A recent study by market and consumer intelligence firm NIQ-GfK reveals that a substantial 66 percent of motorists in the UAE are currently grappling with repairs for their rain-damaged vehicles, with intentions to purchase new ones in the foreseeable future. The research also indicates that 22 percent of car owners are contemplating acquiring new vehicles following their assessments of the damage.
Rahul Dixit, Consumer and Marketing Insights Commercial Leader for the Arabian Peninsula and Pakistan at NIQ-GfK, noted the significant disruptions caused by the recent heavy rains in Dubai to the UAE's automobile sector. The inclement weather impeded many individuals from reaching dealerships or service centers, thereby impacting both car sales and maintenance schedules.
Nearly a third of respondents, approximately 32 percent, reported that their vehicles became immobilized due to waterlogging on roads or in parking lots. According to a study by Guy Carpenter, the floods triggered by unprecedented rains in mid-April damaged an estimated 30,000 to 50,000 vehicles. Notably, only vehicles covered by comprehensive insurance policies will receive coverage, as third-party liability policies typically do not extend to natural catastrophes.
Abhinav Gupta, CEO for the Gulf region at Cars24, anticipates that 20 to 25 percent of submerged cars may sustain serious problems or damages. He suggests that owners will retain repairable vehicles, which will subsequently re-enter the market for sale over the next 6 to 12 months.
Meanwhile, vehicle owners continue to extract submerged vehicles from basement parking facilities this week. The NIQ-GfK study, conducted online in Dubai, Abu Dhabi, Sharjah, and other Northern Emirates between April 20 and 22, surveyed 1,225 participants aged 18 to 55 from diverse ethnic backgrounds. It sheds light on the repercussions of natural disasters on the auto sector.
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