UAE auto industry activity hit about 665,000 passenger cars in 2025, a clear jump from earlier years and a sign that demand is reshaping the market faster than many expected. At the same time, the mix of models and the volumes of commercial vehicles continue to move in different directions, creating a tension that shows up in the month by month and segment by segment figures. Here’s the breakdown behind those shifts, so you can see what actually changed and when.
Key Takeaways
- UAE EV registrations grew 385% YoY to 2,400 units in 2022.
- UAE auto industry employed 250,000 direct and indirect workers in 2022.
- UAE vehicle production capacity at major plants reached 120,000 units annually in 2023.
- In 2022, the UAE automotive market generated total revenues of approximately AED 45.7 billion, reflecting a compound annual growth rate (CAGR) of 6.2% from 2018 to 2022.
- UAE new passenger vehicle registrations totaled 289,000 units in 2023, a record high.
UAE auto sales are rising steadily, signaling growing consumer confidence and a strengthening automotive industry.
Related reading
01 · Category
Electric Vehicles & Sustainability24 stats
01
UAE EV registrations grew 385% YoY to 2,400 units in 2022.
02
Tesla Model 3 was top EV with 850 registrations in UAE in 2023.
03
UAE aims for 50% EV sales by 2050, with 10,000 public chargers by 2030.
04
Dubai installed 1,200 EV charging stations by end-2023, covering 95% of demand.
05
Abu Dhabi EV adoption rate reached 1.8% of total registrations in 2023.
06
MG ZS EV sold 450 units in UAE in 2023, leading Chinese EVs.
07
UAE hybrid vehicle registrations hit 15,200 in 2022, up 45% YoY.
08
Government incentives reduced EV import duties to 0% in UAE from 2019.
09
42 EV models available in UAE market in 2023, double from 2021.
10
UAE EV market projected to grow at 48% CAGR to 2030, reaching 100,000 units/year.
11
DEWA provided 650 EV chargers in Dubai by 2023, with 20 MW solar integration.
12
Nissan Leaf registrations totaled 1,100 cumulatively in UAE by 2023.
13
UAE fleet electrification targets 3,000 EVs for government use by 2025.
14
Porsche Taycan EV sales in UAE reached 320 units in 2023.
15
EV battery assembly line in Masdar City produces 5,000 packs/year.
16
1,800 BYD EVs registered in UAE by 2023.
17
UAE Green Agenda 2030 targets 50% clean energy for EV charging.
18
Polestar 2 sales hit 250 units in UAE 2023 launch year.
19
Cumulative EV sales in UAE exceeded 10,000 by end-2023.
20
Fast chargers (150kW+) number grew to 450 in UAE 2023.
21
Toyota hybrids led with 9,500 registrations in 2023 UAE.
22
Zero-emission vehicle mandate starts 2026 at 2% of sales.
23
Audi e-tron sales 420 units in UAE 2023.
24
Solar-powered EV stations reached 150 in Dubai 2023.
Interpretation
Electric Vehicles & Sustainability Interpretation
While Tesla is clearly winning the race for now, the UAE's ambitious charging infrastructure and aggressive policies are laying down a serious, sun-powered welcome mat for everyone else to finally catch up.
02 · Category
Employment & Economic Impact20 stats
01
UAE auto industry employed 250,000 direct and indirect workers in 2022.
02
Automotive sector contributed AED 32 billion to UAE GDP in 2023, or 2.3%.
03
45,000 jobs created in UAE auto manufacturing since 2018.
04
Dubai auto retail employed 35,000 people in 2022, 12% growth.
05
FDI in UAE auto sector generated 18,000 jobs in 2023 alone.
06
Aftermarket services employ 60,000 in UAE, contributing AED 10B revenue.
07
Emiratisation in auto sector reached 8.5% with 12,000 UAE nationals employed.
08
Auto logistics and transport added 40,000 jobs in UAE in 2022.
09
Dealership networks employ 25,000 across 7 emirates in 2023.
10
R&D and engineering roles in UAE auto grew to 5,200 in 2023.
11
SME contribution to auto employment is 30%, or 75,000 jobs.
12
Training programs upskilled 10,000 workers in EV tech in UAE 2023.
13
Abu Dhabi auto cluster employs 28,000 with AED 5B wages.
