Rev up your engines: from a booming AED 28.4 billion market to a surge in EVs and luxury SUVs, the UAE's automotive industry isn't just driving forward – it's shifting into an electrifying new gear.
Key Takeaways
- The UAE automotive market reached a value of AED 28.4 billion in 2023, reflecting a compound annual growth rate (CAGR) of 6.8% from 2019 to 2023.
- Passenger car segment accounted for 68% of the total UAE automotive market revenue in 2023.
- UAE light commercial vehicle market grew by 9.2% year-on-year in 2023 to reach 45,000 units.
- Toyota sold 78,000 vehicles in UAE in 2023, capturing 25% market share.
- Nissan achieved 52,000 unit sales in UAE 2023, second highest brand.
- New passenger car registrations in UAE totaled 278,000 in 2023.
- UAE automotive manufacturing output grew 15% to 85,000 units in 2023.
- Dubai Industrial City hosts 12 auto assembly plants producing 40,000 vehicles annually as of 2023.
- Abu Dhabi bus manufacturing facility produced 1,200 units in 2023.
- UAE EV registrations surged 110% to 14,200 units in 2023.
- Tesla Model 3 was top EV with 4,500 registrations in UAE 2023.
- UAE charging stations network expanded to 1,800 points by end 2023.
- UAE automotive sector employed 145,000 people in 2023.
- Automotive retail jobs accounted for 62,000 positions in UAE 2023.
- Manufacturing plants created 28,000 direct jobs in UAE auto sector 2023.
The UAE automotive market achieved strong growth in 2023 across sales, manufacturing, and electric vehicles.
Electric Vehicles and Sustainability
- UAE EV registrations surged 110% to 14,200 units in 2023.
- Tesla Model 3 was top EV with 4,500 registrations in UAE 2023.
- UAE charging stations network expanded to 1,800 points by end 2023.
- EV market share in UAE new sales reached 4.5% in 2023.
- Abu Dhabi EV adoption rate hit 6% of total sales in 2023.
- Dubai launched 500 new EV chargers in 2023, totaling 1,200.
- MG ZS EV sold 2,800 units in UAE 2023.
- UAE government EV incentives reduced prices by up to 20% in 2023.
- Nissan Leaf registrations totaled 1,900 in UAE 2023.
- UAE hybrid sales grew 45% to 22,000 units in 2023.
- Public EV charging utilization rate averaged 35% in UAE 2023.
- BYD Atto 3 registered 3,200 sales in UAE 2023.
- UAE EV battery recycling facilities processed 1,200 tons in 2023.
- Toyota bZ4X EV debuted with 1,100 registrations in UAE 2023.
- UAE solar-powered charging stations installed 150 units in 2023.
- Kia EV6 sales reached 1,500 units in UAE 2023.
- UAE fleet EV conversion rate was 12% for government vehicles in 2023.
- Hyundai Ioniq 5 registered 1,200 sales in UAE 2023.
- UAE EV import duty waived entirely for 2023-2025 period.
- Polestar 2 sales hit 850 units in UAE luxury EV segment 2023.
- UAE green number plates for EVs issued 12,500 in 2023.
- BMW iX registrations totaled 950 in UAE 2023.
- UAE aims for 50% EV sales by 2050, with 2023 baseline at 4.5%.
- Audi e-tron sales were 1,100 units in UAE 2023.
- Fast charger installations grew 40% to 450 units in UAE 2023.
- Mercedes EQS registered 750 sales in UAE 2023.
- UAE EV consumer satisfaction score averaged 92% in 2023 surveys.
- Porsche Taycan sales reached 650 units in UAE 2023.
Electric Vehicles and Sustainability Interpretation
While Tesla is still leading the charge, the UAE's electric vehicle market is no longer a one-horse race, with blistering sales growth, a rapidly expanding charging network, and a flood of new models proving the nation is seriously shifting gears toward a sustainable future.
Employment and Economic Impact
- UAE automotive sector employed 145,000 people in 2023.
- Automotive retail jobs accounted for 62,000 positions in UAE 2023.
- Manufacturing plants created 28,000 direct jobs in UAE auto sector 2023.
- Aftermarket services employed 35,000 workers in UAE 2023.
- Logistics and transport auto-related jobs totaled 20,000 in UAE 2023.
- UAE auto sector contributed 3.2% to national GDP in 2023.
- Expat workforce in UAE automotive was 78% of total employment in 2023.
- Skill development programs trained 12,000 auto technicians in UAE 2023.
- Dealership workforce grew 8% to 45,000 in UAE 2023.
- Auto insurance sector employed 8,500 people in UAE 2023.
- UAE auto exports supported 15,000 indirect jobs in 2023.
- Women in UAE auto workforce reached 12% or 17,400 in 2023.
