Regenerative Braking System

Regenerative Braking System

The market for used cars refers to the buying and selling of previously owned vehicles. This dynamic sector is influenced by various driving factors. Economic conditions play a pivotal role, as consumers often turn to used cars during periods of financial uncertainty to save on costs. Additionally, technological advancements contribute to the market's evolution, with the availability of advanced features in newer models prompting individuals to trade in their existing vehicles.

The MENA Uses Car Market is expected to grow at a strong CAGR of 6% during the forecast period (2023-2030). The MENA region has been experiencing significant urbanization over the past few decades, Consumer preferences for sustainability and a growing awareness of environmental impact have also fueled the demand for used electric and hybrid cars. Moreover, the depreciation of new cars within the first few years makes used cars an attractive option, providing cost-conscious buyers with reliable and affordable alternatives. The market's trajectory is further shaped by regulatory changes, financing options, and the overall health of the automotive industry. For instance, Autorola A/S and Al-Futtaim Automotive have come together to launch a new joint venture – Autorola Middle East & North Africa (Mena) Holding Limited – to reinvent the region’s B2B used-car market. This joint venture will introduce an integrated and end-to-end digital platform for the industry.

• Based on the vendor type, the market is segmented into organized and unorganized. Organized segment held a significant share of the market in 2022. Organized vendors bring a structured approach to the buying and selling process, offering potential buyers a sense of trust through detailed vehicle histories, thorough inspections, and often, warranty options. This trend is particularly appealing to consumers seeking a hassle-free experience and assurances regarding the condition and legitimacy of the used cars they are interested in purchasing. As organized vendors gain prominence, they contribute to the maturation and professionalization of the MENA used car market.
• Based on the Vehicle Type, the market is bifurcated into hatchback, sedan, and SUVs. The SUVs segment is expected to grow with a significant CAGR during the forecast period (2023-2030). There has been an uptick in demand for pre-owned Sports Utility Vehicles (SUVs) across the Middle East and North Africa (MENA) region recently. This growth can be attributed to various factors such as changing consumer preferences, economic considerations, and environmental concerns. Many car buyers opting for second-hand vehicles have found them appealing due to their affordability, reliability, lower maintenance costs, and reduced carbon footprint compared to brand new ones. Additionally, several leading automotive companies now offer certified pre-owned programs that provide peace of mind with extended warranties, thorough inspections, and guarantees on mileage and condition. With this shift towards sustainable mobility solutions gaining momentum, we might see even more customers turning toward previously owned high-quality SUVs in future years.
• For a better understanding of the market adoption of used car market, the Middle East market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Kuwait, Egypt, and the Rest of MENA. The adoption of used cars in Saudi Arabia has witnessed significant growth in recent years. This shift can be attributed to various factors, including economic considerations and changing consumer preferences. As the cost of living rises and individuals seek more economical transportation solutions, the appeal of used cars becomes evident. Moreover, the Kingdom's efforts to diversify its economy and reduce dependence on oil have spurred a growing middle class, contributing to increased demand for affordable yet reliable transportation. The expanding availability of a wide range of used cars, coupled with advancements in online platforms facilitating easy transactions, has further fueled this trend. Additionally, as consumers become more environmentally conscious, the sustainability aspect of extending the lifespan of vehicles is gaining traction. The confluence of economic, social, and environmental factors is driving the growing adoption of used cars in Saudi Arabia, reshaping the automotive landscape in the region.
• Some of the major players operating in the market include Carmudi , Yallamotor., Dubicars.com, AutoTraders, Reserved Motory., Expat Motors, CarSwitch, KAVAK., CarReport & Al-Futtaim.