Ramadan 2024 has begun, and this one is a bit unique. It is the first winter Ramadan in 24 years, and in the UAE, it also coincides with Easter and schools’ spring break. The onset of Ramadan brings about a unique set of cultural, social, and economic dynamics.
For businesses, particularly car dealerships, understanding and adapting to the nuances of this holy month is essential for navigating through this period successfully, and profitably. In this article, we delve into what car dealerships can expect during Ramadan 2024 in the UAE and how strategies can be tailored to meet the needs of car buyers.
Ramadan 2024 Forecast: The Expected Numbers
Consumer Behaviour During & After Ramadan
A quick look into DubiCars’s data from the past three years reveals a significant increase in impressions on ad listings during Ramadan. During the 30 days of Ramadan in 2021, 2022 & 2023, impressions on ad listings increased by an average of 8.37% compared to the 30 days preceding Ramadan.
However, the same data reveals a significant increase in demand after Ramadan. During the 30 days after Ramadan, demand increased by an average of 2.27% compared to the 30 days during Ramadan. Those who search for their next used car during Ramadan end up buying the car after Ramadan.
This just proves that more people end up researching their next car during Ramadan, but, not all of them go through with their purchase during the holy month. This consumer behaviour is exactly why the month of Ramadan is considered a downtime for used car sales. Instead, car sales increase immediately after Ramadan.
As a car dealer, you would want to draw a strategy that focuses on maximizing reach and impressions during Ramadan. Make sure you re-engage with consumers throughout the month, keep your brand at the top of your mind, and nurture your leads until they are ready to make a purchase after Eid.
The 12-Day-Window Of Ramadan 2024
This year’s Ramadan season is a special one. As aforementioned, it is the first Ramadan season that falls in winter in 24 years. What makes it particularly special is that it coincides with schools’ spring break that starts on the 22nd of March and extends till Eid, resuming on the 15th of April.
During this period, families might consider traveling abroad, which leaves businesses with the “12-day window” to actually maximize their offerings.
Spring Break For The Car Market?
In 2022, Spring break took place between 01 April and 14 April and demand in this period saw an average dip of 9.4% month-on-month.
In 2023, this period lasted from 27 March, until 17 April. DubiCars’ data reveals a 7% dip in demand during this period when compared to the same period from the previous month. 2024 though, is a bit more unique. This ‘Spring Break’ period is much longer.
It is a total of 24 days and demand could drop by approximately 8% during this period. It shares a similarity to when Eid-Al-Adha coincides with the school summer break. In 2023, during the week when Eid-Al-Adha and the school Summer break came together, DubiCars’ data saw a 20% drop in demand.
Most Popular Car Price Brackets During Ramadan
As aforementioned, impressions on car listings see a significant increase during Ramadan. Digging deeper into DubiCars’ data reveals the price bracket that sees the highest increase.
During Ramadan 2023, cars priced between AED 200,000 & AED 250,000 saw a 21.97% increase in demand. Cars priced between AED 250,000 & AED 300,000 had a 13.89% increase in demand while those priced between AED 400,000 & AED 600,000 reported a 12.49% increase in demand.
It is a fact that customers look for the best bargains and deals during Ramadan. But our data also suggests customers are increasing their budgets for used cars. Your pricing strategy & the type of cars you list for sale need to take this into consideration.
Peak User Hours During Ramadan 2024
In recent years, there has been a noticeable surge in online activity during Ramadan. With more people spending time at home or in social gatherings, digital activity sees a significant increase.
Going into Ramadan, it is extremely important for dealers to know the most active user times. This allows dealers to be more responsive during those particular time periods and cater marketing activities to suit as well.
The impressions peak hours on DubiCars fall between 8pm and 12 midnight. Demand on DubiCars peaks between 2pm and 5pm. Car dealerships should leverage social media, email marketing, and digital advertising to engage with customers effectively during these hours.
Keep your customers informed about your opening hours, and respond to all leads as quickly as possible. Targeted ad banners, social media exposure, and exclusive deals can help maintain customer interest and drive sales.
Generic Ramadan Guidelines
Impact On Consumer Behavior
One of the most notable impacts of Ramadan on businesses, including car dealerships, is the shift in consumer behavior. The fasting period alters daily routines, leading to changes in shopping patterns and leisure activities. In the automotive sector, this translates into fluctuations in showroom visits, test drives, purchase decisions, and even online searches for cars.
Decreased Daytime Walk-Ins
As fasting individuals refrain from eating and drinking during daylight hours, the hustle and bustle typically associated with daytime activities diminishes significantly. Car dealerships experience reduced footfall during the daytime hours, as potential buyers prioritize rest and religious observance over leisurely pursuits like looking for their next car.
Shift In Peak Operating Hours
Conversely, evenings during Ramadan become prime time for socializing, dining, and leisure activities. After breaking their fast at sunset (Iftar), families and friends often venture out to malls, restaurants, and entertainment venues.
Car dealerships can capitalize on this trend by extending their operating hours into the evening or even late in the night, accommodating customers who prefer to explore their options after Iftar.
Promotional Strategies
To stand out in a competitive market during Ramadan, car dealerships must craft compelling promotional strategies tailored to the season. Special Ramadan discounts, low-interest financing options, free maintenance packages, and extended warranties are effective incentives for attracting buyers.
Moreover, emphasizing the values of family, community, and charity in marketing campaigns can resonate with consumers on a deeper level. If you’re part of a car dealership offering Ramadan discounts or offers or know of one, write to us and get featured on DubiCars’ dedicated Ramadan Offers page.
Cultural Sensitivity & Respect
While promoting sales and discounts, it’s crucial for car dealerships to demonstrate cultural sensitivity and respect for the religious customs of their customers. Avoiding overly aggressive or insensitive marketing tactics and ensuring that business practices align with Islamic principles can enhance brand reputation and foster goodwill within the community.
Ramadan is a season of high spirits and it is a festive atmosphere throughout the UAE. While it might be a slightly more challenging period for car sales, Ramadan brings a lot of goodwill and with the right steps, dealers can make the most of this holy month.
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Also Read:
– Ramadan 2024: Toyota UAE Announces Interesting Offers
– How To Get The Best car Load Interest Rates In The UAE
– Five Reasons To Sell Your Used Car Sooler Than Later
