UAE sees higher Chinese car sales as China faces decline at home

DUBAI — The United Arab Emirates (UAE) is seeing increasing sales of Chinese cars in 2023 even as local demand in China falls, according to an industry report released Monday. China relies on exports for the majority of its car sales and has the Middle East, including the Gulf and Israel, in its crosshairs.

Yalla Motor, an online car dealer, said Chinese state-owned MG sales from January to March have increased almost 86% year-on-year, the Abu Dhabi-based The National reported. The Shanghai-based MG was Yalla Motor’s fourth-highest-selling brand in the UAE in the first quarter of the year. Major Japanese carmakers Toyota and Nissan were the highest selling, followed by South Korea’s Hyundai.

The multinational Chinese automotive group Geely, distributed by AGMC in the UAE, has sold more than 1,000 units since setting up in the Emirates three months ago, it told Al-Monitor in a statement. Geely also set up a showroom in the northern emirate of Sharjah and plans to open another in the country’s capital Abu Dhabi toward the end of the year.

The Chinese electric vehicle (EV) brand BYD partnered with the UAE’s Al-Futtaim Electric Mobility Company in March of this year. It is the first country in the Middle East to deal in BYD vehicles, according to a press release from the global car manufacturer.

While Chinese vehicle presence and sales seem to be rising in the UAE, China itself witnessed a decline last month. Passenger vehicle sales shrunk 2.9% in June from the same time last year, with a total of 1.91 million units sold, according to the China Passenger Car Association's Monday report. This dip is the first contraction since January despite overall sales in the first half of the year advancing 2.5% to 9.65 million units.

Chinese vehicle manufacturers continue to rely on overseas markets to maintain their sales growth. Foreign market exports accounted for 56% of Chinese vehicle sales in June, and the Middle East is a focus of interest.

The EV division of Zhejiang Geely Holding Group Co. partnered with Israeli distributor Union Group to market and sell its Zeekr 001 sedan and Z sport utility vehicle, reported Bloomberg on Monday, citing a company memo. Zeekr vehicles will be available in Israel from the fourth quarter of this year.

Zeekr is assessing other markets in the Middle East, reported Bloomberg.

Israeli makers are also looking to distribute in the UAE. Israeli micro-mobility company Mia Dynamics and Mega Global Group signed an agreement for orders of $1.5 million for the first year, according to The Jerusalem Post.

The agreement will allow for the Mia Four personal mobility device to be marketed in the UAE and is set to be renewed if goals are reached.

Electric vehicles are part of the UAE's green mobility goals, which aim to increase the number of such cars to 50% of total vehicles by the year 2050.