After a year of supply shortages and climbing borrowing costs, the automotive industry is in brisk business, and even the pre-owned car market is witnessing strong demand. According to AutoData Middle East’s latest report, the UAE used car market is experiencing a surge in demand and growth.

So much so that the sale of the used car market is projected to reach $48.15 billion by 2030 at a compound annual growth rate (CAGR) of 11.5%.

The data reveals a strong preference for moderately priced pre-owned cars, with the $5,500 – $8,200 segment leading the pack, followed by $13,600 – $21,800 and $40,800+ categories. 

Notably, the recent flooding in April 2024 has spurred the emergence of a new price bracket between  $5,500 – $8,200, catering to the rising demand for replacement vehicles.

The report also explores buyer behavior, with 86% of Vehicle Report users identified as car buyers and 14% as sellers. The most sought-after models are from 2015 and 2021, with a clear preference for GCC-spec vehicles (74%) compared to non-GCC (26%). 

Toyota and Nissan emerged as the most popular brands, accounting for 32.8% and 19.2% of the market share in 2024, respectively.

The report highlights the increasing demand for competitive car insurance as the used car market flourishes. In the past six months, AutoData recorded over 12 million insurance queries for leading brands like Mercedes, BMW, and Toyota.

AutoData is launching a Claim Hub platform to address the lack of efficient flood damage claim monitoring. This B2B platform allows insurance providers to share critical claim data, enhancing operational efficiency, fraud detection, and collaborative decision-making within the industry.