In conversation with Mr. Arjun Bakre, Procurement Buyer at Al Nabooda Automobiles in UAE, we have attempted to identify the trends, competitive landscape, sourcing and procurement process in UAE Used Car Market.

“The UAE's mature Used Car Market, primarily concentrated in Dubai, sees significant activity from major players sourcing cars through various channels; Al-Futtaim dominates the OEM sector, while Al-Futtaim Automall leads among Multi-Brand players.”

Q1: What is the current scenario of the UAE Used Car Market?

The UAE's mature Used Car Market is primarily concentrated in Dubai, with the majority of industry players operating in this bustling hub.

Q2: Can you provide an overview of how companies source used cars in this market?

Certainly. There are three major sources:

1. Direct customers approach original equipment manufacturers (OEMs), who refurbish and sell the cars.
2. Individual sellers may go to auction houses or online platforms, where inspectors or buyers inspect the cars. These cars get registered in the name of the Auction House or Online Platform, which then takes care of the selling, typically with an 8% margin.
3. People list their cars on classified platforms, with the car staying in the seller's name. Some platforms also assist corporates in finding potential buyers without disclosing the seller's identity, charging a commission for their services.

Q3: What is the situation of the exports market in the UAE Used Cars Market?

Used cars from the UAE are primarily exported to Sudan, Jordan, Saudi Arabia, Egypt, and various African countries.

Q4: Who are the major OEM players in the Used Car Market?

In the UAE Used Car Market, Al-Futtaim stands as the dominant force, boasting a significant 20-25% market share and the highest volume of used car sales. Following closely are key players such as Arabian Automobile, Al-Nabooda, and Al Galdhari, with AGMC, Al Habtoor, Al Ghandi, Al Tayer and Ali and Sons also contributing to the industry landscape. In addition, there are numerous other players, totaling over 25 in this dynamic market.

Q5: Who are the major Multi - Brand players in the Used Car Market?

There are approximately 150-200 multi-brand players, with Al-Futtaim Automall holding the largest market share. Other notable players include Auto Central, NXT, The Elite Cars, ALBA, Linda, and RMA Motors.

Q6: Who are the major Online Marketplace players in the Used Car Market?

The primary Online Marketplace players in the UAE Used Car Market are Cars 24, Kavaak, Carnab (online transactional businesses), and Dubizzle, Yalla Motors, Dubi Cars, Open Sooq, and Carswitch (for classifieds). Kavaak sell around 200 cars a month and Cars 24 sell more than 600 per month.

Q7: How many Auction Houses and Local Dealers operate in the Unorganized Used Car Market?

In the unorganized segment of the UAE Used Car Market, there are around 20-25 auction houses and approximately 350 local dealers.

Q8: What is the usual turnaround time for used cars in this market?

There are two methods to calculate the turnaround time in the UAE Used Car Market. The first considers the duration from the moment the car is initially procured. The second method assesses the time it takes after refurbishment until the car is ready for display in the showroom.

For the second method, we can break down the turnaround times as follows:

Cars priced below AED 50k typically require 20-25 days to be prepared for the showroom.

Cars with values exceeding AED 60k may have a turnaround time of 45-60 days.

More expensive cars, in the highest price range, may necessitate an extended timeframe of up to 90 days before they are showroom-ready.

For more insights on the market intelligence, refer to the link below: -

UAE Used Car Market