Insights: Why Chinese auto brands are rising in popularity in the UAE

In recent years, we have seen a remarkable shift in the UAE automotive market, marked by the growing influence of Chinese car brands, quickly capturing the attention of an increasingly discerning consumer base.

Chinese automobiles have gained an impressive foothold within a market traditionally dominated by Japanese, European, and American brands. This shift is by no means an accident but a result of these brands’ ability to redefine the concept of value, delivering a blend of style, innovation, and affordability that resonates with today’s UAE consumers.

One key factor driving the popularity of Chinese brands is their fresh approach to design. These automakers have embraced an international aesthetic that appeals to younger buyers who prioritize modern, high-tech, affordable, and stylish vehicles that reflect their tastes and ambitions.

No longer seen as merely functional, Chinese cars are now celebrated for their dynamic designs and their ability to stand out on UAE roads. This evolution in styling goes beyond appearance — it reflects the growing sophistication and capability of these brands, signalling to consumers that their preferences and expectations are at the forefront.

Beyond design, Chinese brands have raised the bar by incorporating advanced features as standard offerings, which are often considered luxury additions to competing brands. Recognizing that today’s drivers expect more from their vehicles, Chinese automakers have responded by including features like blind-spot monitoring, 360-degree cameras, and adaptive cruise control as standard across many models. This dedication to enhancing the driving experience through advanced technology appeals to a new generation of tech-savvy buyers who view these features as necessities rather than optional extras.

In many cases, the value provided by Chinese brands goes beyond cost savings on these features; it reflects a commitment to creating a superior driving experience, enhancing the credibility and appeal of Chinese automakers in the UAE.

Chinese auto brands offer competitive pricing

Perhaps one of the most significant elements underpinning the rise of Chinese car brands in the UAE is competitive pricing, which redefines the market’s value equation.

By delivering high-quality vehicles with advanced features at affordable price points, these brands present a unique proposition that appeals to a broad audience. In a market where consumers are traditionally cautious of untested brands, affordability and extended manufacturing warranties enhance customer confidence and encourage a willingness to try something new.

This pricing strategy resonates particularly well with consumers aged 30 and above who seek affordability, reliability and support from a brand.

Chinese automakers are focused on delivering genuine value, ensuring that owning a premium vehicle remains accessible without compromising quality or service.

To put things into perspective, Chinese brands in the UAE have gained significant market traction, increasing from 8 per cent in H1 2023 to 12 per cent in H1 2024. This rapid growth is a testament to the appeal of these brands. Supported by strategic partnerships, they are committed to enhancing this trajectory.

By expanding showroom networks and strengthening after-sales services, these brands are focused on building lasting relationships with their customers. This commitment to customer satisfaction reflects the growing maturity of Chinese automakers and their dedication to maintaining high standards across all touchpoints, from dealership reputation to warranty coverage.

The future is bright

Looking to the future, we anticipate the market share of Chinese brands in the UAE will continue to grow, with projections of 18- 20 per cent in the coming years. This expected growth aligns with the UAE’s dynamic automotive market, which is set to exceed 310,000 units by the end of 2024.

The UAE’s economic landscape is a testament to its visionary leadership and dynamic policies, which consistently nurture growth across pivotal sectors.

A remarkable example of this forward-thinking governance is the Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum’s initiative for Dubai Municipality and DP World to create the Dubai Car Market — the world’s largest and most sophisticated automotive hub, emphasising the automotive sector’s vital role within the broader economic framework of the UAE.

Green mobility has played a role

Further enhancing this trajectory, the Dubai Green Mobility Strategy 2030 is set to revolutionise the market by advocating for the adoption of electric vehicles, aligning seamlessly with the UAE’s strategic goals to lower carbon emissions and pivot from its traditional oil-based economy through incentives, subsidies, and extensive infrastructure developments.

These progressive moves reinforce the UAE’s dedication to innovation and ecological sustainability and cement its standing as a global powerhouse in the automotive realm.

As Chinese brands continue to win over UAE consumers with stylish designs, advanced features, and competitive pricing, they are well-positioned to play a leading role in the next chapter of the UAE automotive industry.

These brands are not just participating in the market but actively reshaping it, offering vehicles that meet customers’ evolving needs and aspirations, and driving toward a future of incredible potential.

The writer is the director of Chery UAE at AW Rostamani Group.