Officials attributed it to high demand, lack of supply and supply disruptions

Consumers complain about the limited offers of cars during the "summer season"

• Continuing supply disruptions negatively affected the scarcity of offers and the shortage of vehicles.

  Photography: Patrick Castillo

picture

Consumers reported that there are limited car offers during the current summer season, whether related to the added value or prices, pointing out that the high car prices and the lack of offers increase the financial burden on consumers who want to buy new cars.

They pointed out, to "Emirates Today", that the offers available in the market are currently very slight, and are considered the lowest compared to the period during the pandemic or before.

In turn, officials in the auto sector attributed the lack of supply to reasons related to demand growth and lack of supply in the market, with the continued supply and shipping disruptions for new cars.

In detail, the consumer, Amjad Ibrahim, said that “there is a rise in the prices of cars of all kinds, as a result of international supply crises, but at the same time, local markets are witnessing a scarcity and limited car offers during the summer season, which makes consumers suffer from increased financial burdens when buying a car. New".

The consumer, Bassem Hassan, added that “the current summer season is the lowest over the past 10 years in the local markets, in terms of car offers available in companies and agencies, in addition to the limited offers, with the increase in prices in cars, which we are witnessing in varying proportions since the beginning of this year, It makes it difficult for consumers to buy new cars, and some are forced to search for used cars.”

The consumer, Samer Abdul Majeed, explained that “he was looking forward to the summer season to buy a new car for him and his wife, with agencies accustomed to offering extensive competitive offers, but he was surprised by the scarcity and remarkable limitedness of the offers available in the market, whether in terms of number or content of the few offered offers.” .

And the consumer, Mahmoud Ismail, indicated that he was “surprised when he wandered among a large number of agencies, about the scarcity of summer offers on cars, as he only noticed two or three offers, including limited cars, the agencies want to activate their sales, with weak advantages in offers, such as Extending the warranty or maintenance period, which is already available in some agencies without offers.”

In turn, Mamdouh Khairallah, General Manager of Rolls-Royce Motor Cars, the Arabian Gulf Mechanical Center in Dubai and the northern regions, said, "The local markets were usually during the summer season, already witnessing expanded competition between agencies and companies in offering offers on cars, in various ways. Price incentives or those related to value-added offers and services that consumers obtain when purchasing,” noting that “the absence of competitive offers, and the limited offering during the current summer season, are due to several factors, the most prominent of which are market policies in terms of the return of high demand for cars, after the peak of The (Coronavirus) pandemic, and in turn, the lack of supply in the markets, as a result of the shipping and supply crisis.

He added that "the supply disruptions for cars are still continuing, due to factors related to high oil prices, limited shipments, and delays in supply, in addition to the crisis in the supply of electronic chips that still casts a shadow on the markets, which in turn led to delays in supply operations, and some companies resorted to moving away from transportation." marine, and resorting to air transport of cars of high price categories, which accounted for large proportions in supply operations, compared to small, low-priced cars.”

Khairallah indicated that “the disruptions in shipping and supply, not only affected the supply in the local markets, within a global phenomenon caused by the repercussions of the (Corona) pandemic, and the repercussions of the Russian-Ukrainian crisis, but also had a reflection on the prices of cars that were also affected by the rise in raw materials for manufacturing, whether As for spare parts, used metals, or even leather and tires.”

He added that "all the previous factors, in turn, did not motivate the agencies to offer expanded offers on cars, during the current summer season, especially in light of the continued demand for purchase," noting that "some of the offers available in the market are focused on large cars, with high consumption. For fuel, or high price, which is less in demand than small cars or popular demand in the market.

For his part, the Senior Managing Director of Al-Futtaim Motors, Vincent Wienen, said, “The markets are witnessing a great demand for cars, but with the market demand gradually returning to what it was in 2019, before the (Corona) pandemic, it continues in return. Reducing global production is having an impact on the car market, which explains the decrease in the number of new cars available in the market.”

He explained that “the supply of new vehicles is still (restricted), not only as a result of the shortage of semiconductors, but also due to the general disruption in supply chains as a result of the pandemic, and the increase in the cost of raw materials, and we expect supply problems to continue throughout 2022 and until the first half of 2023.” He pointed out that "this does not preclude that the demand for new cars is still strong, so we expect the prices of new cars to remain high during the next few years."

In turn, a sales official in one of the European car agencies of origin, in Dubai, who preferred not to be named, explained that “the scarcity of car offers during the recent period is due to the policy of supply and demand in the market, as the supply of cars is limited in the agencies, but the demand is large from consumers, Consequently, there are no strong incentives for offering offers to attract consumers,” noting that “the continuation of supply disruptions had strong effects on the scarcity of offered offers, with the low supply of vehicles, especially the cars that are popular in the markets.”

Follow our latest local and sports news and the latest political and economic developments via Google news