The Middle East automotive industry is undergoing a rapid transformation, driven by shifting consumer preferences, technological advancements, and an evolving economic landscape. As the region embraces new automotive trends, data provides a clear roadmap for where the industry is headed.
Chinese car brands have experienced an unprecedented rise in popularity across the Middle East, fundamentally reshaping the region’s automotive landscape. The numbers speak for themselves. In 2024, Chinese vehicle listings surged by an astounding 56% on DubiCars, while non-Chinese brands declined by 5%. Jetour witnessed a staggering 881.9% growth, with MG (28.9%) and Changan also securing a growing share of the market. On Vehicle Report, an indispensable consumer information tool when it comes to buying and selling a vehicle, consumer inquiries for Chinese used cars skyrocketed by 77% between September and December 2024, proving that confidence in brands like MG, Jetour, Geely, GAC, and Changan is at an all-time high. This shift is largely fueled by affordability, improved quality, and cutting-edge features at competitive price points. As Chinese brands refine their offerings, we can expect their dominance to continue expanding.
The UAE and the broader Middle East are gradually moving toward electrification, though the pace of adoption varies across segments. The number of EV and hybrid models available in the UAE has grown by an astonishing 507% over the past five years, jumping from 85 models in 2020 to 516 in 2024, according to AutoData Middle East. PwC Middle East projects that EVs will account for over 15% of new passenger car and light commercial vehicle sales in the UAE by 2030, translating to approximately 58,000 vehicles annually. By 2035, that figure is expected to reach 25%, or around 110,500 vehicles annually. Yet, adoption barriers persist with EV listings on DubiCars increasing by just 2% in 2024, reflecting ongoing concerns about charging infrastructure, battery longevity, and high upfront costs. Hybrids, on the other hand, saw a 44% increase in listings, signalling that consumers prefer a gradual shift before fully committing to electric vehicles. While full electrification remains a long-term goal, hybrids are emerging as a crucial stepping stone in this transition. In order to accelerate EV adoption, it is vital for governments and automakers to address infrastructure gaps and affordability concerns.
As consumers become more strategic in their purchasing decisions, residual value (RV) plays a critical role in influencing choices. Hybrid vehicles lead the market with the highest RV at 79% after three years, followed closely by SUVs at 77% and sedans at 76%. Chinese EVs are proving their staying power, retaining 79% of their value after three years—outpacing non-Chinese EVs, which hold 74%. Meanwhile, luxury vehicles face steeper depreciation, with an average RV of just 66%, due to high initial costs and expensive maintenance. This data suggests a more pragmatic approach from consumers, who are prioritising longevity and resale value over pure brand prestige. For automakers, offering competitive financing options and robust warranty programs will be key to maintaining market confidence.
The Middle East’s automotive market is evolving at an unprecedented rate. With Chinese brands cementing their foothold, hybrid and electric vehicles gaining traction, and consumers placing greater emphasis on residual value, the industry is poised for dynamic growth. However, for these trends to translate into long-term success, infrastructure investments, regulatory frameworks, and consumer education must keep pace. Data-driven insights will continue to be the backbone of informed decision-making, helping manufacturers, dealerships, and policymakers navigate this transformation. One thing is clear—change is accelerating, and those who adapt will lead the way into the future of mobility.
This opinion piece is contributed by Sebastian Fuchs – Managing Director of Digital Products and Services at Auto Data Middle East, driving strategic initiatives for multi-million-dollar growth across the GCC region and North America. With a focus on customer-centric strategies and technology integration, he oversees organisational expansion and improves financial performance.
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