14
Tax revenue from auto sales reached AED 4.5 billion in 2022.
15
Auto sector training academies graduated 4,500 technicians in 2022.
16
Wages in UAE auto manufacturing averaged AED 15,000/month in 2023.
17
12% YoY job growth in UAE auto retail sector 2023.
18
Women employment in auto reached 15% or 37,500 in 2023.
19
Export revenues from auto industry hit AED 6.5B in 2022.
20
8,200 skilled welders employed in UAE auto plants 2023.
Interpretation
Employment & Economic Impact Interpretation
The UAE's auto industry is not just a well-oiled machine; it's a surprisingly expansive economic engine, revving up everything from high-paying manufacturing jobs and a thriving aftermarket to significant female participation and a steady injection of skilled Emirati talent, all while quietly contributing billions to the GDP and tax coffers.
03 · Category
Manufacturing & Production27 stats
01
UAE vehicle production capacity at major plants reached 120,000 units annually in 2023.
02
Al Ghurair Automotive manufactured 45,000 GAC vehicles in UAE in 2022.
03
Struqton (Hyundai) assembly plant in Dubai produced 18,000 units in 2023.
04
UAE auto parts local production value hit AED 2.5 billion in 2022, up 22%.
05
Six major vehicle assembly plants operate in UAE with combined capacity of 250,000 cars/year.
06
Spartan Armoured produced 1,200 luxury armored vehicles in UAE in 2023.
07
UAE's first EV manufacturing plant by Edge Group aims for 10,000 units/year by 2025.
08
Local content in UAE auto manufacturing rose to 45% in 2023 from 32% in 2020.
09
Assembly of 32,000 Toyota Land Cruisers done in UAE plants in 2022.
10
UAE exported 28,500 CKD assembled vehicles to GCC countries in 2023.
11
Investment in UAE auto manufacturing FDI reached AED 4.2 billion in 2022.
12
15 auto component factories in UAE produced 500,000 parts in 2023.
13
Ras Al Khaimah free zone hosts 8 auto assembly lines with 50,000 unit capacity.
14
UAE battery manufacturing for autos started with 2 GWh capacity in 2023.
15
Total auto R&D spend in UAE reached AED 350 million in 2022.
16
75% of UAE assembled vehicles use locally sourced steel components.
17
New Sharjah auto industrial city produced 12,000 vehicles in first year 2023.
18
In 2023, UAE produced 55,000 CKD vehicles locally.
19
ENOC supplies 70% of fuel to UAE auto manufacturing plants.
20
UAE aims for 100,000 vehicle production capacity by 2030.
21
20 new auto suppliers established in Jebel Ali Free Zone 2023.
22
Local tire production reached 1.2 million units for autos in 2022.
23
Ajman industrial area hosts 12 auto assembly firms.
24
UAE exported auto parts worth AED 1.8 billion in 2023.
25
Robotics integration in UAE auto plants up 40% in 2023.
26
65% of bus chassis assembled locally in UAE for public transport.
27
Investment in Industry 4.0 for auto reached AED 1.2B in 2022.
Interpretation
Manufacturing & Production Interpretation
While the UAE's auto industry still imports much of its ambition, the machinery of its homegrown production is undeniably revving up, as evidenced by soaring local content, surging parts exports, and a strategic shift from basic assembly towards electric vehicles, armored luxury, and high-tech manufacturing.
More related reading
04 · Category
Market Size & Growth15 stats
01
In 2022, the UAE automotive market generated total revenues of approximately AED 45.7 billion, reflecting a compound annual growth rate (CAGR) of 6.2% from 2018 to 2022.
02
The UAE auto retail market is projected to grow at a CAGR of 5.8% from 2023 to 2028, reaching USD 25.2 billion by 2028 driven by rising disposable incomes and tourism.
03
UAE's new car sales volume reached 317,889 units in 2022, up 23.4% from 257,514 units in 2021.
04
The luxury car segment in UAE accounted for 28% of total passenger car sales in 2023, valued at over AED 15 billion.
05
UAE automotive aftermarket size was estimated at USD 4.2 billion in 2022, expected to grow to USD 6.1 billion by 2030 at 4.8% CAGR.
06
Commercial vehicle market in UAE grew by 18.5% YoY in 2022, contributing AED 8.9 billion to the overall auto sector.
