The Aftermath Of The UAE Floods of April 2024: Impact On The Car Industry

In April 2024, the UAE faced unprecedented rainfall, causing significant disruptions across various sectors. Although the country quickly recovered from the storm’s damage, the car industry experienced notable changes that persist. This article examines the specific shifts in the UAE car market following the April 2024 floods, supported by detailed data points.

In April 2024, the UAE witnessed the highest rainfall over a 24-hour period since 1949, with up to 254mm of rain recorded. The floods left thousands of cars inundated, including up to 50,000 cars damaged. The UAE announced an AED 2 billion fund to repair damages. Hatchbacks and sedans were the most affected by the floods. Here’s a detailed guide to help you deal with a car damaged in the floods. 

The car market has shrunk by approximately 10%, with around 50,000 cars damaged in the floods. This dynamic is expected to result in increased prices for cars in demand, while prices for less popular models will remain stable. Additionally, many of these damaged cars will eventually enter the market for sale. If you’re considering purchasing a flood-damaged car, here are some tips to help you make an informed decision.

In the wake of the floods, consumer preferences have shifted towards more robust and versatile vehicles. SUVs and pickup trucks, known for their higher ground clearance and off-road capabilities, have seen a significant increase in searches and demand.

Sedans saw a minimal increase in searches (1%) immediately after the floods, with a 3.3% rise by July. However, demand for sedans on DubiCars dropped by 5.20% in July compared to April 2024.

The need to replace damaged vehicles drove a significant increase in demand for new cars (30.17% in July compared to April 2024). However, demand for used cars decreased by 17.89% in July compared to April 2024.

Searches for both petrol and electric vehicles increased after the floods. Petrol car searches rose by 29.08% in July compared to April 2024. Notably, EV searches increased by 11.01% in July 2024, influenced by viral videos showcasing their performance in waterlogged areas. Read this detailed article to know if EVs are better for flooded areas than internal combustion-powered cars.

Car rental searches surged by 28% in April compared to March, reflecting the immediate need for temporary transportation. This demand continued to grow, with a 7.04% increase in July compared to April.

Searches for car financing grew by 12% immediately after the floods, with an 11.48% increase in May and a 12.23% rise in June. This indicates that consumers are looking for ways to manage the financial burden of replacing their vehicles.

While May saw a slight drop in car insurance searches, June witnessed a 14.11% increase as more people sought to insure new or used cars purchased after the floods. If your car was damaged in the floods, here’s a detailed guide to help you with insurance claims.

Given the recent floods, it’s crucial to be extra cautious when purchasing a car to avoid hidden water damage.

Here’s a short and specific checklist to help you make a wise decision:

The best time to buy a car in the UAE is now, during the summer months. With many residents leaving the country, the car market sees more cars for sale and fewer buyers, making it easier to find great deals. Check out our detailed checklist for buying a used car.

The increased focus on vehicles that can handle adverse conditions suggests a long-term trend towards robustness and versatility. To prepare for future heavy rainfall, the Dubai government has announced a $8.2 billion (AED 30.12 billion) project to upgrade the emirate’s rainwater drainage system, designed to last 100 years. New projects, like the Al Khaleej Street Tunnel, will also consider adverse weather conditions. Here’s how you can protect your car from flood damage.

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