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Autodata Bi-Annual Report Highlights Key Insights Shaping The Used Car Market

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Engine type preferences and EV considerations

AutoData Middle East, a leading automotive data solutions provider and subsidiary of World Automotive Group (WAG), has published its bi-annual report on the GCC used car market. It highlights the rising demand for EVs, residual values, key trends in consumer behaviours, transforming customer purchasing journeys and the growing influence of Chinese brands in the region.

Offering a comprehensive overview of the current competitive landscape, AutoData Middle East supports buyers and sellers to navigate the complexities of the used car sector with confidence and transparency. Five key factors were prominent throughout the report:

Burgeoning Demand for EVs

The demand for electric vehicles (EVs) in the UAE and KSA is on the rise, bolstered by government initiatives and the expansion of EV infrastructure. As of 2024, the UAE ranks eighth globally in EV market readiness, supported by an estimated 325 charging stations.

With a growing focus on sustainability, 79% of UAE consumers and 72% of KSA consumers are considering EVs for their next vehicle purchase. The UAE market share of EVs is expected to increase significantly, projected to be more than 15% by 2030. Dubai reached 25,929 EVs, while Abu Dhabi witnessed an EV fleet growth of up to 2,441 models by Q4 2023.

In the Middle East, countries such as the UAE and KSA have set ambitious targets to facilitate the adoption of EVs. The UAE government aims to expand its EV charging infrastructure to 10,000 stations by 2030, to reach 50% electric and hybrid vehicles by 2050. This sustainable target is also reflected in Dubai, as the Emirate aims to transition its taxi fleet to 100% eco-friendly vehicles including hybrid, EV and hydrogen-powered models by 2027. Furthermore, as part to of the Saudi Vision 2030, KSA’s Public Investment Fund (PIF) aims to roll out 5,000 fast charging stations by 2030.

This shift towards sustainable transportation has resulted in a rise in EV sales on marketplaces such as DubiCars, which saw a 45% increase from 2022 to 2023, with a further 13% expected growth in 2024.

Autodata Bi-Annual Report Highlights Key Insights

Residual Value Performances

AutoData’s latest research on residual values reveals that used electric and hybrid vehicles are outperforming petrol and diesel vehicles in the UAE. The report revealed a 250% increase in EVs and hybrid models over the past five years, driven by a burgeoning interest and investment in EVs, with many automotive brands introducing a range of models to meet this demand. 

SUVs continue to show substantial value retention compared to sedans. Premium and luxury vehicles, despite their price points, have resulted in a decline in residual value after a few years due to higher maintenance costs. 

GCC-Compliance

The report highlights a notable increase in the demand for GCC-spec vehicles, with 86% of Vehicle Report users identifying as buyers, primarily interested in models from 2015 and 2020. Toyota and Nissan continue to dominate the market, with capturing 24.8% and 17.1% of the market share in Q1 2024, respectively. Additionally, drivers are increasingly opting for vehicle leasing services with 83% showing willingness to consider leasing contracts. This is due to the flexibility leasing options offer drivers, including complimentary services such as free insurance, servicing and maintenance, lease duration and mileage flexibility, and more. 

Purchasing Vehicles in the Digital Landscape

Consumers in the UAE and KSA are increasingly opting to begin their car-buying journey digitally, highlighting a clear preference for online research before making in-store visits. This integrated approach underscores the need for automotive market players to provide a seamless transition between online and offline channels.

According to Consultancy Middle East’s customer survey, 83% of respondents prefer to begin their purchasing journey via dealer websites, while 85% still favour in-store negotiations. This trend highlights the importance of a seamless integration between marketplace platforms and physical showrooms, offering convenient customer experiences.

Autodata Bi-Annual Report Highlights Key Insights

Platforms such as Dubizzle and DubiCars dominate the digital landscape with a combined 73% market share due to expansive inventories and integrated user-friendly interfaces, while other market players such as YallaMotor holds 13% and OpenSooq occupies 11% market share. The remaining 3% is shared across Cars24 and smaller players with detailed listings and services such as inspections, financing, and more.

The Rise of Chinese Brands

Chinese automotive brands are quickly gaining a strong foothold in the UAE’s automotive sector. AutoData highlights the demand for Chinese cars has increased by 150% in June 2024 compared to 2023 across marketplaces such as DubiCars. Consumers are increasingly favouring these brands over traditional American, Japanese and European options, driven by key factors including affordability and high-tech features. For example, the average price for a new Chinese hatchback is 34.5% lower than an American model.

