UAE Car Market Trends 2025: What Buyers Loved

Buying a car in the UAE has changed dramatically over the past few years. UAE Car Market Trends 2025 reveal that buyers are no longer making quick, brand-led decisions based purely on function or habit. Instead, they are comparing more, researching deeper, and choosing vehicles that reflect their lifestyles, values, and long-term needs.

Electric cars are gaining ground, affordability is back in the spotlight, and demand for both new and used vehicles is rising. Most importantly, UAE buyers are becoming more informed, more selective, and more future-focused,  a shift that is reshaping the entire market.

This guide breaks down what changed in 2025, why it matters, and how buyers can make smarter decisions going forward.

Understanding the Shift: Why the UAE Car Market Changed in 2025

The UAE automotive market saw significant growth in 2025, becoming increasingly competitive and driven by consumer preferences.

In the first half of the year alone, more than 157,000 new vehicles were registered, marking an 11% increase compared to 2024. SUVs and utility vehicles continued to lead demand, reflecting buyers’ preference for space, comfort, and versatility.

Source: UAE Ministry of Economy (Industry Market Reports 2025) | Federal Competitiveness and Statistics Centre (FCSC)

Here’s a visual snapshot of the trends shaping buyer decisions in 2025

1. Market Growth and Competitive Landscape

In 2025, growth in the UAE car market wasn’t just about higher sales numbers; it was about how competition evolved. Established brands held their ground, but new challengers and emerging technologies began reshaping buyer expectations. The result was a more competitive, choice-driven market than ever before.

a. Legacy Brands: Still Trusted, but No Longer Alone

Well-established brands like Toyota maintained their strong market presence throughout the year. Backed by proven reliability, extensive dealer networks, and high resale value, these brands continued to attract buyers, even if growth remained steady rather than explosive.

Trust still matters in the UAE market, but it’s no longer the only deciding factor.

b. New Challengers Change the chat

One of the biggest stories of 2025 was the rapid rise of Chinese automakers. Brands such as Jetour and Geely recorded strong growth, with Jetour’s registrations jumping by an impressive 163.9%.

Source: GlobeNewswire (UAE Used Car Market Trends)

For many UAE buyers, these brands now represent serious value, offering modern design, advanced features, and competitive pricing that directly challenge traditional players.

c. EV Brands Push Closer to the Mainstream

Electric vehicle manufacturers also gained momentum. Tesla and BYD continued to build interest in hybrid and fully electric models, supported by expanding charging infrastructure and growing confidence in EV ownership.

What once felt like a niche option is now becoming a practical choice for everyday driving.

All of these shifts have created a more dynamic and balanced market. Buyers now enjoy more choice, better value, and greater flexibility when selecting a vehicle. In 2025, purchase decisions are increasingly shaped by performance, technology, sustainability, and overall value, rather than brand loyalty alone.

2. What Buyers Loved: SUVs and Premium Utility Vehicles

Consistent with GCC preferences, SUVs continued to dominate the UAE consumer landscape in 2025. Large, rugged SUVs that balance prestige, capability, and comfort remained top sellers among both local and expatriate buyers.

 The Nissan Patrol stands out as the “king of UAE roads,” combining power, luxury, and adaptability to both city driving and desert terrain. The Toyota Land Cruiser and Toyota Prado also held strong shares due to legendary reliability and broad service networks.

This trend is not limited to new purchases; used‑SUV demand skyrocketed as well, with buyers seeking enduring value and resale potential in high‑demand models.

Why do SUVs lead?

• Capable of the UAE climate and terrain
•  Preferred family and lifestyle vehicle
• Substantial residual value in resale markets

3. Electrification and Green Choices Gaining Ground

In early 2025, EV sales jumped by more than 60%, highlighting a massive shift towards electric mobility in the UAE. What was once seen as a niche market is now rapidly becoming a mainstream option. This surge in interest is driven by an expanding network of charging stations, improving government incentives, and growing consumer confidence in electric vehicles as a practical, everyday transportation solution.

Source: YouGov (UAE Next-Gen Car Outlook 2025)

Why Buyers Are Choosing EVs?

While electric and hybrid cars still represent a smaller share of overall car sales than petrol vehicles, the trend is undeniable. Buyers are increasingly drawn to:

• Lower fuel and running costs

• A lighter environmental footprint

• More innovative tech and better connectivity

What’s Changing in the EV Market?

The EV market is also diversifying, with established automakers and new, electric-first brands rolling out a wider range of vehicles. These models, ranging from plug-in hybrids to fully electric options, are designed to meet the needs of both Emirati and expat buyers. Green technology no longer requires compromise; it offers modern, efficient, and future-ready solutions.

4. Affordability and the Booming Used Car Market

Beyond new-car sales, the used-vehicle market soared in 2025. Analysis indicates a 42% increase in demand compared to 2024, highlighting that many buyers viewed pre‑owned cars as innovative alternatives rather than compromises.

Source: MarknTel Advisors (Used Cars Market in UAE)

Why this surge? Several factors played into it:

• Affordability: Used cars offer premium features at lower price points, a significant appeal for mid‑income and value‑conscious buyers.

• Competitive financing: Banks and dealers increasingly provide flexible credit options, making ownership easier.

• High resale value: Certain models, particularly Japanese and luxury SUVs, retain strong resale prices, encouraging buyers to consider the used channel for better long‑term value.

In fact, market reports project the UAE used-car sector’s valuation in 2025 to be well into the tens of billions of USD, reflecting its role as a mainstream buying choice.

5. Digital Buying Experiences and Online Platforms

Today’s UAE car buyers are doing most of their homework before they ever step into a showroom. Screens come first, showrooms come later. From comparing models to checking prices and financing options, trust is increasingly being built online.

AI-powered car marketplaces, detailed online comparisons, and certified pre-owned programs have all played a big role in this shift. Together, they’ve made the buying process more transparent and more reassuring by improving transparency, cutting down decision time, and giving buyers greater confidence in their choices.

For younger, tech-savvy Emirati and expat buyers in particular, digital car buying is no longer a bonus feature; it’s the expectation. A smooth online experience has become just as important as the car itself.

6. Future Outlook: Innovations and Next‑Gen Features

Looking ahead, UAE car buyers’ love for innovation and future‑ready technologies isn’t fading; it’s accelerating.

Two standout developments include:

• Advanced connectivity and safety tech: Buyers increasingly value intelligent systems like adaptive cruise control, advanced driver assistance, and connected vehicle platforms.

• Autonomous mobility explorations: Experimental services like fully driverless ride options (e.g., robotaxis) signal a long‑term shift toward autonomous transport solutions, reflecting the UAE’s smart mobility ambitions.

These innovations will continue shaping choice sets, potentially narrowing the gap between luxury features and mainstream adoption as costs fall and infrastructure improves.

Final Thoughts

The UAE Car Market Trends 2025 are defined not just by growth, but by discernment. SUVs remained dominant, EVs gained credibility, used cars shed their stigma, and digital platforms reshaped how buyers shop. While established brands still lead, new challengers are rewriting expectations.

Looking ahead to 2026, one thing is clear: UAE buyers are no longer just purchasing cars; they are choosing mobility solutions that align with their budgets, lifestyles, and future goals.

For deeper insights, expert reviews, and guidance on choosing the right car for your needs, explore the latest resources on ArabWheels Blogs and stay ahead of the market.