
Author Joslyn Li
Industries Automotive
No Index No
Is Prebook No
Podcast No
WIP Number PC9F-01-00-00-00