Japanese used car

Khaleej Times - 05/04/2005

ABU DHABI — The automobile market in the country is burgeoning with the current volume placed at around 1.36 million vehicles with nearly 30 per cent of the new cars in the emirate of Abu Dhabi.

According to a publication of the Abu Dhabi Chamber of Commerce and Industry, that quoted the latest report of the International Monetary Fund, automobile and spare parts exports to the UAE stood at Dh15 billion in 2002. This represents a stable growth of 9.2 per cent, the biggest growth rate among the six-member GCC states that recorded a growth of 6.4 per cent. This means that the automobile and spare parts market is projected to easily exceed Dh18 billion this year.

The re-export market is also witnessing a vibrant phase of business that is now estimated at Dh295 million, with Iran and Iraq being the major destinations. The upswing in re-exports has been attributed to a number of factors such as a vibrant domestic economy, rising population figures, liberal grant of car loan facilities and the increasing number of car renting companies to cater to the hospitality and tourism industry. Nearly 22 per cent of the imported cars find their way to markets in the Middle East, Africa and the CIS states.

The UAE is also the second biggest market for Japanese cars and takes the second spot again in respect of trade in Japanese used cars. The number of licenced cars in Abu Dhabi emirate was placed at 312,833 that is 42 per cent of the total registered cars in the country, according to the Interior Ministry statistics. The high living standards, increasing levels of income and fierce competition among finance companies in providing credit facilities for purchase of cars have all contributed to the growing sales graph, with about 1.4 million cars sold throughout the country in 2003.

The signing of a partnership agreement between the Abu Dhabi government and the German automobile giant Volkswagen will unfold a new horizon in the domestic car-manufacturing industry that will boost the car market and further activate the tempo of competition, industry sources pointed out.