GCC Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The GCC Used Car Market Report is Segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Sales Channel (Online and Offline), Vendor type (Organized and Unorganized) and Country (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait). The market size and forecast for GCC Used Car market are provided in terms of value (USD) for all the above segments.

GCC Used Car Market Size

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GCC Used Car Market Overview
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.58 %
Market Concentration Medium

Major Players

GCC Used Car Market

*Disclaimer: Major Players sorted in no particular order

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GCC Used Car Market Analysis

GCC Used Car Market was valued at USD 16.38 billion in 2021 and is expected to surpass a net valuation of USD 28.98 billion by 2027 end, registering a solid CAGR growth of 8.58% over the forecast period.

The COVID-19 pandemic had a moderate impact on the market as initial lockdowns in 2020 resulted in a slowdown in demand, however with ease in restrictions in 2021 consumers were encouraged to prefer used cars over new cars in wake of the pandemic coupled with fewer vehicle production due to supply chain disruptions and shortage of some auto components.

Over the longer-term forecast period, factors including economical cost and variety in the fleet are expected to boost the used car demand in the GCC region. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.

Demand for pre-owned cars for family, personal use among residents, and partial economic disruption with the new car segment alongside value-for-money have cumulatively driven the market into an immersive growth in the GCC. Over the years, the GCC which is the council of prominent middle eastern countries including the United Arab Emirates, the Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman has consistently witnessed improved sales bars in the used car segment.

Key logistics and trade partners are revamping their trade volumes to felicitate the vehicles demand in the GCC region. This has helped used car business owners who are simply importing cars from around the GCC region. For instance, in September 2022, Jebel Ali Free Zone (Jafza), which is the leading trade and logistics hub in the Middle East facilitated a total of 1.2 million (MT) from Dubai. The total volume of trade remains 4.8 million MT of vehicle & transport commodities through the United Arab Emirates in 2021.

Considering these factors and developments, demand for a used cars in the GCC region is expected to witness a high growth rate during the forecast period.

GCC Used Car Market Trends

This section covers the major market trends shaping the GCC Used Car Market according to our research experts:

Hatchback Segment is Expected to Gain Traction

Owing to the affordability of hatchbacks, the sales of this segment of the used car market were least disrupted during the global pandemic. Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Furthermore, because there are so few new models that qualify for these tax breaks, the price of used hatchbacks remains unaffected. When it comes to secondhand hatchbacks, these vehicles are an appealing alternative to the LCGC and LMPV kinds often utilized by GCC consumers.

Popularly used hatchbacks in GCC includes Infiniti Q30, Volkswagen Golf GTI, MINI Cooper, Renault Zoe, Suzuki Swift Sports, Kia Rio, Chevrolet, and others. These cars are gaining momentum in the market owing to their affordable prices, body style, and offered fuel economy. The hatchback offers better fuel economy compared to sedans and SUVs. These cars fit perfectly for a nuclear and middle-class economy family who look for a better budget car.

Popular banking firms are actively collaborating in order to boost used car sales in the GCC. for instance, in June 2022, the National Bank of Bahrain signed an MoU with Euro motors for financing used car in bahrian. This would help the hatchback customer to get their choice of car financed at affordable rates.

In Septmber 2022, Ministry of Interior in Doha announced the sale of cars through public auctios. Ministry includes all the vehicles that have not records on road and are considered illegal or financial restricted by General Traffic Department for the auction. Players in the market are figuring out the challenges in the business are seen making constructive investments, partnership and launches. For instnace:

  • In February 2022, Cars24 a renowned online platform has recently launched AI-enabled software in the United Arab Emirates allowing vehicle enthusiasts to purchase and sell cars within 30 minutes of downloading the program. Customers can also calculate their monthly EMI and track other characteristics like engine, steering, and tires.

With changing consumer preferences in terms of fuel economy, cost, and overall maintenance benefits, demand has been witnessing immense growth for the adoption of the used hatchback. today a diverse range of hatchbacks are on the Saudi Arabia market.

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United Arab Emirates to Hold Opportunity Pocket

Weaker economic sentiment in the United Arab Emirates is prompting residents to better opt for more affordable vehicles which are deeply acknowledged by a used car. The local automobile industry in the United Arab Emirates believes that the high digital penetration and strong countermeasures taken by the government are anticipated to stimulate the country's economy and boost the used car segment.

