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UAE automotive market grew by 19.7% in 2010 to $11.1 billion

The UAE automotive market grew by 19.7% in 2010 to $11.1 billion up from $9.2 billion in 2009. The UAE trade in small passenger and luxury cars grew by 24.4% to $10.6 billion in 2010 compared to $8.5 billion in 2009. UAE’s exports of vehicles with more than 9 seats went up by 32.4% to $181.7 million up from $137.2 in 2010 while its imports of this category decreased by 48.9% to $312.1 million down from $611.1 million in the previous year. The value of imports of small passenger and luxury cars also grew by 40.8% to $7.3 billion up from $5.2 billion in 2009. 96% of these imports came from ten countries led by Japan which accounted for 46% of the total value. predicted to grow by around 8% annually over the next four years. It said car sales in the UAE would see a compound annual growth rate (CAGR) of 8% to 2014, while total re-exports are expected to increase at a CAGR of 5% in the same period. Domestic auto sales: The volume of car sales in the UAE in 2010 increased by 10% to $42.4 billion compared to $38.5 in 2009, thanks to the country’s population growth, the rising living standards as well as the GDP per capita, the study says citing a recent report by Business Monitor International. The automotive sector in Dubai’s Jebel Ali Free Zone, or Jafza, comprises of more than 500 companies, including those specialising in car products like tyres and tubes, workshop equipment, batteries, parts and systems, repair and maintenance and accessories. Global auto sales: Japan’s domestic sales of new cars, trucks and buses dropped 37.0% from a year earlier in March, as the devastating earthquake and tsunami on March 11 disrupted domestic production for all automakers and cut off vehicle supplies to dealers, according to the Japan Automobile Dealers Association. The massive quake and tsunami hit auto assembly and parts manufacturing plants in northeastern Japan, causing parts shortages for domestic and some overseas car makers. Toyota was hit the hardest, showing a 46% drop in sales -- a decrease that did not include its luxury Lexus brand. Nissan sales skidded 38%, while Honda saw its figures slashed by more than a quarter at 28%. Also, Japan’s core private-sector machinery orders unexpectedly fell 3.3% in April from March, marking the first drop in four months as the quake ravaged supply chains and led to shutting down a large number of factories. In China, car sales rose 6.5% to 1.35 million units in March, recovering from the lowest growth rate in two years in February, according to the official China Association of Automobile Manufacturers (CAAM). That compared with 967,200 units sold in February, which was up 2.6 per cent from a year earlier, according to data provided by CAAM. In South Korea, Kia Motors Corp., the second-largest automaker, set a new quarterly sales record in the first three months of the year amid growing overseas demand for its vehicles. According to data released by Kia Motors, the company sold 565,355 vehicles in the first quarter of 2011, up 20.2% from the same period last year. Hyundai’s global sales grew 9.7% year-on-year in April to 340,647 units. Ssangyong Motor Co., South Korea’s smallest automaker revealed that its sales surged nearly 47% on-year in April on strong exports. Output by South Korea’s five automakers in May rose 10.5 percent from a year earlier on strong overseas shipments. In France, car sales fell 11.2 percent in April while German automaker Daimler’s sales dropped 25% year on year in November 2010. UAE’s auto imports and exports According to The Global Enabling Trade Report 2010, the United Arab Emirates led the region at a very strong 16th position, ahead of the United Kingdom, Chile, and the United States. The country improved by two positions over the previous year by building on its strengths. Clearance of goods at the border, already efficient in previous years, has become even easier in international comparison (12th). In terms of the availability and quality of transport infrastructure, the UAE moves up to be among the best countries in the world (4th). Another distinct advantage, high levels of physical security (4th), has been equally strengthened. In terms of the efficiency of import-export procedures, the UAE ranked 9th globally. The rankings encourage international companies to make the UAE a base for expanding their operations into the Middle East and North Africa (MENA) region benefiting from the country’s high quality transport infrastructure. The total volume of the UAE’s automotive trade grew by 19.7% year on year in 2010. The country’s imports of all types of cars increased by 31.3% while exports held steady in 2009 and 2010. UAE’s small and luxury auto imports 69.8% of UAE’s exports and re-exports of small passenger cars went to ten countries led by Iran with 22.6%, representing a growth of 15.2% from 2009, followed by Iraq with 12.1% (down by 5.9% from 2009. In 2010, new countries entered the list of the UAE’s largest trading partners and China came in the 4th place (growth by 220%), Kazakhstan in the 6th place (growth of 138%), Russia in the 8th place (growth by 220%), Nigeria in the 9th place (growth by 92%). Compared to figures of 2009, the UAE’s exports and re-exports of small passenger cars to Saudi Arabia dropped by 41% and to Libya by 36%. UAE’s exports of motor vehicle with more than 9 seats The UAE’s exports of motor vehicle with more than 9 seats in 2010 grew by 32.4% to $181.7 million up from $137.2 million in 2009. Iraq took the lion’s share of 19.9%, followed by Iran (11.2%), Ethiopia and Nigeria (10.2% each), Tanzania (7.6%), Kenya (4.7%), Angola (4%) and China (10.2%). China and Oman went on the list of the UAE’s largest trading partners in 2010 with exports to the two destinations growing by 993% and 620% respectively. UAE’s luxury and small passenger cars imports Car franchise holders in the UAE, in the past few months, started to take precautions and cut re-exports to regional markets due as supply disruptions hit the market in the wake of Japan’s earthquake in March 2011. Japanese auto spare parts manufacturers were also affected by the disruptions. Data revealed that, prior to the disaster, UAE imports of luxury and small passenger cars grew by 41% thanks to the growth of the population. Japan’s exports to the UAE stood at $2.3 billion in 2009 and grew by 47% in 2010 to $3.4 billion. UAE’s imports from Mexico, Taiwan and South Korea surged by 450%, 443% and 104% in 2010. UAE’s imports of motor vehicles with more than 9 seats: UAE’s imports of motor vehicles with more than 9 seats fell by 49% from $611 million in 2009 to $312 million in 2010 while imports of luxury and small passenger cars increased by 41 over the same period. Japan again had the lion’s share with 38.2% followed by the Netherlands with 14.1% and Turkey 11.4%.

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