The move to electric mobility is gathering pace among UAE motorists according to a new report from CARS24, which showed online searches for electric vehicles in the first half of 2023 have soared 60% compared with H2 of 2022.
The CARS24 Used Car Market Insights H1 2023 Report shows that electric vehicles (EVs) currently make up just over 1% of the UAE car market, but the switch to electric is clearly becoming a popular option with car buyers with the rapid rise in searches.
The movement aligns with the UAE’s drive towards electric mobility. Dubai recently announced plans to grow its electric charging station network by 170% by 2025, from the current 370 to more than 1,000. A report by Arthur D Little ranks the UAE 8th on the global readiness scale for electric mobility, while the improving infrastructure and rising fuel prices have contributed to a rise in the number of drivers considering purchasing an EV.
“Increasing fuel prices and awareness about environmental impact have amped up the demand for electric cars, with sales expected to reach 15.07k vehicles in 2027. This growth coupled with the UAE’s vision towards a sustainable future with low carbon footprint has seen a rise in EV supportive infrastructure in the country,” said Abhinav Gupta, Gulf CEO at CARS24.
“EV demand is expected to grow 30% annually until 2028. Keeping that in mind, CARS24 has plans in the pipeline to provide full stack EV solutions to our customers, from procurement to refurbishment. With this market constantly evolving, our aim is to develop in-house expertise through our market analysis that will help us cater to the growing demands and hold a significant position in buying, selling, and servicing electric cars.”
Used Car Market “Going from Strength to Strength”
Meanwhile, the CARS24 H1 report also underlines the strength of the UAE used car market and increasing popularity of pre-owned vehicles. According to the report, for every new car sold in the UAE, three pre-owned vehicles are purchased. Additionally, UAE’s increasing population, which is now around 10.2 million people, has increased demand for vehicles.
Subsequently, there has also been strong growth in the pre-owned car market, particularly among millennial car buyers (aged 25-44). Buyers within this segment have increased 20% in the first half of H1 compared with the second half of 2022.
There is a rising awareness among young consumers about the associated costs of owning a new car, with budget and trust in the auto retailer among key considerations when looking at pre-owned cars.
“The UAE is one of the most dominant markets and the country’s pre-owned car category is expected to surpass a net valuation of USD 28.98 billion by the end of 2027. This segment is competitive but cluttered and we assessed that there was a big gap in the region for a brand that operated as one-stop shop for customers. With trust, service and quality being imperative, we created our ethos around these crucial drivers to elevate the entire journey of the ownership,” added Gupta.
More Women Drivers See “Value in Pre-Owned Cars”
The CARS24 report also revealed a rise in the number of female drivers interested in buying a pre-owned car. In the first half of 2023, the number of female buyers on the CARS24 platform rose by 15%, compared with a 13% rise in male buyers.
Toyota and Nissan remain the most popular brands for car buyers with the Toyota Yaris the most favoured model purchased followed by Nissan Patrol and Nissan Sunny.
Concluding the report’s findings, Gupta, added: “It is encouraging to see the growth in the industry in the UAE. We have seen a shift in sentiment when it comes to buying used cars among consumers as they are now seeing the value of purchasing a pre-owned vehicle without compromising on quality. As a data driven business, we truly believe that to stay ahead of competitors, it is imperative to build trust, offer impeccable service and quality to not only understand consumer needs but to improve the overall ownership journey of the buyer.”
