UAE: Most motorists who repair rain-damaged vehicles plan to buy new ones

A majority – 66 per cent – of motorists in the UAE will be repairing their rain-damaged cars now, but plan to buy a new vehicle in the future, according to a new study released by market and consumer intelligence firm NIQ-GfK.

About 22 per cent of car owners are considering to buy a new vehicle after assessing the damage.

“The recent heavy rains in Dubai caused significant disruptions to the UAE's automobile sector. Many people were unable to get to dealerships or service centres due to the weather. This has impacted car sales and maintenance schedules,” said Rahul Dixit, consumer and marketing insights commercial leader, Arabian Peninsula and Pakistan at NIQ-GfK.

Nearly 32 per cent of respondents stated that their vehicles were stuck due to water logging on roads or in the parking lots.

A study by Guy Carpenter said that around 30,000 to 50,000 vehicles were damaged during the floods after unprecedented rains in mid-April. Only vehicles with comprehensive policies will be covered by insurance companies because third-party liability policies typically do not cover natural catastrophes.

Abhinav Gupta, CEO for the Gulf region at Cars24, told Khaleej Times earlier that 20 to 25 per cent of or damages.

“Owners will retain those cars that are repairable. They will come later to the market for sale. For the next 6 to 12, most of these damaged cars should come back to the market,” he added.

Vehicles that were submerged in the basement parking of the buildings were still being pulled out this week by the vehicle owners.

The NIQ-GfK study was conducted online in Dubai, Abu Dhabi, Sharjah, and other Northern Emirates which highlights the impact of natural disasters on the auto sector. Conducted between April 20 to 22, a total of 1,225 people took part in the study aged between 18 to 55 and includes different ethnicities.