Market Trends of Middle-East and Africa Used Car Industry
This section covers the major market trends shaping the MEA Used Car Market according to our research experts:
Shift towards Unorganized Vendor to Elevate Used Cars Sales In Middle-East and Africa
In late 2016, the Middle-East and African market for used cars was dominated by organized vendors providing all segment cars for the consumer. Consumers in these regions were deeply attracted to these used cars owing to an increase in their purchasing capabilities and a hike in their average disposable income during recent times. Yet, the organized sector of the used car has been completely consolidated owing to only a few retailers and distributors selling the vehicles of all segments on a larger scale.
The majority of the Middle-East and Africa used market is dominated by unorganized players who are operated and function on a very small scale in different provinces. This makes challenges for consumers during the aftermarket services and component supplies.
Hence, after 2016 there has been a steep rise in the shift towards unorganized players from organized players. Small used car selling companies across provinces has made strategic alliances with the key used car suppliers to sell their vehicles on a larger scale. This has made buying and selling much easy for consumers and makes the aftermarket services more reliable and seamless.
The United Arab Emirates to Play a Significant Role in the Market
Among all the regions, the United Arab Emirates has been identified as the growth enabler for Middle-East and Africa used car market owing to the widespread consumer group for used cars in the region. Likewise, Iran, Kuwait, and Turkey are the next countries keeping pace with the market with the United Arab Emirates. The Middle East's second-hand vehicle spare components and the fleet market have grown into a multibillion-dollar sector with more than 100 MSME businesses distributed across the regions.
In UAE, the cars lose their true value after the five-year purchase. Now, based on the condition and fitness of the vehicle, based on electronics tests, tire conditions, and engine health, cars are sent for SDA (Secure Diagnostic Test), which will further decide the sale of the car. This helps the consumer earn trust in the condition and health of the car.
In addition, the UAE is one of the most expensive countries in the Middle East. People are seen generally selling their used cars after 3-4 years owing to changes with the new fleet. This gives an opportunity to all class people to afford a second-hand car in UAE based on economical rates with SDA approved.
Hence, considering all the aforementioned factors, United Arab Emirates is projected to lead at the forefront of the Middle-East and Africa used car market.
