1. General Market – The KSA and UAE markets are experiencing robust growth, with established importer groups maintaining dominant positions. Chinese manufacturers are increasingly entering these markets to capitalize on evolving global political dynamics.
2. Omni-Channel – The Middle East automotive market is highly digital, relationship-oriented, and heterogeneous, requiring brands to adopt a comprehensive omni-channel approach and tailor their offerings to the unique cultural and consumer preferences in the region.
3. Electric Vehicles – Although electric vehicle adoption remains modest, steady growth is evident. Principal barriers for an EV uptake include insufficient charging infrastructure, consumer range anxiety, and concerns over low residual values of used EVs.
4. Mobility & Financial Services – Approximately 75% of vehicles in both markets are financed, yet the end-2-end customer journey is not fully digitized, presenting a substantial opportunity for automotive dealers. Prioritizing digitalization and forging partnerships with financial institutions will drive higher conversion rates and improve profit margins. Integrated, flexible, and digital mobility solutions are gaining importance amongst flexibility-oriented customers.
5. Used car market – The used car market is highly fragmented, non-transparent and lacks standardization; nonetheless, current momentum presents considerable opportunities for structured pre-owned programs, integrated financing solutions, with additions to the used car fleet from returning leasing/ rental vehicles of emerging Chinese OEMs.
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