UAE: 66% Report Post-Storm Communication Gap with Auto Dealers
A Gfk report reveals consumer sentiment against the region's automotive sector following last month's heavy showers in the UAE.
Adverse weather predictions, including heavy showers and storms—reported to be the most severe in the last 75 years—affected parts of Oman, the UAE, and KSA last month. Operations at Dubai Airport were significantly disrupted for over 48 hours. Numerous houses, malls, and shops were seen submerged in floodwaters on social media. Road closures and flooded streets contributed to widespread traffic congestion. Many nationwide are still struggling to obtain reimbursements for damage to their homes and vehicles.
While the damage to infrastructure is being addressed, the automotive industry persists in addressing challenges caused by the recent adverse weather conditions, striving to meet consumer needs amidst ongoing disruptions. Research conducted by Nielsen-Gfk identifies key consumer concerns from the automotive sector. 66 % of consumers didn’t receive any communication from their respective dealership stores post the floods, whereas, 64% of those stuck confirmed to repair the vehicle for now and are willing to buy a new vehicle in the future. The insights also recorded that 32% of consumers stated that their vehicles were stuck due to water logging on roads or in the parking lot.
The UAE Central Bank called for insurance providers to cover vehicle damage for all those signed for a comprehensive insurance policy. Due to a lack of continued and effective communication from automotive dealers, 22% of car owners in the UAE have been considering buying a new car. The Central Bank advised affected individuals to read their policies carefully to protect their rights.
According to Rahul Dixit, Consumer & Marketing Insights Commercial Leader, Arabian Peninsula & Pakistan at NIQ-GfK, “The recent heavy rains in Dubai caused significant disruptions to the UAE's automobile sector. As per our study, many people were unable to get to dealerships or service centers due to the weather. This has impacted car sales and maintenance schedules. The consumer insights in the study highlight the key areas that are shaping the future of the automobile sector. By understanding these effects, automakers and dealerships can be better prepared to navigate challenges and capitalize on opportunities.”
The study was conducted in Dubai, Abu Dhabi, Sharjah, and other Northern emirates which highlights the impact of natural disasters on the auto sector and suggests areas for improvement in after-sales service, and consumer behavior.
