The Aftermath Of The UAE Floods of April 2024: Impact On The Car Industry

In April 2024, the UAE faced unprecedented rainfall, causing significant disruptions across various sectors. Although the country quickly recovered from the storm's damage, the car industry experienced notable changes that persist. This article examines the specific shifts in the UAE car market following the April 2024 floods, supported by detailed data points.

The Storm & Its Aftermath

In April 2024, the UAE witnessed the highest rainfall over a 24-hour period since 1949, with up to 254mm of rain recorded. The floods left thousands of cars inundated, including up to 50,000 cars damaged. The UAE announced an AED 2 billion fund to repair damages. Hatchbacks and sedans were the most affected by the floods. Here’s a detailed guide to help you deal with a car damaged in the floods.?

The Car Market Has Shrunk: Will It Affect Pricing?

The car market has shrunk by approximately 10%, with around 50,000 cars damaged in the floods. This dynamic is expected to result in increased prices for cars in demand, while prices for less popular models will remain stable. Additionally, many of these damaged cars will eventually enter the market for sale. If you're considering purchasing a flood-damaged car, here are some tips to help you make an informed decision.

Shifting Preferences in Vehicle Types

In the wake of the floods, consumer preferences have shifted towards more robust and versatile vehicles. SUVs and pickup trucks, known for their higher ground clearance and off-road capabilities, have seen a significant increase in searches and demand.

• Pickup Trucks: Searches surged by 8.18% immediately after the floods and continued to rise by 11.06% month-on-month in May.
• SUVs/Crossovers: Searches increased by 6.63% immediately after the floods, with an 8.99% rise in May. By July 2024, searches for SUVs were up by 12.86% compared to April.

Increase in Interest for Other Vehicle Types

• Hatchbacks: Despite the damage, hatchbacks saw a 5.09% increase in searches in late April, with a 14.24% rise in July compared to April.
• Vans & MPVs: Searches for vans modestly increased by 1.20% immediately after the floods and by 2.09% by July. However, demand for vans on DubiCars surged by 28.45% in July compared to April 2024.

Slightly Lower Interest in Sedans

Sedans saw a minimal increase in searches (1%) immediately after the floods, with a 3.3% rise by July. However, demand for sedans on DubiCars dropped by 5.20% in July compared to April 2024.

Surge in Overall Demand for New & Used Cars

The need to replace damaged vehicles drove a significant increase in demand for new cars (30.17% in July compared to April 2024). However, demand for used cars decreased by 17.89% in July compared to April 2024.

EVs vs. Petrol

Searches for both petrol and electric vehicles increased after the floods. Petrol car searches rose by 29.08% in July compared to April 2024. Notably, EV searches increased by 11.01% in July 2024, influenced by viral videos showcasing their performance in waterlogged areas. Read this detailed article to know if EVs are better for flooded areas than internal combustion-powered cars.

Rising Demand for Car Rentals

Increased Interest in Car Financing

Rise in Car Insurance-Related Searches

Car Buying Checklist: Post-Flood Edition

When is the Right Time to Buy a Car in the UAE?

Long-Term Trends: Preparing for Future Events

Read the complete article on the impact of the floods on the car market.

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