A recent study by NIQ-GfK, a market and consumer intelligence firm, unveils insights into the impact of heavy rains on the UAE’s automobile sector, revealing that a majority of motorists are opting to repair their rain-damaged cars while considering future vehicle purchases.
According to the study, 66 per cent of car owners in the UAE are currently focused on repairing their rain-damaged vehicles, with 22 per cent contemplating the purchase of a new vehicle after assessing the damage. Rahul Dixit, consumer and marketing insights commercial leader at NIQ-GfK, highlights the significant disruptions caused by the recent heavy rains in Dubai, impacting car sales and maintenance schedules as many individuals were unable to access dealerships or service centers due to the inclement weather.
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Water logging on roads or in parking lots resulted in approximately 32 per cent of respondents experiencing their vehicles being stuck. The aftermath of the unprecedented rains in mid-April led to an estimated 30,000 to 50,000 vehicles being damaged, according to a study by Guy Carpenter. It’s noted that only vehicles with comprehensive insurance policies are covered by insurance companies for such natural catastrophes, as third-party liability policies typically do not provide coverage.
Abhinav Gupta, CEO for the Gulf region at Cars24, suggests that 20 to 25 per cent of submerged cars are likely to have serious problems or damages, with owners opting to retain repairable vehicles that may re-enter the market for sale within the next 6 to 12 months.
Despite ongoing efforts to salvage submerged vehicles from basement parking areas, the repercussions of the heavy rains continue to be felt in the auto sector. The NIQ-GfK study, conducted online in Dubai, Abu Dhabi, Sharjah, and other Northern Emirates between April 20 to 22, surveyed 1,225 respondents aged between 18 to 55, representing diverse ethnicities, shedding light on the enduring impact of natural disasters on the automotive industry.
