Chinese car brands are significantly increasing their presence in the UAE’s used vehicle market, reflecting changing consumer preferences and a shift in market dynamics, according to Sebastian Fuchs, managing director of AutoData Middle East. His company operates the Vehicle Report platform, which was launched last year to enhance transparency and trust in used vehicle transactions.

Fuchs highlighted that Chinese brands are not only boosting sales but also enhancing their long-term value retention. He stated, “Chinese brands have notably accelerated, with Jetour growing 150.4 percent year-on-year, becoming the 4th most popular brand.” He pointed out that the Jetour X70S STD stands out with impressive retention rates of 88 percent after one year and 82 percent after three years, indicating a growing trust in competitively priced Chinese SUVs.

In the first quarter of 2025, the demand for used cars has focused on models from 2015 to 2020, priced between Dhs10 000 and Dhs90 000. Popular choices among consumers include sedans like the Toyota Camry and SUVs such as the Nissan Patrol. There is also increasing interest in newer electric and hybrid models, particularly as more Chinese electric vehicles (EVs) enter the resale market with generous warranties.

Fuchs noted the surge in electric vehicle sales, which have increased by 62.2 percent year-on-year in Q1 2025, with Tesla leading the segment with a 43 percent market share. He mentioned that “consumer confidence is backed by extended warranties, particularly from Chinese brands, offering up to 7-year or 200 000 km warranties.”

The auto lending landscape in the UAE has also become more appealing, thanks to rate cuts in the US during Q4 2024. Fuchs explained that “financing has become more attractive, with auto lending rates decreasing approximately 0.5 percent.” Banks are offering enticing promotions, including limited-time 0 percent financing with mandatory down payments of 20 percent.

This favorable environment, along with an influx of new residents—over 51 000 in Dubai in Q1 2025—is driving the demand for affordable mobility options. Fuchs mentioned that “the UAE used car market is expected to remain on a strong growth path, driven largely by population growth.”

When it comes to pricing and consumer behavior, the UAE market stands out from other Gulf Cooperation Council (GCC) markets. Fuchs pointed out that “in 2025, UAE GCC-spec vehicles averaged Dhs180 000 with a model year around 2019, compared to KSA’s average of SAR130 000 (Dhs127 252) for 2020 models.” He noted that UAE buyers are more digitally inclined, with 83 percent starting their search online, whereas buyers in Saudi Arabia still prefer traditional dealerships.

Looking forward, Fuchs anticipates that geopolitical trade policies will affect inventory flows. He remarked that “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.”

As trust in newer brands and digital platforms grows, AutoData’s Vehicle Report platform aims to cater to a more discerning and digitally savvy buyer population. Fuchs concluded that this trend reflects a rising segment of consumers who prefer independent sellers and online platforms that provide greater transparency and variety compared to traditional franchise dealerships.