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UAE Luxury Car Market Competition Forecast & Opportunities, 2028

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  • 77 Pages
  • October 2023
  • Region: United Arab Emirates
  • TechSci Research
  • ID: 5597373
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Changing Consumer Preferences from Sedans to SUVs and the Rise in the Per Capita Income of Consumers are the Primary Driving Factors for the UAE Luxury Car Market.

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The UAE luxury car market is expected to grow at an impressive rate during the forecast period. Generally, vehicles manufactured by premium automakers such as Jaguar, BMW, and Mercedes-Benz are classified as luxury vehicles, while some manufacturers offer premium models that fall into this category. However, there are certain characteristics that almost all luxury vehicles share. Generally, luxury cars feature high-quality components, such as premium interiors and comfort features such as heated seats, as well as a smooth, powerful engine tuned to deliver exceptional performance. Additionally, some luxury vehicles feature handmade components, both on the interior and under the hood, and are often equipped with premium technology features, such as large-screen infotainment systems or high-quality audio systems. As a result of these factors, luxury cars are more popular among the rice class people as they prefer to buy luxury cars to maintain their social status in society.

UAE Luxury Car Market Overview

The UAE luxury car market is divided among the different segments in the report which is vehicle type that consist of hatchback, sedan, and SUV/MPV cars. In this segment, sedans accounted for the largest market share followed by the SUV/MPV cars.

Based on propulsion, UAE luxury car market is split into ICE and electric. In UAE the price of the fuels is cheap compared to the other alternative fuels due to which the sales of ICE luxury cars are at a higher end compared to the electric & hybrid one. However, The demand for the electric luxury cars is predicted to surge in the coming years due to rising concern for environment. In addition, the battery range of the electric luxury cars are higher which can go a long distance on a single charge.

UAE Luxury Car Market Drivers

There are several reasons due to which luxury cars are becoming more popular in the UAE. Luxury cars show the status of a person, are more famous among the people due to their comfortability and give the better experience over the other normal cars. Also, certain brands offer assistance services with benefits programs and rewards programs, this means that that person can get experience of VIP benefits. In UAE people are also looking for used luxury cars as they are more affordable than new cars due to the high price of new cars. Secondly, as UAE is a developed economy, the number of high-net-worth individuals is rising due to which the demand for luxury cars is also expanding. The wide variety of luxury cars are also available in the luxury car showrooms, especially in Dubai and Abu Dhabi. As a result, consumers explore and compare different models with prices at the same time. Luxury cars can be bought through online marketplaces or classifieds platforms. The UAE’s well maintained road infrastructure and stringent vehicle inspection regulations make luxury cars more reliable and safer to drive.

The increasing disposable income of consumers has resulted in an increase in the demand for luxury cars in the country. As disposable income increases, individuals have the financial resources to invest in higher-end items, including luxury cars. This is due to the perceived need for status, luxury, and superior amenities that luxury cars provide. As discretionary income increases, individuals can cover the higher up-front, maintenance, and insurance costs associated with luxury vehicles. Furthermore, the various financing options available to consumers make it easier for them to purchase luxury cars.

UAE Luxury Car Market Challenges

Luxury vehicles typically come with higher maintenance costs due to the presence of premium engines that necessitate high maintenance, as well as more intricate powertrains. Ownership costs for items such as oil changes are likely to be higher due to the use of expensive oil, vehicle specific components among others. Consequently, maintenance is an important factor to consider while determining a luxury car's true cost. Additionally, luxury cars typically have more powerful engines and transmissions, resulting in lower fuel efficiency than a comparable small economy car's powertrain. Luxury vehicles are also typically equipped with lower gear ratios, which can result in more gas usage per mile.

Many of the sought-after luxury vehicles, including Jaguar and Bentley, are imported. Therefore, repair cost is high resulting in high overall ownership cost of the vehicle. The higher the value of a vehicle, the higher the monthly premiums will be. Insurance companies base their premiums on a variety of factors, such as the vehicle's value. If a luxury vehicle is very expensive, then it is likely that the owner will have to pay more each month for the insurance.

UAE Luxury Car Market Technical Advancements

Luxury car buyers in the UAE are readily opting for electric and hybrid luxury models to meet their needs. This shift is due to the growing awareness of sustainability and environmental consciousness among consumers, as well as the increasing demand for eco-friendly options backed by government incentives and tax exemptions. This trend is further supported by the emergence of charging infrastructure, which has enabled luxury car manufacturers to offer a range of electric and hybrid models, combining luxury features with a more environmentally friendly driving experience. This shift in consumer preferences is in line with the UAE's ambition to become a sustainable and smart city and reflects the growing desire of affluent consumers to combine luxury and environmental responsibility.

Luxury cars are highly preferred by consumers in the UAE due to their status and fame. Ownership of a luxury car is seen as a symbol of wealth, success, and social status, which is deeply rooted in the culture of the UAE. Furthermore, luxury cars are renowned for their superior performance, cutting-edge technology, and opulent interiors, which meet the consumer's need for comfort and ease. The well-developed infrastructure of the UAE, as well as its extensive road network, further increases the attractiveness of luxury cars among the consumers. The presence of a wide range of expatriate populations with high disposable income further increases the demand for luxurious cars, as they seek to live a luxurious life and experience premium automotive brands.

Market Segmentation

UAE luxury car market is segmented based on vehicle type, propulsion, price segment, region, and competitional landscape. Based on vehicle type, the market is further fragmented into Hatchback, Sedan, MPV/SUV. Based on propulsion, the market is further divided into ICE and Electric. Based on price segment, the market is divided into Entry-Level, Mid-Range, Premium Range. On the region basis the market is further divided into Dubai, Abu Dhabi, Sharjah, Rest of UAE.

