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

  • Industry : Automotive
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  • Published Date : NA
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Summary

Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 412 Million

CAGR (2023-2028)

2.12%

Fastest Growing Segment

SUV/MPV

Largest Market

Dubai

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 Recent Development

BMW Group is one of the leading companies in the UAE luxury car market due to its operational excellence and strong supplier network in the UAE. Additionally, the Group has been able to maintain its strategic direction and hasten the shift towards sustainable mobility. The Group has set ambitious objectives for reducing CO2 emissions by 40% per vehicle by 2030, across the entire lifecycle. To achieve this, the BMW Group has established a partnership with EGA (Emirates Global Aluminum). The BMW Group has launched its latest vehicles, such as the BMW 7 Series, using EGA's CelestiAL aluminum, which is produced using solar energy generated by the MOKTOUM Solar Park. To avoid a monolithic approach, the Group has embraced technological openness, allowing customers to choose from multiple drive train technologies based on their preferences and lifestyles.

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.


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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.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million, and CAGR for 2018-2022 and 2023E-2028F

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Propulsion

Price Segment

Region

Country Scope

Dubai, Abu Dhabi, Sharjah, Rest of UAE

Key Companies Profiled

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

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

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Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)


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
    • SUV/MPV
  • 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.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

UAE luxury car market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

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

6.2.4.1.         Dubai Region Market Share Analysis

6.2.4.2.         Sharjah Market Region Share Analysis

6.2.4.3.         Abu Dhabi Region Market Share Analysis

6.2.4.4.         Rest of UAE Region Market Share Analysis

6.2.5.     By Company Market Share Analysis (Top 5 Companies, Others – By Value, 2022)

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 Landscape

15.  UAE Economic Profile

16.  Competitive Landscape

16.1.              Company Profiles (Up to 10 Major Companies)

16.1.1.  Rolls-Royce Motor Cars Limited  

16.1.1.1.      Company Details

16.1.1.2.      Key Products Offered

16.1.1.3.      Recent Development

16.1.1.4.      Key Management Personnel

16.1.2.  BMW AG  

16.1.2.1.      Company Details

16.1.2.2.      Key Products Offered

16.1.2.3.      Recent Development

16.1.2.4.      Key Management Personnel

16.1.3.  Koenigsegg Automotive AB

16.1.3.1.      Company Details

16.1.3.2.      Key Products Offered

16.1.3.3.      Recent Development

16.1.3.4.      Key Management Personnel

16.1.4.  Automobili Lamborghini S.p.A.

16.1.4.1.      Company Details

16.1.4.2.      Key Products Offered

16.1.4.3.      Recent Development

16.1.4.4.      Key Management Personnel

16.1.5.  W Motors

16.1.5.1.      Company Details

16.1.5.2.      Key Products Offered

16.1.5.3.      Recent Development

16.1.5.4.      Key Management Personnel

16.1.6.  Daimler AG  

16.1.6.1.      Company Details

16.1.6.2.      Key Products Offered

16.1.6.3.      Recent Development

16.1.6.4.      Key Management Personnel

16.1.7.  Volkswagen AG

16.1.7.1.      Company Details

16.1.7.2.      Key Products Offered

16.1.7.3.      Recent Development

16.1.7.4.      Key Management Personnel

16.1.8.  Aston Martin Lagonda Limited

16.1.8.1.      Company Details

16.1.8.2.      Key Products Offered

16.1.8.3.      Recent Development

16.1.8.4.      Key Management Personnel

16.1.9.  Ferrari S.p.A.  

16.1.9.1.      Company Details

16.1.9.2.      Key Products Offered

16.1.9.3.      Recent Development

16.1.9.4.      Key Management Personnel

16.1.10.                Automobiles Ettore Bugatti  

16.1.10.1.    Company Details

16.1.10.2.    Key Products Offered

16.1.10.3.    Recent Development

16.1.10.4.    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 Us & Disclaimer

Figures and Tables

Frequently asked questions

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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 some of the major players operating in the UAE luxury car market.

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In UAE, most of the people are wealthy and highly paid professionals and they enjoy having the luxury cars as they perform better than economy cars, also tax-free salary, easy financing of cars, safe road condition. As the price of the used luxury cars in UAE low comparatively to the new one, due to which the demand for the luxury cars is also high in the market.

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Over the time price of the luxury cars gets depreciates by 15% to 20 %, due to which people hesitate to buy the luxury car. Also, the average age of the cars in the UAE is about 5.6 year due to which people must replace their cars, this also act as a negative point while buying the new luxury car in the country.

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ICE vehicle has the highest market share in the propulsion type segment, as fuels is cheap and easily available compared to the electric charging station. In addition, the country has multiple products available in the ICE range over electric vehicle. Due to this the sales of the ICE luxury cars are high in the country.

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Srishti Verma

Business Consultant
Press Release

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

Jul, 2023

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.

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