2012-02-03 07:49:37 - Recently published research from Business Monitor International, "United Arab Emirates Autos Report Q1 2012", is now available at Fast Market Research

BMI expects new car sales in the UAE to rebound significantly in 2011, despite the industry having been impacted by central bank moves earlier this year aimed at restricting the amount of car financing customers can use to buy new vehicles.

BMI's view that credit restrictions will create opportunities for vehicle financing units in the Middle East is playing out, as dealers in the UAE launch finance programmes in response to new credit regulations. The new rules state that banks cannot lend more than 80% of the vehicle's value. Coupled with that is a restriction on the amount of credit an individual can access in relation to their monthly income. Anecdotal evidence shows that vehicle sales in the UAE fell by

between 20% and 40% year-on-year (y-o-y) as soon as the new rules came into effect, as many consumers predictably brought purchases forwards to March and April when 100% financing was still available.


Full Report Details at
- www.fastmr.com/prod/326832_united_arab_emirates_autos_report_q1_ ..


However, some carmakers and dealers have since taken a pro-active approach to boosting sales with their own financing packages. There is clearly a response to the new banking regulations in some of the schemes, which cut down the monthly instalments. Under the new regulations, loan repayments should not account for more than 50% of a person's monthly income.

Toyota Motor remains the dominant player within the UAE new car sales market, with the National Sales & Marketing Manager for local dealership Al-Futtaim Motors, Andrew Squires, stating that the company has a market share of close to 41% in 2011 year-to-date. According to a report on the AMEinfo website, Squires acknowledged that the current year has been challenging, but that he was 'delighted to report that sales have now regained a steady pace' of around 15% year on year. He was hopeful that this rising sales trend would continue into 2012. Toyota boasts the most popular mid-size car in the UAE with its Corolla model, and its Land Cruiser and Prado models also lead their segments.

However, Toyota's reputation in the UAE could be compromised by the news in November 2011 that it is to recall almost 2,000 vehicles in the country as a result of problems with power steering systems. The affected models are the 2004 Toyota Avalon and Camry models, as well as the Lexus RX330 and ES300 models, according to a report in The National.

Already, other manufacturers have announced their intention to try and win market share within the UAE. In November 2011, Galadari Automobiles, the exclusive distributor of Japanese carmaker Mazda Motor in the UAE, is looking to increase its market share by 15-20% in 2012, reports Gulf News citing Galadari Automobiles' General Manager Axel Dreyer. The company aims to raise its market share by launching a new retail store in Dubai. Presently, Galadari owns seven showrooms and six service centres nationwide.

At the luxury end of the market, UK-based automaker Jaguar Land Rover's official retailer in the UAE, Al Tayer Motors, reported a 20% y-o-y increase in sales of Jaguar models in the country during the first 10 months of 2011, as well as an 11% increase in sales of Land Rover models. In particular, the importer posted a 57% increase in sales of Land Rover's LR4, and an 89% rise in sales of Jaguar's XJ in comparison to the January to October period of 2010.

Looking ahead, BMI expects steady, if unspectacular, sales growth (in volume terms) over our newlyextended forecast period to 2016. We anticipate annual car sales in the region of 475,000 CBUs in 2016.

Report Table of Contents:

Executive Summary
SWOT Analysis
Global Overview
Regional Overview
Business Environment Ratings
Macroeconomic Forecast
Industry Forecast Scenario
Competitive Landscape
Company Monitor
Company Profiles
- General Motors Company (GM)
- Nissan Motor
- Al Rostamani Trading Company (ARTC)
BMI Methodology

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