- Vocational training centers graduated 4,500 auto mechanics in UAE 2023.
- Financing and leasing firms hired 6,200 in UAE auto sector 2023.
- UAE auto GDP multiplier effect created 250,000 total jobs in 2023.
- Rental car companies employed 11,000 staff in UAE 2023.
- Digital auto platforms generated 2,800 new jobs in UAE 2023.
- Repair shops numbered 5,200 employing 25,000 in UAE 2023.
- Auto sector average salary was AED 18,500 monthly in UAE 2023.
- Emiratisation in auto retail hit 7% or 2,800 jobs in 2023.
- Supply chain jobs in auto parts totaled 12,000 in UAE 2023.
- EV sector created 3,500 specialized jobs in UAE 2023.
- Tourism-driven auto jobs peaked at 18,000 in UAE 2023.
- R&D roles in automotive grew 22% to 1,200 in UAE 2023.
- Sales executives numbered 15,000 in UAE auto dealerships 2023.
- Heavy vehicle maintenance employed 4,200 technicians in 2023 UAE.
- Auto sector tax contributions totaled AED 1.8 billion in UAE 2023.
- Apprenticeships in manufacturing auto filled 2,100 spots in UAE 2023.
Employment and Economic Impact Interpretation
While the engine of the UAE's auto sector roars with a 3.2% GDP contribution and a quarter-million total jobs, its true horsepower lies in the detailed pistons of its workforce—from the 62,000 salespeople sealing deals and the 35,000 aftermarket wizards keeping cars alive, to the 3,500 EV specialists quietly shifting gears toward the future.
Manufacturing and Production
- UAE automotive manufacturing output grew 15% to 85,000 units in 2023.
- Dubai Industrial City hosts 12 auto assembly plants producing 40,000 vehicles annually as of 2023.
- Abu Dhabi bus manufacturing facility produced 1,200 units in 2023.
- UAE local content in automotive parts reached 28% in 2023.
- Kizad free zone auto manufacturing investments totaled AED 2.5 billion by 2023.
- UAE produced 22,000 light commercial vehicles locally in 2023.
- Al Ghurair Automotive manufactured 15,000 pickups in Ras Al Khaimah 2023.
- Automotive component manufacturing output value was AED 3.1 billion in 2023.
- UAE EV battery assembly plants initiated production of 5,000 units in 2023.
- Jebel Ali Free Zone auto parts factories exported AED 1.2 billion worth in 2023.
- UAE tyre manufacturing capacity hit 4 million units per year by 2023.
- Local automotive welding and fabrication output grew 20% to 18,000 tons in 2023.
- Sharjah auto cluster produced 8,500 SUVs in 2023.
- UAE 3D printing for auto prototypes reached 12,000 parts in 2023.
- Automotive painting facilities in UAE processed 75,000 vehicles in 2023.
- Local engine assembly lines produced 10,200 units in UAE 2023.
- UAE chassis manufacturing output was 25,000 units in 2023.
- Plastic auto components production hit 450,000 units in UAE 2023.
- Ajman industrial area auto factories output AED 850 million in 2023.
- UAE robotic automation in auto plants increased productivity by 25% in 2023.
- Heavy vehicle frame production totaled 6,800 units in UAE 2023.
- UAE seat manufacturing for autos reached 180,000 units in 2023.
- Wiring harness production in UAE grew to 2.5 million units 2023.
- UAE glass components for vehicles produced 1.8 million units in 2023.
- Brake system assembly output was 95,000 sets in UAE 2023.
- UAE suspension parts manufacturing hit 120,000 units in 2023.
- Exhaust system production totaled 68,000 units locally in UAE 2023.
- UAE lighting assembly plants output 220,000 units in 2023.
- Interior trim production reached 150,000 sets in UAE 2023.
Manufacturing and Production Interpretation
While the UAE's automotive industry isn't building a Veyron in every garage yet, 2023 proved it's no longer just about selling cars but seriously building them, with output booming from electric batteries to entire buses, all while weaving a complex local supply chain that now contributes nearly a third of its own parts.
Market Size and Growth
- The UAE automotive market reached a value of AED 28.4 billion in 2023, reflecting a compound annual growth rate (CAGR) of 6.8% from 2019 to 2023.
- Passenger car segment accounted for 68% of the total UAE automotive market revenue in 2023.
- UAE light commercial vehicle market grew by 9.2% year-on-year in 2023 to reach 45,000 units.
- The overall UAE vehicle market expanded by 12% in 2023, totaling 312,000 new vehicle sales.
- UAE automotive aftermarket size was estimated at USD 2.8 billion in 2023, projected to grow at 5.1% CAGR to 2028.
- Dubai's automotive sector contributed AED 15.2 billion to GDP in 2023, up 8% from previous year.
