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 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 dealers Certified Pre-owned (CPO), and organized independent dealers.
Key Topics Covered:
1. The Strategic Imperative
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative
The Impact of the Top Three Strategic Imperatives on the UAE Used Car Industry
Growth Opportunities Fuel the Growth Pipeline Engine
2. Growth Opportunity Analysis
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
3. Revenue Share Analysis
UAE Used Car Industry Overview
Macroeconomic Indicators
Macroeconomic Indicators - Demographic Highlights
Used Car Market Dynamics
Used Car eRetailing Trends
Recent Fundraising and Engagements by Major Participants
Used Car Value Proposition Analysis
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
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 - C2C
4. Key Used Car Segment Analysis - Clusters Analysis
Key Used Car Clusters - Al Quoz
Key Used Car Clusters - Al Aweer
Key Used Car Clusters - Souq Al Haraj
5. Key Used Car Segment Analysis - eRetailing in Used Cars
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