UAE: For every new car, 3 pre-owned sold; EVs in high demand

Customers still prefer an on-site visit to check the vehicle


Ashwani Kumar

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Published: Mon 30 Oct 2023, 10:32 AM

Last updated: Mon 30 Oct 2023, 4:45 PM

While the pre-owned car business has been booming in the UAE, interest in driving electric vehicles (EVs) is gaining pace among motorists, a sector expert said.

“For every new car sold in the UAE, three pre-owned vehicles are purchased. There has been strong growth in the pre-owned car market, particularly among millennial car buyers,” Abhinav Gupta, CEO of the Gulf region for Cars24, said while sharing insights from its report on trends recorded in the first six months of 2023.

“Since starting our first international hub in UAE in 2021, the pre-owned car market in the UAE has shown significant growth, which means it is also competitive and cluttered in terms of service offerings,” Gupta said in an interview.

He pointed out that there has been a steady rise in the number of female drivers interested in buying a pre-owned car.

“In the first half of 2023, the number of female buyers on the Cars24 platform rose by 15 per cent, compared with a 13 per cent rise in male buyers.”

Gupta noted that customers still prefer an on-site visit to check the vehicle.

“There is still a large segment of people who prefer to visit a physical showroom and test drive their chosen models before making the decision to purchase. Keeping this in mind, we expanded our operations in Dubai, Sharjah, and Abu Dhabi to create a strong omnichannel experience that will give our users the same level of service through our website and point of sales.”

Online searches for EVs up 60%

The UAE aims to shift to green mobility and increase the share of electric vehicles to 50 per cent of total vehicles on the roads by 2050. Gupta noted there has been a move from motorists towards electric mobility.

“There is a rising consciousness about increasing fuel prices and an awareness about the environmental impacts of electric cars, which has contributed to the spike in interest. Our insights report also revealed that online searches for electric vehicles in the first half of 2023 have soared 60 per cent on our platform compared to H2 of 2022.”

Gupta revealed that Cars24 has major plans to provide full-stack EV solutions to customers.

“These statistics showcase a huge opportunity for the pre-owned car market, and to keep up with the growing demand, Cars24 has major plans in the pipeline to develop full-stack solutions for our EV customers, from procurement to refurbishment.”

Gupta noted that Cars24 aims to invest $100 million in the GCC region over the next few years to expand its presence and become the largest tech enabler in the pre-owned car industry.

“By the end of 2023, we are expecting our UAE business operation to break even, which will be a significant milestone,” Gupta added.


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