Wednesday, Mar 02, 2011
Gulf News
Study sees increase in demand for luxury and budget vehicles
Dubai: Demand for both luxury and volume cars will remain strong in the UAE even as the development of world-class public transport infrastructure takes final shape, according to a new study by the Dubai Chamber of Commerce and Industry yesterday.
The automotive sector plays a vital role in promoting the UAEs competitiveness and makes the country stand out among competing economies in the Middle East, the report said.
The UAEs demographics, urbanisation, energy efficiency and low-cost cars are the main factors contributing to growth.
The population increase through natural growth and immigration will continue to create demand for cars, both luxury brands and budget vehicles.
Recovery
Peoples preference of living and working in urban areas is also likely to lead to greater need for automobiles, including fuel-efficient vehicles.
Al Ghandi Motors CEO Graham Turner told Gulf News he was optimistic about the auto sectors recovery in the UAE. Our motor sales from the beginning of this year have showed a difference from 2010. There was a slight improvement, he said.
Despite the remarkable development of public transport the demand for vehicles is still high. He also said fleet sales are doing better than retail. Our sales are correlated to local demand and we dont export. But since the biggest percentage of Dubai imports is re-exported to different countries, it is expected that vehicle re-exports will grow again.
By Zaher Bitar, Staff Reporter
Gulf News 2011. All rights reserved.