Company Profiles

Rolls-Royce Motor Cars Limited, BMW AG, Koenigsegg Automotive AB, Automobili Lamborghini S.p.A., W Motors, Daimler AG, Volkswagen AG, Aston Martin Lagonda Limited, Ferrari S.p.A., Automobiles Ettore Bugatti, are among the major market players in the UAE Luxury Car Market.

Report Scope:

In this report, the UAE Luxury Car Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

UAE Luxury Car Market, By Vehicle Type:

  • Hatchback
  • Sedan

UAE Luxury Car Market, By Propulsion:

  • ICE
  • Electric

UAE Luxury Car Market, By Price Segment:

  • Entry Level
  • Mid-Range
  • Premium-Range

UAE Luxury Car Market, By Region:

  • Dubai
  • Abu Dhabi
  • Sharjah
  • Rest of UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the UAE Luxury Car Market.

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With the given market data, the publisher offers customizations according to a company’s specific needs.

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Table of Contents

1. Introduction
1.1. Product Overview
1.2. Key Highlights of the Report
1.3. Market Coverage
1.4. Market Segments Covered
1.5. Research Tenure Considered
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Key Industry Partners
2.4. Major Association and Secondary Sources
2.5. Forecasting Methodology
2.6. Data Triangulation & Validation
2.7. Assumptions and Limitations
3. Executive Summary
3.1. Market Overview
3.2. Market Forecast
3.3. Key Regions
3.4. Key Segments
4. Impact of COVID-19 on UAE Luxury Car Market
5. Voice of Customer Analysis
5.1. Factors Influencing Purchase Decision
5.2. Brand Awareness
5.3. Brand Satisfaction Level
6. UAE Luxury Car Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value & Volume
6.2. Market Share & Forecast
6.2.1. By Vehicle Type Market Share Analysis (Hatchback, Sedan, SUV/MPV))
6.2.2. By Propulsion Market Share Analysis (ICE, Electric)
6.2.3. By Price Segment Market Share Analysis (Entry Level, Mid-Range, and Premium-Range)
6.2.4. By Regional Market Share Analysis Dubai Region Market Share Analysis Sharjah Market Region Share Analysis Abu Dhabi Region Market Share Analysis Rest of UAE Region Market Share Analysis
6.2.5. By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2023)
6.3. UAE Luxury Car Market Mapping & Opportunity Assessment
6.3.1. By Vehicle Type Market Mapping & Opportunity Assessment
6.3.2. By Propulsion Market Mapping & Opportunity Assessment
6.3.3. By Price Segment Market Mapping & Opportunity Assessment
6.3.4. By Regional Market Mapping & Opportunity Assessment
7. UAE Luxury Hatchback Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value & Volume
7.2. Market Share & Forecast
7.2.1. By Propulsion Type Market Share Analysis
7.2.2. By Price Segment Market Share Analysis
8. UAE Luxury Sedan Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value & Volume
8.2. Market Share & Forecast
8.2.1. By Propulsion Market Share Analysis
8.2.2. By Price Segment Market Share Analysis
9. UAE Luxury SUV/MPV Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value & Volume
9.2. Market Share & Forecast
9.2.1. By Propulsion Market Share Analysis
9.2.2. By Price Segment Market Share Analysis
10. Market Dynamics
10.1. Market Drivers
10.2. Market Challenges
11. Market Trends & Developments
12. Porter’s Five Forces Model
12.1. Competitive Rivalry
12.2. Bargaining Power of Buyers
12.3. Bargaining Power of Suppliers
12.4. Threat of New Entrants
12.5. Threat of Substitutes
13. SWOT Analysis
13.1. Strength
13.2. Weakness
13.3. Opportunities
13.4. Threat
14. Policy & Regulatory Landscape15. UAE Economic Profile
16. Competitive Landscape
16.1. Company Profiles (Up to 10 Major Companies)
16.1.1. Rolls-Royce Motor Cars Limited Company Details Key Products Offered Recent Development Key Management Personnel
16.1.2. BMW AG Company Details Key Products Offered Recent Development Key Management Personnel
16.1.3. Koenigsegg Automotive AB Company Details Key Products Offered Recent Development Key Management Personnel
16.1.4. Automobili Lamborghini S.p.A. Company Details Key Products Offered Recent Development Key Management Personnel
16.1.5. W Motors Company Details Key Products Offered Recent Development Key Management Personnel
16.1.6. Daimler AG Company Details Key Products Offered Recent Development Key Management Personnel
16.1.7. Volkswagen AG Company Details Key Products Offered Recent Development Key Management Personnel
16.1.8. Aston Martin Lagonda Limited Company Details Key Products Offered Recent Development Key Management Personnel
16.1.9. Ferrari S.p.A. Company Details Key Products Offered Recent Development Key Management Personnel
16.1.10. Automobiles Ettore Bugatti Company Details Key Products Offered Recent Development Key Management Personnel
17. Strategic Recommendations/Action Plan
17.1. Key Focus Areas
17.1.1. Target Vehicle Type
17.1.2. Target Region
18. About the Publisher & Disclaimer
(Note: The companies list can be customized based on the client requirements.)

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Rolls-Royce Motor Cars Limited
  • BMW AG
  • Koenigsegg Automotive AB
  • Automobili Lamborghini S.p.A.
  • W Motors
  • Daimler AG
  • Volkswagen AG
  • Aston Martin Lagonda Limited
  • Ferrari S.p.A.
  • Automobiles Ettore Bugatti

Table Information