New car sales have dropped by more than 50%, according to the managing prtner of Rafid Automotive Solutions.
However, the market for used car sales and services has seen a steady uptick over the last few years.
“For some it is a blessing, for some it is a curse. If you are on the new car sales side of it, you’re suffering. The market is suffering a 50 to 60% deficit in comparison to the last few years on new car sales," said Oweis Zahran.
He added, “That being said, the guys on the other side of it that do spare parts and maintenance for used car, business increased 50 – 60 percent.”
Since 2016, the number of end users buying new cars across the UAE and wider GCC has seen a rapid decline. Customers have been keeping their cars for longer periods, as a result of which auto re-manufacturing, servicing, and spare-part industries have been getting a lot of business.
“Because end users are no longer buying new cars because they are holding on to their cars longer, which means you are going to spend more money on spare parts and service on renewal, on registration,” he said.
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