UAE New Car Sales Fall 15 Percent in August, Down 23 Percent Through August

Abu Dhabi: Continuing its decline, new car sales in the UAE fell 15.1 percent year-on-year in August to 23,066 units. After eight months, the year-to-date total stands at 160,210 units, down 23.2 percent compared to the same period last year, even as the monthly pace of decline has eased from its spring low.

There are several factors affecting sales this year, mainly rising oil prices, the effects of the regional conflict, and a wider economic slowdown weighing heavily on car brands. As a result, many car buyers are holding on to their purchase decisions.

Period	Sales	Change year-on-year
First half of 2026	116,724 units	Down 25.8 percent
July 2026	20,420 units	Down 15.8 percent
August 2026	23,066 units	Down 15.1 percent
January to August 2026	160,210 units	Down 23.2 percent

Where The Slump Came From

Most of this year's damage was done in the spring. The steep drop in March and April was linked to the regional conflict, with April alone down 41.9 percent, and the first half closed 25.8 percent lower. January, before the disruption, was down only 1.8 percent. Since then, the pace of decline has narrowed, to 15.8 percent in July and 15.1 percent in August, so the year-to-date figure is still heavy largely because of the weak spring months rather than because sales keep falling at the same rate.

Toyota Still Leads, But Slower

Toyota's 31 percent decline is roughly double the market's, yet its 21 percent share still comfortably leads every other brand. Nissan, now third, fell 25.9 percent, so both of the largest volume brands lost more than the market overall.

Brands showing resilience

It is worth noting that, despite the negative market sentiment, not every brand is shrinking. Another Japanese brand, Mitsubishi, has posted the sharpest gain of any major brand at 123 percent. This jump is led by the Outlander, while the new Destinator also entered the top 10 and helped Mitsubishi's strong performance. Mitsubishi holds second place. Chinese SUV maker Jetour grew 2.6 percent and kept fourth place, while EV maker BYD held fifth with a 4.8 percent share.

Luxury brand Land Rover rose 47.1 percent to seventh place, against twelfth so far this year, with the Defender among its standout models. Jetour and BYD are Chinese brands still building share, while Mitsubishi and Land Rover are gaining on the back of specific models.

Our Verdict

So overall, a 23 percent drop through eight months shows a market that has not yet recovered from the spring disruption. But positively, August's smaller decline shows the pace of loss is easing.

For buyers, a market running well below last year's volumes often gives more room to negotiate, particularly on slower-moving models. It is worth asking for the best price rather than accepting the first quote, especially on models outside the current top sellers.

Also Read: Which Cars Hold 75% of Their Value After 5 Years in the UAE?