Booming demand: Car sales hit top gear

Ease of financing for a booming population has pushed car sales up by 35 per cent making new cars a rare commodity in dealer showrooms across the city.

Car dealers in Dubai cannot keep up with demand leading to a bottleneck in deliveries, reporting an average 30 per cent spike in sales in the last six months.

"If people brought bag loads of money now, they wouldn't be able to get a car for at least three months," said Glynn Evans, salesman at Gargash Mercedes Benz showroom on Shaikh Zayed Road.

In some cases, the wait can be up to six months for some models such as the G-55 because of its popularity, he said.

The cupboard is empty on most models given the run by customers who are flocking to buy higher-end cars. In July and August, the dealer sold triple the numbers of cars compared to previous months, leading to shortage.

"We have sold out 18 of the 20 models which usually last us a year," said Evans.

Nissan dealers also report banner months and hectic sales. Zaher Sabbagh, sales manager, said "Yes, we have seen a tremendous increase in sales of up to at least 30 per cent in the last six months."

It takes a month to take delivery of the ever-popular Armada and Infinity Fx35 models, he said.

Dubai student Mohammad Al Nuaimi, 24, waited eight weeks for his 2008 Nissan Altima.

"I was on a waiting list for a long time because of the high demand for this car," he said.

Other emirates are also witnessing this trend.

The Toyota showroom in Ras Al Khaimah is also experiencing a high demand for 2008 models.

Toni Khalil, acting sales manager for Al Futtaim, said, "We have had a high increase in the demand of cars, especially the new 2008 model Land Cruiser. The most popular models are the V6 and V8."

"We believe the increase in demand could be the result of population increase in the whole of the UAE and in investment. The more investment there is in the country, the more people will spend on motors," he said.

Hyundai dealers have also reported an increase in sales.

Essam Abu Nabaa, president of Hyundai-Juma Al Majid, said, "Our growth this year reached approximately 23 per cent over the same period last year."