Interview with Dr. Joerg Breuer, Managing Director, BMW Group Middle East
Another in our series of interviews with senior car guys about the state of the industry as we head into 2012
By Shahzad Sheikh
Q. Whilst initial expectations for 2011 were optimistic, it appears to have been a case of a stalled recovery with political unrest across the region, a natural disaster in Japan severely impacting the car industry, and fears of a double dip recession causing buyers to put off purchases. Now in the final quarter, do you find things are better, worst or about what you expected for the year?
Our Middle East sales this year for the period January-September were up 11% over the same period last year, and globally we are witnessing record sales months after months, so we are feeling optimistic that we will end the year with growth for all our brands in the region, and globally. Furthermore, our UAE importer in Dubai, AGMC, opened a multi-million dollar new facility earlier this year, and Abu Dhabi Motors plans to open totally new refurbished facilities for all our brands in January 2012. These multi-million dollar investments show the confidence our two biggest Middle East importers have in the country.
Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules requiring buyers to have a minimum 20% deposit on new car financing?
We welcomed this new regulation as it helps bring some stability to the market by protecting the consumer and ensuring improved security for the banking industry. Although it has had some effect, our sales for both our UAE importers are up 29% in Dubai and the Northern Emirates, and 21% in Abu Dhabi for the first nine months of this year. The UAE remains our biggest market accounting for more than 50% of our Middle East sales from the period January to September 2011.
2012 BMW 3-series
Q. Has there been any apparent shift in the demands, needs and requirements of customers? Are they buying more used cars, are they chasing more incentives, are they negotiating more, are they playing hard to get?
Middle East customers have an appreciation and desire to buy highly equipped, luxury vehicles that offer the best a brand has to offer, and as a result, it’s our top-of-the-range models which include the flagship BMW 7 Series, BMW X6, X5 and BMW 5 Series that continue to be our best selling models in the region.
However, we are seeing that some customers are being more cautious. They are taking more time to assess the different options out in the market and to make sure that they are making the right purchasing decision.
Our BMW Premium Selection, which is our pre-owned car programme is also seeing good growth with our sales up 37% from January to September 2011.
BMW M5
Q. Are new products still helping you to attract customers into the showrooms?
Absolutely. We have already launched seven new models so far this year: the new BMW 6 Series Convertible; 6 Series Coupé; X3; 1 Series M Coupe; BMW M5; MINI Countryman, the fourth MINI model with four doors and 4WD capabilities and the MINI Coupé – a fifth model for the MINI portfolio and the brands first two door model. We will continue to invest in launching new cars and technology into the markets as this is a strong part of our business growth plan.
MINI Coupe
Q. Have you had to work harder at marketing your products and brand this year? What’s been the most effective way to deploy your advertising spend this year?
There’s a wide choice out there for consumers, so we are constantly looking at ways to market our brands and products more successfully. Our approach on a regional level is fully integrated utilizing all advertising and public relations disciplines. We believe having the two work alongside each other complements our marketing objectives in a powerful and impactful way. On a market specific level, we work closely with our importers to take their local market needs into consideration and at the same time ensure the essence and tonality of the campaigns remain true to our brand’s personality and premium positioning.
BMW 6-series convertible
Q. Looking ahead, what are your realistic expectations for 2012?
Our main new car launches for 2012 will be our all-new BMW 3 Series and a ‘refreshed’ 7 Series so we are confident that these new models, as well as a few others, will help us achieve continued success in the region.
