Sino vehicles eye UAE roads

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Sino vehicles eye UAE roads
China maintains a share of 11.3 per cent in automotive exports to the GCC.

Chinese vehicles are fast making inroads into the UAE markets, and challenging the dominance of Japanese and European counterparts

by

Suneeti Ahuja Kohli

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Published: Wed 1 Jun 2016, 11:10 AM

Last updated: Wed 1 Jun 2016, 4:48 PM

The UAE's automotive market is predominantly ruled by Japanese and European commercial vehicle brands, and one wouldn't expect Chinese brands to make a cut easily. However, the profile of vehicles on the roads of the UAE is changing and reflecting the growing acceptance of Chinese vehicles.
The Chinese automotive industry is the largest in the world, accounting for over 27 per cent of the global automotive production. Of the total production volume in 2015, over 3.5 million units were exported around the world.
In the GCC, China maintains a share of 11.3 per cent in automotive exports. A closer look at the industry data of the UAE shows China's share at almost 4 per cent in 2014, states a report by the International Trade Centre.
Although passenger cars are gaining a faster foothold in the UAE, buses are also among the top imports from the Sino nation as companies are venturing into the school bus segment, where European manufacturers don't have much to offer. In the run up to the Expo 2020 and increased pace of construction in the emirates, Chinese trucks too are finding a favourable spot for growth.
A convergence of demand and supply is happening in the market. Price-conscious tour operators, travel agencies, construction players and passenger and cargo transport companies are welcoming Chinese high-end tourist buses, coaches, trucks, light commercial vehicles and mini-vans into its fleet. These sectors are willing to try and accept non-Japanese and non-European products that offer better pricing and comparable service standards, and Chinese vehicles are filling in the gap successfully.
     - suneeti@khaleejtimes.com


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