Passenger car sales are projected to see a jump of 50 percent during this year’s Ramadan season, AlgoDriven, a Dubai-based automotive data platform, said.
The platform said its proprietary data and algorithms show that over the last few years, car dealers see up to 50 percent uplift in sales, compared to their yearly average.
It said the 2024 sales forecast is set to smash the peak of 2023 Ramadan used car sales, which showed a 20 percent year-over-year increase from the previous year’s Ramadan peak.
“The increase in sales during Ramadan is both cause and effect driven. The best deals of the year are often found in Ramadan, with dealerships competing to give the best value to buyers,” Glenn Harwood, Co-founder of AlgoDriven, said in a media statement.
“Traditionally, it is also a time of generosity where consumers are more likely to make a new car purchase, highlighted by this brand-new data,” he added.
Harwood said the UAE’s automotive market has seen a flurry of recent entrants from China, such as Geely, Jetour and BYD, which has been positive news for consumers, providing more choice than ever.
With this extra inventory in showrooms, there is even more opportunity to shop around for deals, he said.
“These market forces – plus insight from our historic data – means we can expect UAE car sales to reach new heights over this year’s Ramadan,” Harwood said.
The new data follows AlgoDriven’s 2023 review – which highlighted an average depreciation of 14.8 percent for used cars during the year, up from a 2.5 percent drop in 2022.
The price fall reflected a softening in the used car market as new car inventory levels increased back to pre-pandemic levels.
AlgoDriven also said it anticipates 2023’s used car market price falls to continue through 2024, forecasting average depreciation of about 15 percent for the year.
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