Life & Style | Motoring
Car sales in UAE likely to go down
The rising cost of living and tense political situation in the region are expected to drive cars sales down in the UAE, a leading car dealer said yesterday.
- By Shakir Husain, Staff Reporter
- Published: 00:00 June 11, 2007
Dubai: The rising cost of living and tense political situation in the region are expected to drive cars sales down in the UAE, a leading car dealer said yesterday.
The UAE car market achieved 42 per cent growth in 2005, which was almost halved in 2006, said Michel Ayat, general manager of Nissan dealer Arabian Automobiles.
"The industry had phenomenal growth in 2005 but that is not going to be repeated," he said.
Quoting Business Monitor International (BMI) group's projections for UAE auto sales, he said this year car sales are expected to grow between 13 to 15 per cent. "But 15 per cent is still a strong growth rate," Ayat said.
Factors that will contribute to lower sales include high living costs, more use of public transport and political tensions in some countries.
"Expatriates from certain countries will be sending more money home. They will probably delay buying new cars till political situation improves at home," he said.
A large number of expats in the UAE are from countries like Lebanon, Iran and Pakistan that are dealing with contentious issues.
Measures like Dubai road toll and difficulties in getting new driving licences are also expected to reduce sales.
In 2006, the number of cars sold in the UAE was 236,515, an increase of 23 per cent over 2005.
Total sales in the first four months of this year have been about 26 per cent, but a significant portion of the vehicles sold were re-exported.
According to statistics provided by Arabian Automobiles, the sales of Japanese cars between January and April this year grew 32.3 per cent in the UAE compared with the same period last year.
Popular in Motoring
Life & Style editor's choice
-
Ten simple ways to love yourself
Just a few small changes to your day can make a big difference
-
Style story: Make waves with beachwear
Life's a beach in this summer's gorgeous new swimwear
-
Classic cars: Maserati BiTurbo
The common man's Maser is arguably the best stepping stone into the world of Italian classic cars
Multimedia
