Al Futtaim Automotive Reports Strong Growth in UAE Automotive Market

Half-Yearly Results Overview

Al Futtaim Automotive, one of the most stellar automotive groups in the UAE, has disclosed its half-yearly results for the period ending in June, indicating a similar ricochet of the upswing trend for the remaining part of the year.

Market Growth and Sales Performance

Studies reveal that the consolidated growth of the automotive market has reached a climax of 9.3% during this period, with Al Futtaim Automotive registering a 5.7% increment in volume, seizing a solid 35.4% of the automotive market. The group sold a total of 40,542 vehicles during this term, leapfrogging the maiden half-yearly period of 2021 by a stonking 2,190 units.

SUV Market Dominance

Further investigation of the UAE auto sector revealed that SUVs once again stamped out other body styles in terms of sheer sales volumes, acquiring 50.5% of the total passenger car realm. Expectedly, Toyota demolished its competition and reigned as the undisputed king of the SUV segment, clocking 25.2% of the total Utility Vehicle sales during the period. Positive outcomes on all fronts led Japan’s largest automaker to witness an encouraging 11.4% leap in sales and a 0.5% rise in market share.

Other Brands under Al Futtaim Automotive

There was optimism surrounding other brands under Al Futtaim Automotive. The Swedish brand Volvo saw its sales incline by 1.6% year-over-year. Two of the brands of Al Futtaim Trading Enterprises, Dodge and Ram, experienced a steep 14.4% increase in volumes for H1 2022 against H1 2021, with Ram gaining the top spot in the large Ute territory as its share increased by 18.4%.

Electric Vehicle Launches

The newly launched performance electric brand, Polestar, which recently debuted in the market with the Polestar 2, revealed that its stocks were fully sold out, showcasing the interest and faith people have established in electric cars.

Lexus and Luxury Segment Performance

Though things in the luxury car segment were a bit austere, Al Futtaim Group’s Lexus managed to rack up its market share by 1.2% with models such as the IS, LX, and NX contributing significantly.

Trend Towards Hybrid and Electric Cars

A new trend worth highlighting is the increased penetration of hybrid and electric cars, which are being preferred by a larger section of the community. Reasons for this shift include:

• Proliferation in fuel prices
• Awareness of eco-friendly characteristics
• Instant burst of acceleration
• Nimbleness while changing directions
• Quiet operation at any pace

On the EV front, Volvo was on a launch binge as it introduced a duo of entry-level EVs, the XC40 Recharge compact SUV and the C40 Recharge crossover.

Launches and Innovations

Despite the dismal supply chain issues, automotive manufacturers remained at the top of their game with launches such as the Jeep Grand Cherokee L and the Wrangler 392, along with the Volvo C40, Ram 1500 Limited, and the most significant of all, the Polestar 2.

Consumer Preferences and Market Trends

Amazingly, Lexus has been recognized as the most loved brand in the MEA region according to a survey conducted by Talkwalker.

Growth in Industrial Equipment Division

The 6-month period has also been rewarding for Al Futtaim Automotive in the Industrial Equipment or commercial vehicle arena. The division expanded by a whopping 130% in terms of volume year-over-year, covering segments such as construction, manufacturing, logistics, aviation, digital commerce, and public transport.

Truck Segment Performance

In the European truck segment, Volvo Trucks saw a 38% incline in volumes, leading to a 5% improvement in market share.

While Hino Trucks clinched a 3% increase in sales volumes, Eicher Bus saw an astonishing 104% sales increase, surpassing its existing market share by 3%.

Expansion of Car Subscription Services

In the first of its kind car subscription service division—MOOV, the group reported a notable occurrence. Since its arrival, the subscription service has boomed by a steady 70% every month, showcasing consumer interest in this hassle-free service that requires no obligations for subscribers.

Newer and hybrid Toyota models such as the CHR, Corolla Cross, Camry, and the Highlander are available for people to experience hybrid technology. The subscription service app will also broaden its roster by adding EVs to its fleet by the third quarter of this year.

Conclusion

The phenomenal growth recorded by Al Futtaim Automotive, one of the most prominent conglomerates in the UAE, is a testament to the conscious effort it takes to revolutionize itself through innovative processes and products, which people appreciate and are loyal to.