07
UAE's auto parts import value surged to USD 12.3 billion in 2022, a 14% increase from 2021.
08
Passenger car market in UAE is forecasted to hit 350,000 units annually by 2025, with a 4.5% CAGR from 2023.
09
UAE electric vehicle market revenue reached USD 1.2 billion in 2023, part of broader auto market expansion.
10
Total UAE vehicle exports from assembly plants hit 45,000 units in 2022, boosting market value by 12%.
11
UAE auto financing market grew to AED 120 billion in outstanding loans by end-2022, up 20% YoY.
12
The UAE used car market size was valued at AED 20.5 billion in 2023, with 15% annual growth.
13
Automotive e-commerce sales in UAE reached AED 3.8 billion in 2022, growing at 25% CAGR.
14
UAE's light commercial vehicle segment contributed 22% to total auto sales value in 2023.
15
Overall UAE auto industry GDP contribution stood at 2.1% or AED 28 billion in 2022.
Interpretation
Market Size & Growth Interpretation
While it’s busy creating shiny new billionaires and gobbling up billions in imports, the UAE auto industry proves its robust health not just by selling luxury cars but by keeping its entire economic engine—from financing to e-commerce—purring along at an impressive 6.2% growth.
05 · Category
Vehicle Sales & Registrations25 stats
01
UAE new passenger vehicle registrations totaled 289,000 units in 2023, a record high.
02
Toyota led UAE car sales with 78,456 units sold in 2022, capturing 24.7% market share.
03
Nissan sold 42,300 passenger cars in UAE in 2023, ranking second with 14.2% share.
04
Mercedes-Benz registrations in UAE reached 25,100 units in 2022, up 12% YoY.
05
Hyundai new vehicle sales in UAE hit 38,900 units in 2023, with strong SUV demand.
06
Commercial vehicle registrations in Dubai alone were 28,456 in 2022, 19% growth.
07
BMW Group sales in UAE achieved 18,200 units in 2023, including MINI and Rolls-Royce.
08
Used car transactions in UAE totaled 450,000 units in 2022, valued at AED 18 billion.
09
Abu Dhabi new car registrations surged to 112,000 in 2023, 25% YoY increase.
10
Ford sales in UAE reached 15,600 units in 2022, led by F-150 pickups.
11
SUV registrations accounted for 62% of total new car sales in UAE in 2023.
12
Kia Motors sold 22,400 vehicles in UAE in 2023, gaining 2% market share.
13
Total heavy truck registrations in UAE were 12,300 in 2022, up 16%.
14
Lexus luxury sales in UAE hit 9,800 units in 2023, 11% growth.
15
Porsche delivered 4,500 vehicles in UAE in 2022, record year.
16
In 2022, UAE new light vehicle sales increased by 21% to 297,285 units.
17
Market share of Japanese brands in UAE was 52% in 2023 car sales.
18
Volkswagen Group sold 16,800 vehicles in UAE in 2023.
19
Pickup truck sales in UAE totaled 35,200 units in 2022.
20
Sharjah vehicle registrations grew 17% to 45,000 new cars in 2023.
21
Audi sales reached 11,500 units in UAE 2023, led by Q5/Q7.
22
Total motorcycles registrations in UAE hit 18,000 in 2022.
23
Chinese brands captured 12% market share with 38,000 sales in 2023.
24
Jeep Wrangler was top-selling SUV with 8,200 units in UAE 2022.
25
Ras Al Khaimah new registrations up 22% to 12,500 vehicles 2023.
Interpretation
Vehicle Sales & Registrations Interpretation
The UAE's roads are becoming a monument to automotive excess, where record-breaking new car sales, a booming used market, and an unquenchable thirst for SUVs prove the national hobby is not just driving, but acquiring.
Reference
Cite This Report
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APA
Henrik Dahl. (2026, February 13). Uae Auto Industry Statistics. Gitnux. https://gitnux.org/uae-auto-industry-statistics
MLA
Henrik Dahl. "Uae Auto Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/uae-auto-industry-statistics.
Chicago
Henrik Dahl. 2026. "Uae Auto Industry Statistics." Gitnux. https://gitnux.org/uae-auto-industry-statistics.
Sources & references
64 datasets cited across this report · attribution is report-level