Chinese vehicles are rapidly gaining traction among car buyers in the GCC, particularly the UAE and Saudi Arabia, a report showed.

According to data from AutoData Middle East, a subsidiary of World Automotive Group (WAG) and a leading automotive data solutions provider in the UAE, The automotive industry is undergoing rapid transformation, with the UAE recording 318,981 vehicle registrations in 2024 — a 15.7 per cent increase following a 27.2 per cent surge in 2023. Saudi Arabia also surpassed a significant milestone, exceeding 1 million vehicle registrations for the first time.

Chinese automakers are continuing to grow their market share in both the UAE and Saudi Arabia. Overall, Chinese brands are reshaping market dynamics, with vehicle inquiries rising by 77 per cent in late 2024, signalling a stronger foothold in the used car market.

Data from VehicleReport.me reveals that 86 per cent of users are buyers, while 14 per cent are sellers. Among buyers, 75 per cent prefer GCC-spec vehicles, which are specifically designed to withstand the region’s climate and conditions. 

When it comes to purchasing behaviour, 83 per cent of respondents in both the UAE and Saudi Arabia prefer to start their car-buying journey on dealer websites, underscoring the importance of a strong online presence. UAE car buyers, in particular, visit dealerships an average of 3.9 times before making a decision — the highest globally.

Used car listings on DubiCars illustrate a growing preference for Chinese models, with listings increasing by 56 per cent in 2024, while non-Chinese brand listings declined by 5 per cent. The hybrid segment also gained momentum, with listings rising 44 per cent, while EV listings showed only a modest 2 per cent increase, highlighting consumers’ preference for fuel-efficient alternatives over fully electric vehicles. SUVs continue to dominate the market.

The UAE government is accelerating its Electric Vehicles (EV) adoption efforts, targeting 50 per cent of total vehicle sales by 2050. Dubai is also making significant strides, with plans to increase EV numbers to 42,000 by 2030, a sixfold increase from current levels.

EV charging infrastructure continues to develop, supported by government incentives and advancements in ultra-fast charging technology. The UAE remains at the forefront of autonomous mobility, with 60 per cent of respondents supporting self-driving vehicle adoption. “Initiatives such as Masdar City’s autonomous vehicle trials and Dubai’s goal for 25 per cent of trips to be driverless by 2030 are paving the way for the region’s future in smart mobility,” a statement said.

As electrification and autonomous mobility gain traction, the UAE and Saudi Arabia are emerging as pivotal players in the global automotive shift.

Looking ahead: The road to transformation

The report underscores the region’s dynamic shift towards enhanced consumer trust and varied industry strategies in the automotive sector. From the growing demand for transparency in vehicle history to the surge in Chinese car brands and the acceleration of hybrid and EV adoption, the region’s automotive industry is poised for continued evolution.