Saiful Kameli

Work With Attitude

Market Research of Automotive Sector in United Arab Emirates

market research UAE

image source : pixabay

For anyone who wants to do any business in United Arab Emirates, it’s important to know about the economic conditions, leading sectors, or even the regulations. Here, we cover the market research UAE and give you information especially in automotive sector before you take any business on this country.

Market Research UAE in a Nutshell

The Industry of Automotive in the UAE has faced many challenges particularly for two years in a row, 2016 and 2017. It’s caused by the economical lack in a few years ahead, overstock numbers of cars, and the high demands of pre-owned cars.

The U.A.E. will also have a good condition of automotive markets due to the factors such as the cost of the fuels and the tariffs of import are sinking lower and the favorable government’s tax. It’s also becoming a good climate for the market of the expensive cars, the electric vehicles, and motorcycles.

Passenger Cars

It’s approximately more than 80 % of the automotive market in the UAE is led by passenger cars, and the 20% percent is coming from commercial vehicles such as trucks, vans or buses. The cars sector in 2017 is led by Toyota, Nissan and Mitsubishi that are known as Japanese vehicle manufacture.

Commercial Vehicles

Commercial vehicles sectors will be affected by the growth that is caused by the infrastructure projects. Heavy sales of the commercial vehicle will be also growing well due to the projects of building infrastructure. The demand for bus will also show a positive growth due to the growing demand of the using of construction workers.

  • Tariffs

The tariff of the cars is taken from 5 percent customs duties and 12 percent customs duties for trucks.

  • Taxes

The U.A.E. government will take 5 percent VAT on each vehicles sold.

  • Barriers

The U.A.E.’s trade policy is based on WTO’s obligations.

Market Entry

All the vehicles that are entering U.A.E. should have ESMA’s safety regulations, such as:

  • Air bags and Head restraints should be applied in in all seats and particularly for buses, the passengers’ capacity is only provided for 22 passengers.
  • Applying Safety belts and Anti Braking System (ABS) in all products of vehicles.
  • Applying alarm to notify a speed limit for drivers that is allowed only in 120 km in cars and 100 km on buses.
  • All vehicles must not be modified and must be accident free.

Leading Sector

In the way to reduce carbon, The U.A.E. government had been promoting electric vehicles (EV’s). Furthermore, it’s also working on standardizing its regulations governing EV’s. Moreover, demand of cars and motorcycles is also increasing.

Opportunities

The U.A.E. currently is the sixth largest destination for U.S. exports of new passenger cars and second largest destination for used vehicles. It means there is an opportunity for increased exports of U.S. aftermarket parts for those vehicles. But currently, there are still barriers to exporting automotive products to U.A.E. beyond the conformity of requirements.

By understanding market research UAE, it will bring you some advantages which are really needed to increases sales especially in an automotive sector.

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