With diverse product offerings, improved quality and implementation of innovative technology, Chinese automotive brands are cementing their foothold in the region. According to DubiCars, Chinese brands have increased their market share from 0.58% in 2022 to 2.68% in 2023. In the UAE, leading brands include Jetour, Changan, BYD (Build Your Dreams), JAC, and Chery.

“At AutoData Middle East, we are at the forefront of the dynamic and rapidly evolving used car market in the region. Our commitment to transparency and confidence is reflected in the innovative tools we provide, such as the Vehicle Report, which offers detailed insights into a vehicle’s past, including accident history, previous ownership, and market valuations. We are excited to launch our new B2B tool – DealRevs – that empowers used car businesses, dealers, and stakeholders with real-time data, enabling them to make more informed decisions and accurately assess price points when buying and selling vehicles. Our services are invaluable for both consumers and businesses looking to navigate the complexities of the growing used car market,” concludes Sebastian Fuchs, Managing Director of AutoData Middle East.

Automotive

Navigating the Future of Air Travel: The Role of NDC in Transforming the Industry

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flying airplane with clouds behind
  • By Ernesto Sanchez Beaumont, Managing Director Amadeus Gulf

In the ever-evolving travel industry, airlines and travel agencies are increasingly turning to cutting-edge solutions to stay competitive and deliver enhanced customer experiences. One such airline retailing solution is New Distribution Capability (NDC), a transformative approach that is reshaping how airlines and travel sellers interact with consumers, unlocking new opportunities for personalization, differentiation, and growth.

For Amadeus, NDC represents a significant shift in the way airlines distribute their products, and how travel sellers consume them. By embracing NDC, airlines gain the ability to deliver richer, more personalized content to travelers, allowing for more dynamic and flexible pricing models. In real-time, travel sellers can access tailored offers that meet the specific needs and preferences of their clients, ultimately driving better customer experiences and higher revenue potential.

Enhancing Product Differentiation and Customer Experiences

At its core, NDC enables airlines to innovate in ways that supports modern retailing, giving them greater control over their content, and allowing them to present their products in a way that is more relevant and engaging for consumers. With this technology, airlines can offer unique bundles, special services, and customized fare options, differentiating their offerings from competitors – and distribute them in a way that enrich and enhance the shopping experience on the buyer’s side. As a result, travelers can enjoy a more tailored experience—one that aligns with their individual or company preferences, whether they prioritize cost savings, convenience, or premium services.

From the perspective of travel sellers, NDC can provide them with more dynamic content and tailored offers, allowing agents to access the latest fares and offers and craft more personalized travel packages. This not only enhances the value provided to travelers but also strengthens the relationship between the travel sellers and their clients. By delivering offers that are more relevant and attractive, travel sellers are better equipped to capture new revenue streams and improve customer loyalty in a highly competitive market.

NDC’s Impact on Revenue Potential

NDC also brings significant revenue opportunities to both airlines and travel agents. The dynamic pricing capabilities enabled by NDC allow airlines to adjust their fares in real-time based on market demand, traveller preferences, and competitive factors. This level of pricing flexibility opens the door to more strategic revenue management and improved yield. At the same time, travel sellers are able to access exclusive deals and tailored offers that resonate more with their clients, driving additional sales and elevating the overall travel experience.

For airlines, the ability to provide detailed service descriptions, images and personalized offers through the NDC technology allows for upselling and cross-selling opportunities that were previously untapped. Travel agents, by accessing this richer content, can better recommend and cross-sell ancillary services such as seat upgrades, baggage options, and inflight services to best suit their clients’ needs, ultimately increasing revenue per passenger.

NDC: A Future-Proof Solution for Travel Sellers

In today’s rapidly changing travel landscape, the adoption of NDC is becoming essential for travel sellers to remain competitive. As travelers increasingly expect a personalized, seamless, and efficient booking experience, travel sellers must evolve to meet these demands. NDC provides the tools needed to deliver on these expectations, helping travel sellers future-proof their business by staying ahead of industry trends.

At Amadeus, we recognize the importance of NDC in driving the next phase of industry growth. We are committed to supporting travel agencies through this transition by offering the tools, content, and expertise necessary to thrive in the new world of modern retailing. We exploit all the advances that this new technology brings, but we also make sure that it makes sense for those using it, not compromising operational efficiency.  

That is why our solutions provide deep end-to-end integrations of content via NDC into the travel seller’s technical ecosystem, so that existing tools and processes can be used also with NDC-sourced content. By embracing NDC, travel sellers can unlock new potential and deliver superior value to their clients, securing their place in the future of travel.

