The automobile industry is becoming increasingly standardized in the UAE which has given a rise to the competition. Major automotive manufacturers in the region are now focusing on assembly operations and basic designs. UAE has been singled out as a profitable spot for manufacturing cars and due to this reason; the automobile industry is flourishing in the region.
UAE is now being considered as the next big profitable location for the manufacturing of automotive components because it spells low costs for the manufacturers worldwide. The component sector is spreading swiftly in the region and so have their imports. UAE is now a fast growing market for the automobile industry and therefore many big names are now planning to shift their manufacturing operations and production base to UAE.
Because of the reduction of trade barrier in the UAE and the cheapest shipping costs, the economy of the region and the automobile sector has seen remarkable changes. UAE now stands as one of the highest consumption markets for the automotive industry even though manufacturing of automobiles in the region is limited to a small number. UAE is one of the biggest automotive consumer markets in the world even though the region does not have a manufacturing plant of its own as yet. The demand of passenger cars and commercial vehicles is higher in UAE as compared to other regions in the world and that is one of the main reasons why foreign manufacturers are more than interested in opening assembly units. Also because of the cheap supply of raw material, free trade zones, links with the automobile giants in the world, logistic systems already in place, and of course the availability of the biggest and the finest container ports in the region, UAE is an ideal and most favorable place to set up a manufacturing plant.
The automobile sector in UAE is on a boom including both budget and luxury cars. Major car manufacturers are challenging each other for dominance in the region and have both new and used cars for sale at highly competitive prices in the UAE than anywhere else. In order to make people aware of their competitive prices, dealers are offering attractive packages on the buying and selling of budget as well as luxury cars in the region.
UAE possesses the greatest number of cars on hold. According to reports, there is a solid increase in the affordability of car prices in the region and attractive deals are being offered by dealers throughout the region.
Because of the above mentioned factors, car prices in the UAE are highly affordable as compared to anywhere else in the world. Also because the region caters to a great number of business investors and tourists every year, the factor of price is kept affordable to attract more business.
