Chinese Cars Gain Ground in UAE

The Rise of Chinese Cars in UAE: Trump's Tariffs Chart a New Path

There is a significant shift occurring in the global car market: while the United States implements new tariff measures, the Middle East and Africa—especially the UAE—are increasingly becoming key export markets for Chinese cars. According to the latest analyses, the number of Chinese-manufactured passenger cars in the region could triple in the coming years, with market share expected to reach 34% by 2030, up from 10% in 2024.

What's Driving the Growth?

The backdrop to this change is China's extraordinary increase in car exports: in 2024, China exported 6.4 million passenger cars, a 23% increase over the previous year and more than 50% higher than Japan's exports. Despite global trade wars, the Chinese car industry has strengthened and is finding—and seizing—new markets in the Middle East and Africa.

The UAE is in a particularly advantageous position: due to tariffs, many cars intended for the U.S. market are being redirected. The GCC countries—especially the UAE—have excellent logistical and commercial capabilities, making them natural targets for global car manufacturers.

Cheaper Cars, Wider Selection?

Shoppers in the region are optimistic: many expect that due to U.S. tariffs, the prices of Chinese cars redirected to the UAE will decrease. Because of the larger stock, not only prices may become more favorable, but the variety of models—particularly in the electric vehicle (EV) market—could also expand.

Local car dealers confirm this trend: the market is open to Chinese brands, which are gaining in popularity with consumers, thanks to their favorable price-to-value ratios and high technological standards. Due to the new tariffs, models that were previously available only in limited numbers might become more accessible.

Technological Advantage and Smart Driving

Chinese manufacturers not only excel in price competition but also in technological innovation. The spread of advanced driver-assistance systems (ADAS) in China is faster than in, for example, the United States: in 2023, almost 60% of new cars were equipped with Level 2 or higher systems.

This technological advantage aligns well with the UAE's future-oriented transportation strategy, which prioritizes sustainability, electromobility, and digitalization. Therefore, Chinese brands are not just offering competitive products but also solutions that fit the region's long-term goals.

What Does the Future Hold?

The growth of the Chinese car industry doesn't rely solely on exports. Domestic demand is also strengthening: by 2025, it's expected to reach 26.8 million units, reflecting a 4% increase. This could further stimulate production and bring new models to international markets, including the UAE.

Based on current trends, the UAE will remain a strategically important market for Chinese manufacturers. Despite tariffs and global trade tensions, Chinese cars are carving out an increasingly larger slice of the global vehicle market, and the Middle East could be one of the main beneficiaries of this process.

(The source of the article is the latest report from AlixPartners.)