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UAE automotive market shifts gear, posts 9.3% growth in H1

SUVs continue to dominate the UAE market, making up 50.5 per cent of sales for the first half of the year

The overall automotive market in the UAE has recorded 9.3 per cent growth in the first half of 2022 compared to the same 2021 period, with the total units sold in June up 8.1 per cent year-on-year basis.

Al-Futtaim Automotive, which revealed the data said, SUVs continue to dominate the UAE market, making up 50.5 per cent 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 amongst its brands), said it closed out the first half of the year with 5.7 per cent increase in volume YoY and total market share of 35.4 per cent, 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 dipping in 2020 during the Covid-19 pandemic. Passenger car sales revenue is projected to reach $5.8 billion this year, after the demand came back to full throttle from August to September 2021. During that period, buyer interest even exceeded pre-Covid-19 numbers.

“New car sales are expected to increase by up to 30 per cent in 2022, as more brands are introduced to the market and production and shipments get up to speed with consumer demands.”

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

He said the UAE’s Net Zero strategy brings an opportunity for automotive manufacturers and dealerships 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 per cent of sales from January to June. Toyota saw an 11.4 per cent increase in total volume year on year and 0.5 per cent increase in market share. The growth also continues across Al-Futtaim Automotive’s brands,” said the statement.

While Volvo has increased volume by 1.6 per cent year to date Dodge and RAM have witnessed a 14.4 per cent volume increase for H1 2022 compared to H1 2021, with RAM holding the number one position in the large pickup segment increasing segment share by 18.4 per cent. The Polestar 2, the Swedish electric performance car brand that Al-Futtaim Automotive brought to the market along with the brand’s entry in February, has completely sold out of all stock reflecting global trends, said the statement.

In July, Polestar reported globally the delivery of approximately 21,200 cars in the first six months of 2022, more than doubling deliveries from 9,510 cars in the same period in 2021 – an increase of almost 125 per cent.

— issacjohn@khaleejtimes.com