Press Release

UAE Luxury Car Market to be Dominated by Sedan in the Forecast Period

UAE Luxury Car Market is being driven by factors such as growing preference for the luxury car among the buyers as the luxury cars have more features compared to the premium cars.    

According to TechSci Research report, “UAE Luxury Car Market– By Region, Competition, Forecast & Opportunities, 2018-2028F,” the UAE luxury car market is expected to grow at impressive rate during the forecast period due to the rising demand among the young peoples for the luxury and sport cars. Besides, the owner of the luxury cars can privileges such as rewards programs and benefits programs for the certain brands on the car services. 


The United Arab Emirates (UAE) is a nation of car enthusiasts, and it is not uncommon to observe luxury or sports cars on the streets. In fact, the Dubai Police operates a fleet of luxury vehicles, including Bugattis, Veyrones and Lamborghinis. The number of individuals who are able to own their desired vehicle is higher in the UAE when compared with other nations. This is because Dubai is relatively hospitable to luxury vehicles and their owners, as it offers tax-free salaries, safe roads, and easy financing. As a result, there is an abundance of luxury vehicles in Dubai and other cities of the UAE, as individuals prefer to purchase luxury cars over premium cars in order to maintain their social status.


Brands can make a big difference in the purchasing decisions of the consumer for luxury cars. The features and benefits of owning and using a particular brand will also influence the consumer's preference towards a particular brand. In this modern world, technological innovation and aesthetic design in the automobile sectors are making the automobile industry in the UAE market flourish. The stiff competition in the market means that the customers have a wide range of options to choose from. In UAE, due to low crude oil prices and high per capita income, there are plenty of luxury cars and buyers in the region. Import of vehicles from all over the world is common due to tax exemptions in this country. The customer's behavior towards buying a car is very dynamic. Changing models according to the trend is very common among the customers. Also, the used car business plays a major role in the automotive industry. At the consumer's point of purchase, brand is one of the major influencing factors in the selection of luxury cars in UAE.


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The UAE is one of the most preferred markets for luxury car making automobile companies worldwide, mainly because the Middle East has proven to be one of the most resilient regional markets for luxury automobile manufacturers in comparison to North America and Europe in terms of market share growth or maintenance. The automotive industry in UAE is highly competitive, with over 25 distributors of various brands operating in the market. In the given scenario of the automotive industry in UAE, the growth or maintenance of market share largely depends on how a company positions itself on the most important aspects to its customers.


Luxury vehicles are renowned for their advanced technology, and this extends to their safety features. These vehicles are often equipped with features such as pothole detection and automatic adaptive headlights, as well as driver-assistance systems that can help maintain the safety of the driver and passengers on the road. Additionally, their larger size and superior build quality will also enhance their safety rating in the event of an accident. Additionally, luxury vehicles, particularly vintage models, are more likely to remain in the used car market than economy cars and traditional family vehicles. Therefore, if someone is looking to purchase a vehicle with higher resale value after they are finished with it, purchasing a luxury car may be the best option. As long as the vehicle is maintained properly and serviced regularly, the value of a luxury car will be greater after five years than that of a comparable vehicle.


In the propulsion type segment, the ICE vehicle accounted for the largest market share over the electric one, as in the country the price of fuel is cheaper, so people prefer to buy ICE fuel-based car. Also, many luxuries car making companies have focused on making ICE engine-based cars and to launch in the UAE because these cars have higher demand among the buyers and the resales value of the ICE fuel-based car is higher in the UAE.


In the vehicle type segment, the sedan has the highest market share over the hatchback and SUV/MPV vehicle.


In the price segment, the mid-range has the highest market share over the other segment, as mid-range luxury car has all the same basic features and one can have the luxury car at an affordable price range.


Key market players in the UAE luxury car market include:

·         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


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“The growing demand for the premium vehicle has increased the sales of the luxury car in the UAE, the advanced technology innovative systems and features are always present in the vehicle which makes the buyers to look for the luxury cars. The demand of luxury cars is also high in the used luxury car market, people also look for the used luxury car in the country, due to this the resale value of the luxury cars are high in the country due to its high demand . As a result of increased demand of luxury car in UAE, many automotive manufacturers are investing in their research and development so that they can launch new models with the advanced features in the luxury car. In UAE luxury cars have also been imported from other countries. Due to this many luxury car companies have started to increase their distribution channel so that they can increase their sales and by which they can own higher market share in the country. All these factors act as drivers for the market which will help in growth of the UAE luxury car market in the coming years”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.  


UAE Luxury Car Market By Vehicle Type (Hatchback, Sedan, SUV/MPV), By Propulsion (ICE, Electric), By Price Segment (Entry Level, Mid-Range, Premium-Range), By Region, Competition, Forecast & Opportunities, 2028, has evaluated the future growth potential UAE Luxury Car market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities present in the UAE Luxury Car Market.



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UAE Luxury Car Market By Vehicle Type (Hatchback, Sedan, SUV/MPV), By Propulsion (ICE, Electric), By Price Segment (Entry Level, Mid-Range, Premium-Range), By Region, Competition, Forecast & Opportunities, 2028

Automotive | Nov, 2023

UAE Luxury Car Market is being driven by factors such as growing preference for the luxury car among the buyers as luxury cars have more features.

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