Chinese car production has, in the past two decades, begun to challenge the US, Japan, Germany, France and Canada, who dominated global exports and production. Beyond creating a production powerhouse, Chinese automakers have increasingly delivered cutting-edge technology and sleek designs at competitive prices. Its special economic zones (SEZs) have also played a major role in the country's economic boom and export growth. Within SEZs such as Shenzhen, China offered tax incentives to foreign investors, including the ability to import equipment and technology tax-free. Our chart of the week highlights the significant advances by China's car industry. Today this industry produces more than 30 million vehicles a year. In the past few years, the UAE has seen a notable growth in Chinese vehicle imports. Competitive pricing and a notable shift towards modern design features have positioned these cars as attractive alternatives to traditional offerings from Japan, Korea, and Europe. According to the Middle East Automotive Council, between 2023 and 2024, Chinese automakers increased their market share of the overall UAE market from 4 per cent to almost 7 per cent, representing an 86 per cent increase in vehicles sold. Yet although US, Japanese and European vehicles still own a significant market share in the UAE, consumer trends have shifted. In 2024, the Dubai Police announced that they had signed a new fleet of patrol vehicles from Chinese car brand Geeley. The Geely Tugella model was specially modified and dressed in Dubai Police’s livery for service across tourist areas and key locations throughout the emirate for law enforcement purposes. Since its launch in UAE in May 2023, Geely has steadily increased in market share. IIt is ranked as the top 3 most selling Chinese automobile brand in UAE, during the first half year of 2024 (from Jan 2024 to May 2024 ) according to MEAC data. Chinese automobile manufacturers have rapidly built up their global competitiveness in recent years. In December 2024, China's auto sales accounted for 41 per cent of the world's total, a historic high.
