Trump Tariffs: More Chinese Cars Set to Arrive in UAE & MENA

The MENA region is expected to see a significant increase in the number of Chinese-made cars on the roads in the coming years. According to a report by AlixPartners, Chinese vehicle exports are predicted to grow by 34% by 2030, up from just 10% in 2024. This growth is driven by China’s expanding presence in the global automotive market, even as tariffs continue to affect international trade.

MENA and Russia Emerging as Key Markets for Chinese Vehicles

The MENA region and Russia are becoming important destinations for Chinese cars, making up 35% of China’s vehicle exports by 2024. This marks a shift, as the combined exports to Europe and North America have been surpassed for the first time. China’s 2024 vehicle exports reached 6.4 million units, growing by 23%, far outpacing Japan, the second-largest exporter.

Impact of US Tariffs on Car Prices

While global tariffs imposed by the US and other countries are expected to raise the cost of Chinese vehicles and parts, the effect on the Middle East and UAE may be different. Experts believe that the UAE could benefit from the displaced vehicles as Chinese manufacturers look to find new markets.

According to Rahul Singh, managing director of Dollar and Thrifty UAE, the country’s automotive market could experience lower vehicle prices, particularly for Chinese-made cars. Since some vehicles originally destined for the US may no longer be able to enter due to tariffs, they will likely be redirected to markets like the UAE, boosting inventory and leading to more affordable pricing.

The Growing Popularity of Chinese Automobiles

As Chinese automakers push their way into the Middle Eastern market, their competitive pricing and advanced technology are winning over more consumers. The increasing demand for electric vehicles (EVs) and intelligent-driving technologies, like ADAS (advanced driver-assistance systems), is also a major factor. The UAE is seen as a key market due to its appetite for innovation, sustainability, and future mobility solutions.

A Strong Shift Towards EVs and Intelligent Features

China is making strides in intelligent-driving technologies, and the Middle East is becoming a focal point for these advancements. In China, 60% of cars sold in 2024 included ADAS L2 features, compared to less than 40% in the US. As Chinese brands align with regional needs, there will be more opportunities for partnerships, technology adoption, and competitive action in the automotive sector.

With China’s electric vehicle sales booming domestically, this success is expected to support its continued expansion into the Middle East and beyond. In 2025, China’s automotive market is predicted to grow by 4%, driven by increased demand for EVs and intelligent vehicle systems.

What This Means for Consumers in the UAE

As the automotive market in the UAE adjusts to these shifts, consumers can expect wider selections of vehicles and more competitive pricing in the near future. With the growing influx of Chinese cars and innovations like electric vehicles and smart driving features, the UAE’s automotive landscape is set to change, giving consumers more choices and better value.