UAE Used Car Growth Opportunities

Description

High-standard Practice to Culminate Customer Experience and Build Reputation

The UAE's used car market experienced unprecedented growth in 2021. On the one hand, the global shortage of microchips impacted new car supply, boosting the demand for used cars, on the other hand, the recovery of market sentiment in the UAE and EXPO 2020 Dubai (postponed to 2021) boosted the Vehicle Miles Traveled (VMT) in the country. As a result, the used car market in 2021 in the UAE was a seller's market, with a major challenge being sourcing of used cars.

The increased demand has driven up the residual value. Popular models, depreciated much lesser in 2021 compared to 2019. The average price per vehicle also went up by almost 10% compared to pre-pandemic levels in 2019. Car owners in the UAE were incentivized to sell their vehicles at a good value.

With market growth, the industry has also witnessed many innovations in customer experience and business models. In general, a few market pioneers have led the way by increasing service standards and aftersales assurance to improve customer confidence in used cars.

Most sellers have adopted digitalization in car listing. Meanwhile, franchised dealers and major independent dealers have immensely taken to online payment and financing. Other value-added services, such as standard inspection and warranty service, have saved customers time for due diligence. In general, the process and time spent on purchasing a used car in the UAE have shortened, and the ease of making a purchase has improved.

In the post-pandemic era, the UAE's used market is expected to grow at a CAGR of 8.3% from 2021 to 2025. More than 1 million used cars are expected to be sold by 2025, driven by the competitive growth of franchised dealer Certified Pre-owned (CPO) and organized independent dealers.

Product Code: PC9F-44

The Strategic Imperative

Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the UAE Used Car Industry
Growth Opportunities Fuel the Growth Pipeline Engine™

Growth Opportunity Analysis

Scope of Analysis
Segmentation
Key Competitors
Key Growth Metrics
Growth Drivers
Growth Restraints
Forecast Assumptions
Revenue and Average Price Forecast
Revenue Forecast by Channel
Volume Forecast
Volume Forecast by Channel
Percent of Sales Volume by Channel
Percent of Sales Volume by Vehicle Type
Revenue and Volume Forecast Analysis
Revenue and Volume Forecast Analysis by Channel
Pricing Trends and Forecast Analysis
Competitive Environment
Revenue Share
Revenue Share Analysis

UAE Used Car Industry Overview

Macroeconomic Indicators
Macroeconomic Indicators-Demographic Highlights
Used Car Market Dynamics
Used Car Market Dynamics (continued)
Used Car eRetailing Trends
Recent Fundraising and Engagements by Major Participants
Used Car Value Proposition Analysis
Used Car Value Proposition Analysis (continued)
Used Car Value Proposition Analysis (continued)
Percent of Sales Volume by Vehicle Age
Factors Impacting Residual Value (RV) of Brands in the UAE
Distribution Structure
Distribution Structure Analysis
Distribution Structure-Franchised Dealers
Distribution Analysis-Franchised Dealers
Distribution Analysis-Franchised Dealers (continued)
Benefits of Certified Pre-owned Cars for OEMs and Dealers
Certified Pre-owned Program Profiles-Top 4 Volume OEMs*
Certified Pre-owned Program Profiles-Top 5 Premium OEMs*
Distribution Structure-Independent Dealers
Distribution Structure Analysis-Independent Dealers
Distribution Structure Analysis-Independent Dealers (continued)
Distribution Structure-C2C
Distribution Structure Analysis-C2C
Distribution Structure Analysis-C2C (continued)

Key Used Car Segment Analysis-Clusters Analysis

Key Used Car Clusters-Al Quoz
Key Used Car Clusters-Al Aweer
Key Used Car Clusters-Souq Al Haraj

Key Used Car Segment Analysis-eRetailing in Used Cars

The Online Used Car Landscape in UAE
Franchised Dealer CPO Online Presence Analysis-Volume Brands
Franchised Dealer CPO Online Presence Analysis-Premium Brands
Non-franchised Dealer Online Used Car Platforms
Case Study-Online Marketplace: YallaMotor
Case Study-Online Independent Dealer: Cars24

Key Used Car Segment Analysis-Warranty Practice in Used Car

The Used Car Warranty Practice in UAE
The Landscape of Warranty Providers in the UAE

Growth Opportunity Analysis, Franchised Dealer CPO

Key Growth Metrics
Revenue Forecast
Volume Forecast
Forecast Analysis
Forecast Analysis (continued)

Growth Opportunity Analysis, Independent Dealers

Key Growth Metrics
Revenue Forecast
Volume Forecast
Forecast Analysis

Growth Opportunity Analysis, Customer to Customer

Key Growth Metrics
Revenue Forecast
Volume Forecast
Forecast Analysis

Growth Opportunity Analysis, Used Car Export

Key Growth Metrics
Revenue Forecast
Volume Forecast
Forecast Analysis

Growth Opportunity Universe

Growth Opportunity 1-Online Transactional Business Model for a Seamless Customer Experience
Growth Opportunity 1-Online Transactional Business Model for a Seamless Customer Experience (continued)
Growth Opportunity 2-Refurbishment Service for Meeting Used Car Demand
Growth Opportunity 2-Refurbishment Service for Meeting Used Car Demand (continued)
Growth Opportunity 3-Franchised Dealer CPO Program for Providing High Quality Used Cars
Growth Opportunity 3-Franchised Dealer CPO Program for Providing High Quality Used Cars (continued)
Growth Opportunity 4-Used Cars for Providing Mobility as a Service
Growth Opportunity 4-Used Cars for Providing Mobility as a Service (continued)

Next Steps

Your Next Steps
Why Frost, Why Now?
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
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