Interview with Jeff Mannering, Managing Director, Audi 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?
We are on track for reaching our target for 2011. Some markets of the region have been affected by the Arab Spring, but the year-to-date performance is exceeding the previous September year-to-date sales record of 2008 and we are aiming for another record year overall. We have grown through new model launches and focused very strongly on customer delight through sales and after sales service in our dealer network. In fact, Audi is the fastest growing premium manufacturer in the region.
Q. What changes in strategy, if any, did you have to employ to cope with the changing situation and unsettling events of the 2011?
We have a very clearly defined strategy on our path to become the number one premium manufacturer in the region. Even though there have been events that one cannot plan for, we were able to accommodate these and remain on target for the year overall.
Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules requirement buyers to have a minimum 20% deposit on new car financing?
We have continued to show improvement in our sales figures. Overall the premium brands have been less affected by the changes in regulation.
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?
Generally we have registered a higher awareness for fuel consumption without customers wanting to compromise on performance. As a result a good take-up on our new downsized engines, for example on the Audi Q7 and the new A6. Price transparency is a very important factor in customer satisfaction and our online configurator allows customers to make an informed purchase decision. Our dealers have offered value added promotions through the Audi Extra campaign, which is also an annual measure customers can look forward to.
Q. Is new product still helping you to get customers into the showrooms?
Definitely. Having launched a number of new models this year, including several in new segments, we have reached new target groups and attracted more customers to the Audi brand. One good example is the Audi A1 that reaches a younger, urban crowd. We have also grown very strongly through model updates, particularly on the new Audi A6 and A8.
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?
Effective ad spend is always key. Our messages and media channels are geared towards the target of the individual campaigns. For the A1 for example we have relied more heavily on online and social media than we have for the Audi A6, which focused more on the traditional print media.
Q. Looking ahead, what are your realistic expectations for 2012?
2012 is the next step to becoming the number one premium manufacturer in the region. We expect to grow steadily and sustainably through our models and excellence in our dealer network. The best is yet to come!
