Chinese car brands gain ground in UAE’s growing used vehicle market

Chinese car brands are rapidly gaining traction in the UAE’s used car segment, reflecting shifting consumer preferences and a broader realignment of market dynamics in the region, reveals Sebastian Fuchs, managing director of AutoData Middle East.

Fuchs, whose firm operates the Vehicle Report platform, a data-driven tool launched last year to boost transparency and trust in used vehicle transactions, says Chinese brands are accelerating in both sales and long-term value retention.

“Chinese brands have notably accelerated, with Jetour growing 150.4 per cent YoY, becoming the 4th most popular brand,” Fuchs told Gulf Business. “Among newer entrants, the Jetour X70S STD stands out with 88 per cent retention after one year and 82 per cent by year three, reflecting growing trust in competitively priced Chinese SUVs.”

In Q1 2025, used car buyer demand has centred around models from 2015–2020, priced between Dhs10,000 and Dhs90,000, with sedans like the Toyota Camry and SUVs like the Nissan Patrol remaining top search choices. However, there’s growing attention on newer electric and hybrid models, especially as more Chinese EVs enter the resale market backed by generous warranties.

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“Electric vehicles have also surged, growing 62.2 per cent YoY in Q1 2025, with Tesla leading the segment at 43 per cent market share,” Fuchs noted. “Consumer confidence is backed by extended warranties, particularly from Chinese brands, offering up to 7-year or 200,000 km warranties.”

Auto lending rates in the UAE have become more attractive, aided by Q4 2024 rate cuts in the US. “Financing has become more attractive, with auto lending rates decreasing approximately 0.5 per cent. Banks have intensified promotions like limited-time 0 per cent financing offers with mandatory 20 per cent down payments,” said Fuchs.

This environment, combined with an influx of residents (Dubai added over 51,000 people in Q1 2025) is pushing demand for affordable mobility options. “The UAE used car market is expected to remain on a strong growth path, driven largely by population growth,” he said.

On pricing and consumer behaviour, the UAE diverges from other GCC markets. “In 2025, UAE GCC-spec vehicles averaged Dhs180,000 with a model year around 2019, compared to Saudi Arabia’s average of SAR130,000 (Dhs127,252) for 2020 models,” said Fuchs. “UAE buyers are more digitally driven, with 83 per cent starting their search online… while Saudi buyers still favour traditional dealerships.”

Looking ahead, Fuchs expects geopolitical trade policies to impact inventory flows. “Recent global developments, such as new US tariffs, could lower used car prices in the UAE by increasing availability and competition among European and Chinese automakers,” he said.

As trust in newer brands and digital platforms increases, AutoData’s Vehicle Report platform is tapping into a more discerning and digitally savvy buyer base. “This behaviour indicates a growing segment of consumers who favour independent sellers and online platforms that offer more transparency and variety rather than the traditional franchise route,” Fuchs added.