Automotive Market in Dubai, UAE Essay Example | Topics and Well Written Essays - 250 words

Automotive Market in Dubai, UAE - Essay Example Due to the availability of car parts accessories, Out of 4million passenger vehicles in the GCC, UAE has 1.4million in 2008; Total imports in automotive sector in UAE totaled 16.9 billion. In distribution of trade the country had 68% vehicles and 24% auto spares imports in the same year. UAE market mainly constitutes over 20% of the GCC total production. The major suppliers in the country are Toyota, Nissan, Honda, Mercedes, BMW and ford. In 2008 the automotive sector recorded sales of 128,000 Toyota units however in 2009; Nissan showed an increased performance with 74,000 units sold. As seen from the table, passenger car segment recorded the highest car sales in UAE and contributed more than 70% of the total vehicles sold from 2005 to 2008. Toyota is the leading market brand in UAE, followed by Nissan. On the commercial industry, Daimler a Germany company is the highest ranking automotive firm. AFMC Company which sells BMW, MINI and Alphina vehicle brands leads in automotive sales at 20%. The increased sales from year to year are due to the open and highly competitive market. With no official data exists on the overall automotive sales sector, analyst expect sales of cars in UAE to rise up to 20% from 2008. The number of family vehicles in Dubai has increased by 50% over the past two years. This is attributed due to the increase in residents as well as increase in entry of new automotive companies. As from 2006 licensed drivers in the country increased by 16% from 581,179 to 676,660 in 2009. Most of the automotive customers in UAE own vehicles through leasing as it is difficult for them to secure loans, with most them leasing luxury cars over other different cars like trucks. Due to the increasing technology in Engineering and infrastructure, UAE has recorded the lowest number of accidents in the Gulf region (Jacobs G 2000). With increased level of completion in the country, UAE will continue to be