The United Arab Emirates has a significantly high penetration of internet users in the GCC region, and this is primarily attributed to the availability of high-speed internet at an affordable price. In 2021, there were 9.94 million internet users in the United Arab Emirates in January 2022 and the internet penetration rate stood at 99.0 percent of the total population at the start of 2022. This has motivated players to shift their business model from offline shops to online business models to provide an easy and hassle-free experience to their customers.

Changing consumer preferences in the used car landscape has driven the demand for the market. According to Industry experts, kilometers and fuel efficiency has been identified as key factor that is considered when owning a used car in the United Arab Emirates. People in the United Arab Emirates are often given priority to the kilometers as they themselves have witnessed several cases of cheating where wrong kilometer readings are conveyed during sales of used cars. In addition, certified cars have been the top emerging choice of United Arab Emirates consumer who believes in trusted deals. These certified used cars are pre-inspected and offer post-maintenance service plans to consumers for longer-term relationships between consumers and dealers.

Considering these factors, demand for a used cars in the United Arab Emirates is expected to witness a high growth rate during the forecast period.

Trend_2

GCC Used Car Industry Overview

GCC Used Car Market is considered to be moderately fragmented, accommodating several leading players like Al Tayer Group, Al-Naboodah, Al-Futtaim group, SellAnyCar.com, Car switch, Yalla Motors, and other prominent players. While several key offline used car dealers are focused on adopting expansion strategies like collaborative agreements, mergers, acquisitions, etc. other new entrants are also encouraged to explore the market and are actively focused on fleet expansion, varied offerings, etc.

In February 2022, Al-Futtaim Trading Enterprises, the official distributor of Honda in the UAE, launched its certified approved pre-owned program, providing customers the opportunity to purchase a pre-owned Honda with the same brand guarantee and high-quality service pledge as a brand-new Honda. With these appealing service plans, flexible in-house finance solutions, and competitive trade-in offers the approved pre-owned program offers appealing deals for aspiring Honda customers.

GCC Used Car Market Leaders

  1. Arabian Auto Agency

  2. YallaMotors

  3. AlNabooda Automobiles

  4. AlTayer Motors

  5. Alfuttaim Group

*Disclaimer: Major Players sorted in no particular order

GCC used car concentration.png
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GCC Used Car Market News

In September 2022, the Interior Ministry of Bahrain announced that the imported vehicles which have crossed 10 years of registration are not allowed to get registered in Bahrain. 

In December 2021, Car24 announced the investment of USD 400 million for its business expansion. The company is aiming to expand its business in Saudi Arabia, and in Southeast Asia over the period of next 12 months

GCC Used Car Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value USD Billion)

    1. 5.1 Vehicle Type

      1. 5.1.1 Hatchback

      2. 5.1.2 Sedan

      3. 5.1.3 SUV and MUV

      4. 5.1.4

    2. 5.2 Sales Channel

      1. 5.2.1 Online

      2. 5.2.2 Offline

    3. 5.3 Vendor Type

      1. 5.3.1 Organized

      2. 5.3.2 Unorganized

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Al-Futtaim Group

      2. 6.2.2 Dubizzle Motors LLC

      3. 6.2.3 Abdul Latif Jameel Motors

      4. 6.2.4 Yalla Motors

      5. 6.2.5 Al Nabooda Automobiles LLC

      6. 6.2.6 CARS 24

      7. 6.2.7 OLX

      8. 6.2.8 AlTayer Motors

      9. 6.2.9 Arabian Auto Agency

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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GCC Used Car Industry Segmentation

A Used Car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.

GCC Used Car Market is segmented by vehicle type, sales channel, vendor type, and country. Based on vehicle type, the market is segmented into hatchback, sedan, and sports utility vehicles (SUV) and multi-purpose vehicles (MPVs)). Based on sales channel, the market is segmented into online and offline. Based on vendor type, the market is segmented into organized and unorganized, and based on country, the market is segmented into Country United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. For each segment, market sizing and forecast have been done on basis of a value (USD billion).

Vehicle Type
Hatchback
Sedan
SUV and MUV
Sales Channel
Online
Offline
Vendor Type
Organized
Unorganized
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GCC Used Car Market Research FAQs

The GCC Used Car Market is projected to register a CAGR of 8.58% during the forecast period (2024-2029)

Arabian Auto Agency, YallaMotors, AlNabooda Automobiles, AlTayer Motors and Alfuttaim Group are the major companies operating in the GCC Used Car Market.

The report covers the GCC Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

GCC Used Cars Industry Report

Statistics for the 2024 GCC Used Cars market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Used Cars analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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GCC Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)