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Automotive

Hala Expands Accessibility with New WhatsApp Ride Booking Service

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Hala launches WhatsApp booking for taxis in Dubai

Hala, Dubai’s most convenient e-hailing taxi solution, launched its WhatsApp booking platform as an additional channel for securing Hala rides in the city. This development will make it easier and more accessible for Dubai residents and visitors to access transportation with a simple text message.

As part of the new launch, Hala introduced a WhatsApp chatbot to manage booking requests, streamlining the process, and reinforcing Hala’s commitment to using technology to improve Dubai’s mobility options. The interactive chatbot will ensure customers enjoy an intuitive and friendly user experience. Additionally, passengers booking rides through WhatsApp will enjoy the same prices as those made via the Careem application.

Khaled Nuseibeh, Chief Executive Officer at Hala said, “We are excited to bring WhatsApp bookings to our customers across Dubai, making their booking process fast and more accessible.  As one of the world’s most popular messaging platforms, WhatsApp allows us to reach a wider audience and engage with its large user base in the city. By introducing this additional booking channel, Hala continues to make a difference in the way people commute daily across Dubai.”

The WhatsApp ride-booking feature is simple and quick to use:

  1. Passengers can message ‘Hi’ to 800 HALATAXI (4252 8294) to start the booking process. The Hala chatbot will request the passenger’s location to book a ride.
  2. Passengers will then receive a booking confirmation along with the captain’s information and estimated arrival time.
  3. Real-time updates are provided, allowing customers to track their ride until the taxi arrives.
  4. Passengers will receive a live tracking link, which can be shared with friends and family to monitor their journey.
  5. Users can pay at the drop-off location via card or cash.

The service is available 24/7, providing passengers with easy access to rides at any time of day or night. In addition to WhatsApp bookings, Hala continues to offer its regular booking option through the Careem application. This ensures that Dubai residents and tourists benefit from a smooth and hassle-free taxi booking experience.

As Dubai’s most convenient e-hailing taxi solution, Hala remains committed to integrating innovative technology into its operations, continuously seeking ways to elevate the customer experience and expand its service offerings. Hala currently manages 24,000 captains on its platform with a fleet of 12,000 cars provided by its franchise partners for Dubai residents and visitors.

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Automotive

World’s First Ferrari-Themed Esports Arena to Open at Ferrari World, Yas Island, Abu Dhabi

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Ferrari World Esports Arena

Ferrari World Yas Island, Abu Dhabi hosted an exclusive preview event on August 29 ahead of the launch of the world’s first Ferrari-themed Esports Arena which is set to officially open to the public in September 2024. The award-winning theme park celebration featured VIPs, media, influencers, and other distinguished guests.

The event had guests on the edge of their seats with thrilling live entertainment, including performances by a Pit Crew Dance Troupe, a comedic mechanic, a mesmerizing magician, and fantastic music by a DJ. The arena’s decor featured two striking Ferrari car displays, a wind tunnel, and large LED screens, immersing guests in the Esports atmosphere. As guests entered the Ferrari World Esports Arena, they were captivated by the complex details, the exhilarating driver seats, and the evident excitement that filled the space, in addition to the iconic Ferrari red branding that covered the arena.

Faisal Al Nuaimi, General Manager of Ferrari World Abu Dhabi

Faisal Al Nuaimi, General Manager of Ferrari World Abu Dhabi, expressed his excitement and said “We are thrilled to welcome guests in September 2024 to experience the world’s first Ferrari-themed Esports Arena right here on Yas Island. This groundbreaking attraction showcases cutting-edge technology and innovative simulators, providing our guests with an unparalleled racing experience. We take great pride in bringing this advanced technology to our park and allowing visitors to unleash their inner racer.”

F1 fans and adrenaline junkies can immerse themselves in the ultimate racing experience at the Ferrari-themed Park. The arena boasts 20 Gran Turismo simulators, including 14 for adults and 6 designed for younger guests, ensuring fun for the whole family. Adding a further element of thrills, there are three F1 simulators that allow participants to feel the rush of driving a real Ferrari race car on an F1 Grand Prix circuit. Additionally, Ferrari World Abu Dhabi remains committed to inclusivity with two GT simulators specifically designed to accommodate people of determination.

Theme Park entry tickets will include access to the GT simulators until year end, while the F1 simulators are available at an additional fee starting from AED 60 per race. Racing enthusiasts can visit the world’s first Ferrari-themed Esports Arena in September to experience the new attraction firsthand, experiencing the thrill of F1 drivers, right in the heart of Abu Dhabi.

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