Forecast: Passenger Cars in Use in the UAE

The passenger cars in use in the UAE have seen a consistent growth trend from 2013 to 2023, starting at 1.7 million units in 2013 and reaching 2.51 million units in 2023. The growth experienced notable fluctuations, with a sharp dip in 2020 due to external factors like economic slowdown, dropping by 14.47%. However, this was followed by a strong recovery in 2021 with a 17.78% increase. The most recent year-on-year variations indicate a stable growth trend, with a 2.64% increase in 2023 compared to 2022.

Over the last five years ending in 2023, the compound annual growth rate (CAGR) was 2.91%, reflecting moderate yet steady growth. Looking forward, forecasts suggest a continuing positive trend with a projected CAGR of 2% from 2024 to 2028, leading to an expected passenger car count of 2.85 million units by 2028, translating to a 10.4% growth over these five years.

Future trends to watch for:

• Impact of economic fluctuations on passenger car demand.
• Adoption of electric vehicles and related market dynamics.
• Government policies and incentives regarding automotive purchases.
• Technological advancements in automotive technologies and their acceptance in the UAE market.