UAE Market Report – July 2012
Keep Calm! We’re on the path to recovery… maybe
By Shahzad Sheikh
We have the latest monthly report from Autodata Middle East, and the prognosis is good according to market guru, Bill Carter (Head of Valuations). Citing the increased sales figures for the first half of 2012, being released by manufacturers, particularly premium brand car makers, for the region he says: “This should not come as too much of a surprise as the UAE as a whole is in a buoyant mood.”
On the question of whether this is a “true recovery or just another bubble waiting to burst” he says: “I believe it is a recovery of sorts. It may not be back to pre-2008 levels but it is certainly better than it has been for the last three years. The general “feel good factor” is in evidence and I think that people are determined to put the past behind them and get on with living.”
Although there is certainly more caution amongst consumers when making a big purchase such as a car, Carter adds: “If this trend continues, and there is no indication that it will not, we should be on course for a very good year for car sales.”
The only issue he foresees is whether supply can keep up with demand. Last year this was a massive issue, particularly for Japanese products due to tragic natural disasters, but this year things seem to be getting back on track.
“It is worth remembering that buyers in the premium sector tend to be discerning and are prepared to wait for the car they want.” However he warns that: “In the case of the mainstream buyer this is not the case and they will switch brands without too much thought as long as the deal is right.”
Keep it in a Camry
This month Autodata is highlighting the workhorse of the region, the Toyota Camry as a good bet for low depreciation and to keep your money safer for longer.
“It is the first choice of the taxi sector as well as the Rental and Leasing operators. Its reputation built on the high number of kilometres, over 800,000 in some cases, is second to none in this region.”
For a base model Camry clocking up the standard average of 24,000km a year, the first year depreciation is shown as remarkably little at around 12%, with 20% over two year and 24% over three.