UAE is one of the largest automotive industries in the world. The automotive market plays a crucial role in the growth of the UAE economy. In recent years, the automotive market has significantly made an impact on the economy of the region by the introduction of electric vehicles. Also, It is projected to increase the growth to 10% by 2030.
Hence, the primary components that will substantially boost the automotive industry of the state from 2023 to 2030 will not only transform the automobile industry but will be a game changer in the UAE economy.
New & Advanced Technologies
Apart from traditional automobiles, the field is transforming to electric vehicles and the demand for electric and hybrid cars is making a boost in the growth of UAE automotive industry. The demand for electric vehicles is increasing rapidly due to fuel cost and climate changes. Therefore, UAE’s goal is to focus on electric vehicles and developing EV stations in the upcoming years to overcome the fuel deprivation in the market.
Aftermarket Parts & Services
In the ever evolving world of new technologies, consumers demand aftermarket parts and accessories for their vehicles to stay at the forefront of technology. They desire to upgrade their vehicle by integrating advanced vehicle parts such as air conditioning, enhanced engine oil, advanced locks and batteries, tires and music system. By the growing demand of consumers for modification of vehicles, there will be an ultimate increase in the distribution and manufacturing investments.
Digital Ecosystem
Where everything is digitalized, the online marketplace for automobile aftermarket parts and accessories is a great initiative for smooth trade. Apps for online workshops and markets of automobile parts and services are a great relief to consumers. They can avail a variety of vehicle services and advanced parts to give their vehicle a makeover at the comfort of their space.
UAE’s Own Future Production
The UAE automotive industry is dependent on the imports of the automotive vehicles, parts and accessories from the international manufacturing brands. Japan has good trade relations with the UAE in terms of the automotive industry. American and Korean brands coming next including Toyota, Nissan, Kia, Hyundai and Mitsubishi automobiles traded in UAE. However, in the coming years, UAE is set to develop homegrown manufacturing brands. It aims to become a leading automotive manufacturer in the industry and create revenues and logistics promising growth internationally.
For the sustainability and continuous growth in the automotive industry, producing high end vehicles and products with cost effective elements brings major challenges and opportunities. Thus, the UAE is set to become a leading manufacturing automotive industry that will expand local demands and increase exports of the region. It will also improve trading and mobility by reducing congestion and encouraging high end roads for the transportation means.
