Chinese Auto Brands Disrupt UAE Market with Competitive Pricing and Growing Market Share

Chinese automakers are rapidly reshaping the UAE car market, with their market share growing from 8% to 12% in just a few years. This surge is changing how dealerships price their vehicles, as buyers increasingly prioritize value and quality over brand recognition. According to Michel Ayat, CEO of AW Rostamani Group, "UAE’s new generation of car buyers is more focused on affordability and quality rather than the badge on the car."

The influence of Chinese brands extends beyond their own price points, pushing even non-Chinese manufacturers to adjust pricing strategies to remain competitive. While luxury brands and high-end SUVs remain largely unaffected, mainstream automakers and even EV sellers are feeling the pressure to keep up. The UAE now hosts over 20 Chinese auto brands, including Geely, Changan, Chery, MG, and EV-focused names like Zeekr and BYD.These brands have gained traction through aggressive promotions, including attractive financing offers and after-sales benefits. Their rising popularity has forced dealerships to include Chinese brands in their portfolios to stay relevant. "If we don’t get our pricing right, it can result in lost sales to a Chinese competitor," admitted one dealership source.

New car sales in the UAE are set to close 2024 with an estimated 310,000 units sold, compared to 273,000 in 2023. This growth marks a full recovery from the disruptions of 2020 and highlights the ongoing demand for new cars, supported by price stability and a wave of new residents choosing new vehicles over pre-owned ones. Chinese automakers are not just a passing trend in the UAE—they are driving a fundamental shift in the market, challenging traditional players and reshaping the landscape with their competitive pricing and customer-focused incentives.