The Biggest Challenges Facing UAE Motor Dealers in 2022

09 Feb 2022 Helpful Tips


It’s a very interesting time for the UAE Motor Industry. Every Emirati Dealer has experienced many challenges over the last two years and 2022 will be no different. As we continue further into 2022 there will be many new and familiar challenges for Motor Dealers to adapt to.

New Car Shortages, Increased Competition, VAT Calculations and Staff Shortages are just a few of the challenges facing UAE motor dealers throughout 2022.

Here are The Biggest Challenges Facing UAE Motor Dealers in 2022:

1. New Car Shortages

The biggest challenge facing all motor dealers is New Car Shortages. New Car shortages have been a big challenge for UAE Dealers for some time now, but it does look like it is set to continue into 2022.

With Covid-19 still effecting large parts of the world, many major global car manufactures have had to limit or close production entirely due to the health risk it presents staff. What’s further slowing production is the global semiconductor chip shortage.

When will new car stock become available in the UAE? The new car shortage is predicted to continue well into 2022, no timeframe has been predicted at this stage due to various issues.

2. Increasing Competition

In every industry there is going to be competition. As competition continues to grow in the UAE, it's so important that dealers have a clear plan in place to combat their efforts.

Understand your competition, know what prices they are offering customers, look at what they are doing to get customers and find ways to match or better what they are offering customers.

Competition is always going to be a challenge for every business. You can’t control competitors entering the market but what you can do is have a clear plan in place that limits the effects the competition has on your dealership.

Related Article: How UAE Car Dealerships Can Generate More Leads in 2022.

3. VAT Calculations

Since inception in 2018, VAT has been a massive challenge for UAE Car Dealers. VAT is a 5% tax levied by the UAE government on the sale of Goods and services. What makes VAT calculations so difficult for UAE dealers is it greatly differs to general VAT. Making one mistake could cost dealerships thousands in compliance fines.

Using EasyCars Dealer Management Software, UAE Motor dealers can automate the entire VAT compliance process. EasyCars automatically calculates complex VAT, syncs to Xero, and generates reports for easy submission to the FTA.

Related Article: How UAE Motor Dealers Can Automate VAT.

4. Staff Shortages

A new challenge facing all Businesses around the world is staff shortages. With the Covid still surging around the world, dealerships may be forced to close or operate with limited staff at different points in time throughout the year.

To minimise the impacts of a staff shortage, UAE dealerships need to automate their everyday tasks using a Dealer Management Software.

The benefit of using a Dealer Management Software like EasyCars, is it automates all the buying and selling of motor vehicles in the UAE. EasyCars automates tasks like Stock Management, Advertising, VAT Compliance, Website Listings, Business Reporting and Accounting.

The best thing about EasyCars DMS is it is cloud based. Dealers can manage and operate their dealership remotely from anywhere, any place and at any time, all you need is an internet connection.

Related Article: 4 of the biggest car dealer frustrations solved in EasyCars.

Final Word,

There will be many challenges for UAE Motor Dealers in 2022. What will determine success is the way that dealers plan and implement solutions that minimise the effects those challenges have on their dealership.

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About EasyCars,

EasyCars by Jeal is a UAE motor industry specific, cloud-based dealer management software that automates the buying and selling of motor vehicles in the UAE.

EasyCars includes all everyday management features like Stock Management, Automated Advertising, VAT Compliance, Business Reporting, Integrated Accounting, and Website Listings in one central easy to use software application.

EasyCars customises our packages to meet your needs – only pay for what you use.

Submit the form below for a no-obligation free demo of EasyCars.

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