- Abu Dhabi automotive market share stood at 42% of national total in 2023.
- UAE used car market volume hit 250,000 transactions in 2023, valued at AED 18 billion.
- Luxury vehicle segment in UAE grew 15% in 2023 to represent 22% of total sales.
- UAE automotive e-commerce sales surged 28% in 2023 to AED 3.2 billion.
- Total UAE vehicle production capacity reached 120,000 units annually by end of 2023.
- UAE automotive retail market saw 11.5% growth in 2023, driven by tourism recovery.
- Heavy commercial vehicles market in UAE valued at AED 4.1 billion in 2023.
- UAE two-wheeler market size was AED 850 million in 2023, up 4.2% YoY.
- Automotive financing penetration in UAE reached 72% of new car sales in 2023.
- UAE automotive insurance market premium volume hit AED 6.5 billion in 2023.
- Spare parts import market in UAE grew to USD 1.9 billion in 2023.
- UAE automotive leasing market expanded 14% to AED 9.8 billion in 2023.
- Digital automotive sales platforms in UAE handled 18% of transactions in 2023.
- UAE premium SUV segment market value reached AED 7.2 billion in 2023.
- Total addressable market for autonomous vehicles in UAE projected at AED 5 billion by 2025 from 2023 base.
- UAE car rental market size was USD 2.1 billion in 2023, growing 10%.
- Automotive logistics sector in UAE handled 1.2 million vehicles in 2023.
- UAE hybrid vehicle market share increased to 8% of total sales in 2023.
- Commercial fleet management market in UAE valued at AED 2.4 billion in 2023.
- UAE automotive R&D investment totaled AED 1.2 billion in 2023.
- Off-road vehicle market in UAE grew 13% to AED 3.5 billion in 2023.
- UAE automotive export value reached AED 4.8 billion in 2023.
- Sedan segment declined 2% but still held 25% market share in UAE 2023.
- UAE automotive sector FDI inflows hit AED 2.9 billion in 2023.
Market Size and Growth Interpretation
The UAE's automotive engine is clearly firing on all cylinders, shifting from luxury daydreams to a booming aftermarket reality, with Dubai and Abu Dhabi in a friendly race for GDP glory while everyone else is busy clicking 'buy now' online and financing their way to the next premium SUV.
Sales and Registrations
- Toyota sold 78,000 vehicles in UAE in 2023, capturing 25% market share.
- Nissan achieved 52,000 unit sales in UAE 2023, second highest brand.
- New passenger car registrations in UAE totaled 278,000 in 2023.
- Dubai recorded 145,000 new vehicle registrations in 2023.
- Hyundai sales reached 42,000 units in UAE 2023, up 11% YoY.
- Commercial vehicle registrations in UAE hit 34,000 in 2023.
- Mercedes-Benz sold 28,500 luxury vehicles in UAE 2023.
- Abu Dhabi new car sales volume was 132,000 units in 2023.
- Ford sales in UAE climbed to 22,000 units in 2023.
- Pickup truck registrations surged 18% to 45,000 in UAE 2023.
- BMW Group sales totaled 24,000 vehicles in UAE 2023.
- Sharjah vehicle registrations reached 28,000 new units in 2023.
- Kia Motors sold 35,000 units in UAE market 2023.
- Electric vehicle registrations grew 65% to 12,000 in UAE 2023.
- Used car sales in Dubai hit 180,000 transactions in 2023.
- Porsche sales increased 22% to 4,200 units in UAE 2023.
- Ajman new vehicle registrations totaled 12,500 in 2023.
- Mitsubishi sales stood at 18,000 units in UAE 2023.
- SUV registrations dominated with 58% share, 162,000 units in UAE 2023.
- Audi sold 15,800 vehicles in UAE in 2023.
- Ras Al Khaimah registrations reached 9,200 new vehicles 2023.
- Chevrolet sales hit 14,000 units in UAE 2023.
- Hatchback sales fell 5% to 35,000 units in UAE 2023.
- Land Rover sales totaled 12,500 units in UAE 2023.
- Umm Al Quwain new registrations were 3,800 in 2023.
- MG Motors emerged with 11,000 sales in UAE 2023.
- Fujairah vehicle sales recorded 7,500 units in 2023.
- Isuzu truck sales reached 8,200 in UAE commercial segment 2023.
- Al-Futtaim Group dominated dealership sales with 35% share in UAE 2023.
- Galadari Automotive sold 9,500 units across brands in UAE 2023.
- Al Tayer Motors reported 28,000 vehicle deliveries in UAE 2023.
Sales and Registrations Interpretation
Toyota leads the pack with a commanding quarter of the market, proving that while everyone else is trying to navigate the UAE's roads, they're effectively driving the map.
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