Even though the oil market is dropping, the Middle East is still booming due to increased government spending and foreign investment. With an increasing population, urbanization, and higher incomes, quality cars are more and more in demand.
Just as an example, Bentley has realized a sales increase of 28% over the past few years, and other high-quality vehicles are performing equally as well. The Jaguar Land Rover increased sales figures by 43% in the first six months of 2013, and Jaguar as a whole realized a sales increase of 26%. Audi sold 9,155 cars in 2012, with a growth of 16.4% in the Middle East.
A Taste for Luxury, and More
In the Middle East, luxury cars are in high demand. So are more moderately priced cars like Toyota and Kia. The strongest market is in passenger cars. They have the highest rate of sales in the Middle East. Pickup trucks are also extremely popular. The Toyota Hilux, which just had a launch in the Middle East, is now the fastest-selling truck in the region.
Consumers in the Middle East are as varied as the vehicles that are available. The demographic is so diverse that the potential for sales of luxury cars, family sedans, SUVs, and pickups is virtually unlimited.
Many people in the Middle East purchase vehicles overseas and import them. What that means is that online auctions are more popular than ever. Buyers everywhere are discovering that they can buy new, nearly-new and used vehicles at a fraction of the cost they’d pay at a dealership.
Usually, the cost of shipping the vehicle is in the flat rate, or available for an additional nominal fee. All that’s needed is for the recipient of the vehicle to pick it up at the port of call and pay any appropriate taxes or duties. Given the amazing savings on an auction car, taxes and duties are usually very easy to absorb.