TALKING

As an e-commerce platform for used vehicles across India, the UAE, and Australia, CARS24 is firsthand witnessing how this change is accelerating. The used car sector is no longer an afterthought— it is driving the future of transportation in MENA.

Traditionally, the MENA region has been known for its strong preference for new cars. However, prevailing trends demonstrate a U-turn. Analysts predict that the region’ s used car market will grow at a compound annual growth rate of 10 % until 2028, driven by a range of factors, including population growth, increased expatriate influx, rising disposable incomes, and more flexible financing options.

These numbers are an indication of how the industry is widening its options to make transport more comfortable, affordable, and accessible for consumers across the UAE.

One of the biggest shifts is the formalisation of used car sales channels. Independent dealers, franchisebased dealerships, and digital platforms are all vying for a share of this lucrative market. In fact, the UAE’ s used-to-new car sales ratio is now 3.5:1, signalling a significant shift in consumer behaviour.

Additionally, the MENA region has been experiencing significant urbanisation over the past few decades. Consumer preferences for sustainability and a growing awareness of environmental impact have fuelled demand for used electric and hybrid cars.

Moreover, the depreciation of new cars within the first few years makes used cars an attractive option, providing cost-conscious buyers with reliable and affordable alternatives. The market’ s trajectory is further shaped by regulatory changes, financing options, and the overall health of the automotive industry.

Another major market for the adoption of used cars is Saudi Arabia, which has witnessed significant growth in recent years due to various factors, including economic considerations and changing consumer preferences. As the cost of living rises and individuals seek more economical transportation solutions, the appeal of used cars is evident.

Saudi Arabia’ s economic diversification efforts is resulting in a growing middle class, contributing to increased demand for affordable yet reliable transportation. Additionally, as consumers become more environmentally conscious, the sustainability aspect of extending the lifespan of vehicles is gaining traction. This merging of economic, social, and environmental factors is driving used car adoption in Saudi Arabia.

The digital transformation of the automotive industry is perhaps the most influential factor reshaping the used car sector. Consumers in the Middle East are among the most digitally savvy globally, with 96 % of prospective auto buyers in the UAE and Saudi Arabia initiating their purchase journey online by researching and comparing different brands and models.

This shift has not only made the market more accessible but has also simplified the process significantly, with consumers now being able to find essential information through online platforms for everything from research and financing to direct vehicle purchases.

Digital marketplaces are revolutionising the used car transaction process by providing transparency, competitive pricing, and seamless logistics.

As a result, e-commerce platforms are expanding their value propositions, offering doorstep delivery,

Abhinav Gupta, CEO CARS24 Gulf Region

Independent dealers, franchisebased dealerships, digital platforms, are all vying for a share of this lucrative market.

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