Economy Politics Local 2026-04-13T03:31:30+00:00

UAE Consumers Call for More Car Dealers to Boost Competition

Consumers in the UAE are advocating for more car dealers to lower prices and improve service quality, mirroring a new system in the pharmaceutical sector. However, dealership officials cite regulatory challenges and coordination with manufacturers as obstacles.


UAE Consumers Call for More Car Dealers to Boost Competition

Consumers are calling for an increase in the number of authorized car agencies in the local market, similar to what the UAE's Ministry of Health recently announced, a first-of-its-kind move aimed at breaking monopolies and obliging pharmaceutical companies to appoint more than one agent for each medical product traded in the local market. They confirmed that applying such a mechanism in the automotive sector would support greater competitiveness in the sector and increase the quality of services provided. They told "Al Ittihad" that cars are important essential goods, and taking them, especially new models, out of the "exclusive" circle of some companies and agencies, will reflect positively on consumers and markets, as it will allow for lower prices amid rising competitiveness, as is applied in many countries around the world. Conversely, officials from car agencies said that the presence of "agents" in the automotive sector is linked to regulatory policies according to standards related to the manufacturer's choice of agents in global markets, entrusting them with the responsibility of sales, providing warranties, and services related to maintenance and spare parts. They confirmed that there is more than one agent for some car brands in the local market. They saw that freeing the market from exclusive agents includes difficulties in coordination between agencies and state authorities, and the manufacturer, related to the responsibility of recourse to them in case of recall campaigns in the markets, and providing a technically trained and highly qualified workforce. They affirmed that consumers have multiple options related to the freedom to import cars from abroad personally, or obtain them from the available free zones, or buy them from companies that work in car trading. In detail, consumer Hitham Jamal said that increasing the number of car agencies in the local market would have many positive impacts, noting that cars are important durable goods for individuals. He believed that having a larger number of car agencies would raise the competitiveness of services and prices, and would be in the interest of consumers. On his part, consumer Salah Sharif believed that breaking the monopoly of some agencies in the automotive sector would reduce the levels of offered prices and raise the competitiveness of the services provided, whether in maintenance or warranties, which would in turn enhance the state's position in the car trade sector. He told "Al Ittihad": "The experience of having multiple agents in a number of countries contributed to providing great price competitiveness in those markets, compared to the local market in terms of vehicle prices." In the same context, consumer Ahmed Khalid said: "The prices of many cars in the local market are higher compared to other regional countries, which requires opening the door to a larger number of car agencies in the markets, which supports market competitiveness in prices and services," stressing that this would in turn reflect positively on consumers and increase demand positively. For his part, consumer Ismail Hassan said: "Car agencies exclusively control the prices of car models, the services provided, and the warranty," pointing out that cars are important durable goods, and therefore taking them out of the "exclusive" circle of some companies and agencies will reflect positively on consumers and markets, through increasing price and service competitiveness, due to having more than one service provider. Regarding this, the Sales Manager for the "GEC" brand at "Al Qarqash for Cars", Khaled Al-Aswad, said: "The presence of agents in the automotive sector is linked to regulatory policies, according to a number of standards related to the manufacturer's choice of agents in global markets, entrusting them with the responsibility of sales, providing warranties, and services related to maintenance and spare parts." He added to "Al Ittihad": "Manufacturers deal with agents in markets through coordination frameworks, whether by choosing one agent or more than one agent, as evidenced by the existence of three agents for one car brand in the country's markets, and two agents for other brands." He continued: "The manufacturer sets the frameworks and price levels for cars, and the agent chooses the prices according to those levels, and in a way that suits profit margins and operating costs, which differ in the local market from their counterparts in many countries in the region," pointing out that "liberating agents is linked to many regulatory standards common between producing manufacturers and agents in markets." On his part, the General Manager of the "Porsche Cars" Center in Abu Dhabi, Waseem Khalil, said: "Agencies undertake many responsibilities, in coordination and cooperation with the producing car manufacturers, as agencies act as a reference for consumers, in terms of providing warranties, maintenance, and spare parts for the sold cars." He indicated that "freeing agents includes difficulties in coordination between agencies and state authorities, and with the manufacturer, related to the responsibility of recourse to them in case of recall campaigns in the markets, and providing a technically trained and highly qualified workforce, and ensuring their continuous qualification, to carry out the necessary maintenance and repair operations for cars." He affirmed that "agencies coordinate with the regional offices of the producing car manufacturers regarding determining the price levels of cars, according to joint agreements between the two parties, through which the agent sets the prices according to the agreed-upon levels." In the same context, a sales consultant in one of the car agencies, Mohamed Salah, considered that freeing the car sector from exclusive agencies might achieve high competitiveness in markets that benefits consumers, but the presence of agents, whether one or more in the local market, is linked to operational regulatory requirements due to the nature of cars as a good that needs years of maintenance, service, and warranty." He added: "Consumers have multiple options related to the freedom to import cars from abroad personally, or obtain them from the available free zones, or buy them from companies that work in car trading," stressing that many consumers prefer to deal with "agents" to get maintenance and warranty services.