Chinese cars on the rise in UAE, despite drop in domestic sales

Yalla Motor reported 86 percent increase in Chinese car sales in UAE
Chinese cars on the rise in UAE, despite drop in domestic sales
Chinese vehicle manufacturers targeting UAE market 

A report released lately revealed that Chinese car sales are on the rise in the United Arab Emirates (UAE), even as demand for cars in China is declining. With the majority of its car sales relying on exports, China is targeting the Middle East, including the Gulf region.

According to the study, Yalla Motor, an online car dealer, observed a year-on-year increase of approximately 86 percent in Chinese state-owned MG sales from January to March. In the first quarter of the year, MG, based in Shanghai, was the fourth highest-selling brand for Yalla Motor in the UAE. The highest-selling brands were Toyota and Nissan, both major Japanese car manufacturers, followed by South Korean carmaker Hyundai.

Read more: Chinese-branded EVs will account for 50 percent of global EV sales by 2026

Geely, a multinational Chinese automotive group distributed by the Arabian Gulf Mechanical Center (AGMC) in the UAE, has sold over 1,000 units in the Emirates within three months of setting up, according to a statement. Geely has established a showroom in Sharjah, a northern emirate, and intends to open another in the country’s capital, Abu Dhabi, by the end of this year.

According to a press release from the car manufacturer, BYD, a Chinese electric vehicle (EV) brand, partnered with Al-Futtaim Electric Mobility Company in the UAE back in March. The UAE is the first country in the Middle East to offer BYD vehicles through this partnership.

Chinese cars UAE

Decline in sales

Although Chinese vehicle sales and presence appear to be increasing in the UAE, China saw a decline in sales last month. According to the China Passenger Car Association’s report published on July 10 , passenger vehicle sales decreased by 2.9 percent in June compared to the same period last year, with a total of 1.91 million units sold. This is the first contraction since January, despite overall sales in the first half of the year rising by 2.5 percent to 9.65 million units. 

To maintain their sales growth, Chinese vehicle manufacturers are still dependent on foreign markets, with overseas market exports accounting for 56 percent of Chinese vehicle sales in June. The Middle East is of particular interest to Chinese manufacturers.

For more news on industry, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.