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Pre-Owned Car Market Thrives in the UAE, but Interest in EV

The used car market in the UAE is prospering, with considerable increase seen, particularly among millennial car buyers.

The pre-owned car business in the UAE is thriving, with strong growth observed, especially among millennial car buyers, according to Abhinav Gupta, CEO of the Gulf region for Cars24. For every new car sold in the UAE, three pre-owned vehicles are purchased.

Shift Towards Electric Vehicles (EVs):

Interest in driving electric vehicles (EVs) is steadily gaining momentum among motorists in the UAE. 

The country has set ambitious goals to increase the share of electric vehicles to 50% of total vehicles on the roads by 2050.

There has been a notable increase in female drivers interested in purchasing pre-owned cars. 

In the first half of 2023, the number of female buyers on the Cars24 platform increased by 15%, surpassing the 13% rise in male buyers.

Omnichannel Experience:

While online platforms are popular for car searches, many customers still prefer to visit physical showrooms and test-drive vehicles before purchasing. 

To cater to this preference, Cars24 expanded its operations in Dubai, Sharjah, and Abu Dhabi to provide an omnichannel experience, allowing customers to choose between online and on-site services.

Growing Interest in EVs:

Rising fuel prices and raising awareness of environmental concerns have contributed to the growing interest in electric cars. 

Online searches for electric vehicles on the Cars24 platform saw a substantial 60% increase in the first half of 2023 compared to the second half of 2022.

Plans for Full-Stack EV Solutions:

Cars24 has significant plans to offer comprehensive EV solutions to customers, covering everything from procurement to refurbishment. 

The company is investing in this area to cater to the rising demand for electric mobility.

Investment and Expansion:

Cars24 has ambitious expansion plans in the GCC region and aims to invest $100 million over the next few years to become the leading tech enabler in the pre-owned car industry. 

The company anticipates breaking even in UAE business operations by the end of 2023, marking a significant milestone.

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