AlgoDriven – the leading, Dubai-based automotive data platform – revealed new data on UAE car sales, forecasting a huge increase during Ramadan this year.
AlgoDriven’s proprietary data and algorithms show that over the last few years, car dealers see up to a 50% uplift in sales, compared to their yearly average.
2024 car sales forecast in UAE
The 2024 sales forecast is set to smash the peak of 2023 Ramadan used car sales – which showed a 20% year over year increase from the previous year’s Ramadan peak. This strong outlook gives testament to the scale of the momentum of the UAE car market, anticipated by AlgoDriven for this year.
Glenn Harwood, Co-founder of AlgoDriven, said: “The increase in sales during Ramadan is both cause and effect driven. The best deals of the year are often found in Ramadan, with dealerships competing to give the best value to buyers. Traditionally, it is also a time of generosity where consumers are more likely to make a new car purchase, highlighted by this brand-new data.
“The UAE’s automotive market has seen a flurry of recent entrants from China, such as Geely, Jetour and BYD, which has been positive news for consumers, providing more choice than ever. With this extra inventory in showrooms, there is even more opportunity to shop around for deals.
“These market forces – plus insight from our historic data – means we can expect UAE car sales to reach new heights over this year’s Ramadan.”
The new data follows AlgoDriven’s 2023 review – which highlighted an average depreciation of 14.8% for used cars during the year, up from a 2.5% drop in 2022. The significant price fall reflected a softening in the used car market as new car inventory levels increased back to pre-pandemic levels.
AlgoDriven anticipates 2023’s used car market price falls to continue through 2024 – forecasting average depreciation of c. 15%+ for the year.
tanvir@dubainewsweek.com
