Chinese marques take roughly 17.5% of UAE new-car market as BYD and dealers scale showrooms and fleets

Chinese-made cars have moved from a marginal presence to a more solid footprint in the UAE’s new-car market. According to estimates cited by Al‑Futtaim Automotive, Chinese marques accounted for roughly 15–20% of first-half 2025 new-car sales — an average of about 17.5% — a shift industry executives say reflects both rapid product improvement and a concerted push by dealers into sales and after‑sales support. That’s a notable swing.

Mohammad Qasim, general manager of retail at BYD‑Al‑Futtaim, told Al‑Ittihad that the change is the result of “massive investments” by Chinese manufacturers in research and development and a sustained focus on electrified powertrains, design and perceived value. He added that Chinese cars are “no longer just an economical choice; they now represent real value that combines advanced technology, high quality, and contemporary design, all at competitive prices.” He pointed to BYD’s strong performance in the UAE’s EV market — BYD’s Han, for example, has been sold mostly as a battery electric model this year, with roughly 65% of its sales recorded as EVs, he said — and the firm’s recent launches of both fully electric and plug‑in hybrid models. Honestly, it’s a telling trend, isn’t it?

Al‑Futtaim itself is tying resources to the trend. The group has opened a second BYD “discovery” showroom on Sheikh Zayed Road in Dubai, featuring interactive displays and charging infrastructure, and told investors it plans more showrooms and after‑sales workshops nationwide. The distributor also announced a corporate fleet deal to supply 100 BYD Atto 3 EVs to UAE telecom and technology group e&, underscoring rising institutional as well as retail demand. Al‑Futtaim says those moves are designed to strengthen customer confidence by knitting sales with service, charging and training — factors that, dealers argue, are decisive for buyers of new electric models.

The expansion by BYD and other Chinese brands sits inside a wider regional acceleration. Trade and media coverage has noted an influx of Chinese EV brands such as Geely, MG and Deepal into the UAE market, supported by competitive pricing, rapid model introductions and increasingly sophisticated connectivity and safety features. Consultancy forecasts cited by regional press suggest Chinese manufacturers could capture a substantial share of vehicle markets in the Middle East and Africa by 2030 if current momentum continues.

Technology developments from manufacturers bolster the pitch. Reuters reported that BYD plans to introduce a next‑generation version of its Blade battery in 2025, a move the company says will raise energy density and safety while improving driving range and cost competitiveness. Reuters also reported in March 2025 that BYD is targeting roughly 800,000 overseas sales in 2025 as part of an aggressive international expansion that includes plans for local assembly in some markets to limit tariffs and speed distribution. Those ambitions, if realised, are likely to keep pressure on global incumbents and support faster rollout of models and parts logistics in priority countries such as the UAE.

Yet the market shift is not only about product advantage. Government policy and infrastructure remain critical. PwC’s eMobility Outlook 2024 — UAE edition flags both opportunity and constraint: Dubai’s Green Charger initiative and DEWA’s target of 1,000 public charging points by 2025, together with Abu Dhabi’s longer‑term charger ambitions, are important enablers, but gaps in coverage and operational issues such as battery performance in high temperatures still require attention. The PwC report argues that coordinated public‑private action is essential to meet electrification goals and to convert interest into sustained adoption beyond the early adopters.

That combination of industry momentum, dealer activity and public policy helps explain the buoyant forecasts. Al‑Futtaim and BYD executives expect Chinese brands’ market share in the UAE to climb further in 2025, with some scenarios envisaging year‑on‑year growth of more than 20% from an expanding base. But those projections rest on continued improvements in charging infrastructure, after‑sales capacity, and the pace at which consumers accept new brands alongside established players. Time will tell, as they say.

The changing dynamic also raises questions for legacy manufacturers. Analysts warn that incumbents will face intensifying competition on price, technology and local presence; some traditional brands are responding with new EV models and local dealer investments, while others are retooling their product mix. For consumers, the marketplace now offers a broader set of choices — from luxury electric sedans to mass‑market crossovers — but purchase decisions increasingly hinge on total cost of ownership, warranty and service networks, and the practicalities of charging. It’s not just about sticker price, you know.

For now, the UAE’s market looks set to become more plural in origin: Chinese brands have moved beyond price‑led entry to occupy substantive space in the country’s EV transition, supported by dealer networks such as Al‑Futtaim’s and by corporate fleet deals that normalise electrified transport. Whether that momentum converts into durable long‑term market share will depend on continued investment in batteries, charging, parts and training — and on whether consumers and large fleets conclude that Chinese models can match the reliability and resale characteristics of established rivals. As Mohammad Qasim told Al‑Ittihad, the combination of model breadth, technology such as Blade batteries and local service provision is central to converting curiosity into confidence; independently verifiable improvements in infrastructure and product longevity will determine how far that confidence goes. It’s pretty interesting, right?

Source: Noah Wire Services