The UAE luxury cars market projected to grow with a notable rate during the estimated period 2020-2027, owing to its economic favouring factors, such as a decrease in the oil prices and shifting consumer preference from SUVs to Sedan cars. Luxury car players such as Ferrari, BMW, Audi, and other prominent players operating across the region records the highest sales share of luxury cars from the UAE.
Apart from it, other prominent factors that play an essential role in capturing the share of luxury cars in the UAE are the ultra-rich population and their demand for luxurious autonomous cars. As the autonomous cars involve high maintenance cost as it has to sense RADAR technology, artificial intelligence, light detection, and ranging features makes the car luxurious and comfortable for the consumers. Therefore, these factors will increase demand in the forecast period from 2020-2027.
Moreover, the growth of the UAE luxury market will trigger by the initiative taken by the government of UAE regarding the low tariff duties on imports and financial schemes and insurances for luxury cars, which will attract consumers to buy luxury cars. These schemes help the luxury cars market graph going upwards and promote the growth of luxury cars in the UAE market. Additionally, consumer preferences are changing towards hybrid cars to promote low emission carbon vehicles as many environmental associations operating across the world are tightening the emission norms and are taking the initiative for promoting electric vehicles. Based on which, major luxury car manufacturers are launching electric variants of their cars, which projected to contribute to the growth of luxury car market over the forecast period.
Product Type Overview in the UAE Luxury Cars Market
Based on Product Type of luxury cars, UAE luxury cars market into classified into a compact car, mid-size, full size, larger car, UAE luxury cars market, and super sports car. The UAE luxury car market segment captures the largest share in 2019, among other segments. It is owing to changing needs and preferences of the consumer, desire, and income level based on which luxury cars adopted by the notable population who are ultra-rich. The government of UAE offer schemes for financing and insurance of luxury cars it becomes much easier than before to buy luxury cars in the UAE for the population who are willing to afford the maintenance of luxury cars.
Price type distribution of UAE luxury market
Based on the price type distribution, the UAE luxury market comprised of an entry-level range, mid-range, and premium range. Among the segmented price type distribution of luxury cars, mid-range luxury cars capture larger share than entry-level and premium range cars. Additionally, the mid-range segment will influence by advanced technology used in luxury cars such as sensing RADAR, artificial intelligence, and self-driving vehicles to enhance the cost of the cars and thus make it luxurious and comfortable.
UAE Luxury Car Market: Competitive Landscape
Companies such as Volkswagen Group, Daimler AG, Bayerische Motoren Werke AG (BMW), Volvo Group, Tata Motor Limited, General Motors Company, Tesla Inc., Ford Motor Company, Aston Martin Lagonda Ltd, Honda Motor Co., Nissan, Mercedes-Benz, BMW, Lexus, Audi, Land Rover, Jaguar and other are key prominent players in the UAE luxury car market.