United Arab Emirates Autos Report - Business Monitor International - Industry Reports

United Arab Emirates Autos Report

United Arab Emirates Autos Report - Business Monitor International - Industry Reports
United Arab Emirates Autos Report
Published Sep 10, 2016
35 pages — Published Sep 10, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

...On current sales trends, this would indicate a full-year outcome in the region of ---,--- units. ...Consequently, we leave our UAE auto sales forecasts unchanged this quarter. As our Country Risk team expects the construction sector to remain one of the main drivers of economic growth over the coming quarters, we still expect the commercial vehicle (CV) segment to outperform the overall autos market during ---- as heavy vehicle demand will remain robust. Preparations for the World Expo ---- in Dubai will continue to boost the local construction industry and, by extension, create demand for heavy commercial vehicles (HCVs) and related construction equipment in particular. ...The Expo will also boost the UAE s tourism sector, leading to greater demand for buses and minibuses, alongside rental cars, over the medium term. However, with UAE consumers set to spend much less on passenger cars (PCs) over ---- as a result of cuts to government spending and weaker consumer confidence, we see significant new vehicle sales underperformance over the current year.

...This quarter, we maintain our negative near-term stance towards the UAE autos sector. For -M-- new car sales were down by --.- ; consequently, we maintain our forecast of a --.- contraction in sales over the full year. We expect the passenger car segment to underperform the overall autos market in ----, as cuts in public spending and higher prices impact on UAE consumers. The commercial vehicle segment will remain a relative outperformer over the short term, as there should be strong demand for heavy vehicles for use within the buoyant construction sector ahead of Expo ----. A proposed VAT in ---- will create an uptick in passenger car sales in ---- as consumers aim to beat the tax. ...� There remains rising demand for motorcycles within the UAE at the present time, both at the lower end, for use by expatriate workers, as well as at the higher end, for use by richer UAE consumers. � At an individual emirate level, we remain the most upbeat regarding auto sales prospects within Dubai, which will record the fastest rate of growth of the seven emirates in the UAE over the next few years.

...Indeed, the outlook is less positive for passenger cars (PCs), as we believe demand will remain weak in the light of further cutbacks in government spending and reductions in subsidies for utilities as a result of lower oil prices. In particular, the country looks set to increase the prices of basic goods as it seeks to cut its overall budget deficit. ...In particular, the country looks set to increase the prices of basic goods as it seeks to cut its overall budget deficit. One other budgetary measure - the plan by the GCC member states to introduce a value-added tax (VAT) by ---- - is behind our forecast for a return to positive car sales growth of -.- in ----. We believe the planned tax will prompt some consumers to buy in ---- before the tax is implemented, although we actually forecast a further strengthening in new vehicle sales from ---- onwards as the economic picture continues to improve (see chart below). ...

  
Source:
Document ID
1749-0243
Country
Industry
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "United Arab Emirates Autos Report" Sep 10, 2016. Alacra Store. Dec 11, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/United-Arab-Emirates-Autos-Report-2026-433>
  
APA:
Business Monitor International - Industry Reports. (2016). United Arab Emirates Autos Report Sep 10, 2016. New York, NY: Alacra Store. Retrieved Dec 11, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/United-Arab-Emirates-Autos-Report-2026-433>
  
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