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FINANCIAL NEWS
UAE auto market sees sluggish recovery in Q1
15 Apr 2010
(MENAFN) UAE’s car industry has witnessed a slow recovery during the first quarter of 2010, as consumer sentiment and financial lending gradually picked up during the three month period, Gulf News reported.
Ehsan Koman, an economist at Dubai Chamber of Commerce and Industry, said that UAE’s auto sales are expected to rise by an average of 19.2 percent this year, while car ownership is expected to rise to 55.9 percent in 2010 up from 55.4 percent last year.
Koman said in a report that heavy discounting in both the premium luxury and the middle-tier auto markets, as a result of consumers delaying purchases to wait for prices to drop further, had led to an increase in aggregate demand in the first quarter of 2009. Meanwhile, car dealers have seen the first quarter fare similar to that of 2009.
On the other hand, industry experts said that the only growth seen by the dealer is in the premium cars segment. They estimated that this year wouldn’t change from the beginning of the year at 5-6 percent of growth.
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