UAE car sales rise by 37% in H1

CAR SALES: UAE is leading the GCC region when it comes to the growth in new vehicles. (Getty Images)

The UAE automotive market continues to outperform regional peers and is one of the fastest growing markets in the world, according to the latest research by Business Monitor International.

Car sales in the UAE rose by 37 percent year-on-year in the first half of 2008, the highest growth among the markets of the GCC.

According to data from the Middle East Automobile Council (MEAC), total GCC sales were up by 26 percent, which compared to the global car sales growth of just 0.8 percent.

Premium car sales in the UAE have grown by 56 percent between 2005 and 2007 and the segment now represents 12 percent of the country’s auto market by volume and 24 percent by value.

The UAE also accounts for 40 percent of the GCC’s luxury sales, with Saudi Arabia contributing 21 percent and Kuwait 14 percent.

By 2012, car sales in the UAE should reach just under 534,000 units, a 80 percent rise over 2007 levels, the report added.

The Al Rostamani Trading Company said that Suzuki sales in the UAE were up 197 percent in the first half of the year while Volkswagen also reported strong sales growth of 69 percent, which exceeded its 42 percent growth for the Middle East as a whole.

Meanwhile, General Motors’ UAE sales grew in line with the overall market growth of 37 percent, with total sales of Chevrolet, Cadillac, GMC, Hummer and Saab to reach 11,972 units.

The BMI report said it expects price discounting in an increasingly competitive market, with the exchange rate set to determine demand, giving US manufactured vehicles an edge over European and Japanese rivals.

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