Emirates vehicles market in 2017 has lost 11.3% reducing the annual lost in the Q4 when consumers have anticipated purchases, before VAT 5% introduction in January. 2018 perspectives are negative despite the strong growth of non-oil sector.
UAE’s non-oil sector sector reached a near three-year high in December thanks to healthy expansions in output and new orders. Coupled with figures from previous months, this bodes well for economic growth in Q4, as consumers and firms brought forward planned consumption before the introduction of a 5% VAT on 1 January.
The new tax is an important step towards broadening the tax base and strengthening a fiscal position which is already among the most solid in the region. On the downside, employment and wage growth remain subdued despite robust domestic activity, which could weigh on private consumption heading into 2018.
UAE vehicles market is running across the hardest crisis of last decades, following a long period of robust expansion. Indeed, in recent years sales grew from 291.000 in the 2012 to the all time record of 408.252 established in the 2015.
The demand contraction related to the oil price decline in the international market hit the country more than any other in the region. In addition, it must be considered the relevance of trading activity for vehicles registered in the Emirates and then exported (others GCCs and Africa).
This activity has been hit as well, due to low demand from Africa and others GCC countries. The effect was a huge fall in the 2016 and again in the 2017, when full year sales fell down at 276.081 (-11.2% ) despite the sales boom reported in December.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models