The recent heavy rains in Dubai have caused significant disruptions to the automobile sector in the UAE. A study conducted by market and consumer intelligence firm NIQ-GfK revealed that 66 per cent of motorists in the country are currently repairing their rain-damaged cars, with plans to purchase a new vehicle in the future. About 22 per cent of car owners are considering buying a new vehicle after assessing the damage caused by the rains.
Rahul Dixit, the consumer and marketing insights commercial leader at NIQ-GfK, stated that the heavy rains in Dubai led to many people being unable to reach dealerships or service centers, impacting car sales and maintenance schedules. Additionally, nearly 32 per cent of respondents reported that their vehicles were stuck due to water logging on roads or in parking lots. A study by Guy Carpenter estimated that 30,000 to 50,000 vehicles were damaged during the floods in mid-April, with only vehicles covered by comprehensive insurance policies eligible for coverage.
Abhinav Gupta, CEO for the Gulf region at Cars24, mentioned that 20 to 25 per cent of submerged cars are likely to have serious problems or damages. He also stated that owners will retain repairable cars and sell them later, with damaged cars expected to re-enter the market within the next 6 to 12 months. Vehicles that were submerged in basement parking areas of buildings are still being extracted by owners this week.
The NIQ-GfK study, conducted online in Dubai, Abu Dhabi, Sharjah, and other Northern Emirates, highlighted the impact of natural disasters on the auto sector. It involved 1,225 participants aged between 18 to 55 from various ethnic backgrounds. The study revealed the challenges faced by car owners due to the heavy rains and the subsequent damage to their vehicles, leading to repairs and future plans to purchase new vehicles.
As the automobile sector in the UAE deals with the aftermath of the heavy rains in Dubai, car owners are focused on repairing their rain-damaged vehicles and considering future purchases. The impact of the floods on the sector has caused disruptions in car sales and maintenance schedules, with many vehicles stuck due to water logging. Insurance coverage for damaged vehicles is limited to those with comprehensive policies, leaving out vehicles covered by third-party liability policies.
Abhinav Gupta from Cars24 predicts that a significant percentage of submerged cars will have serious problems or damages, with owners likely to retain repairable cars for future resale. The recovery process for damaged vehicles is ongoing, with vehicles submerged in basement parking areas of buildings being slowly extracted by owners. The NIQ-GfK study reflects the sentiment of car owners in the UAE, showcasing the challenges faced by motorists in dealing with the aftermath of the heavy rains and the impact on the auto sector.
