Motoring Middle East: Car news, Reviews and Buying guides

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?

Despite the aforementioned factors, 2011 has been a better than expected year for Jaguar Land Rover. Thanks to continuing strong demand from our key markets in the GCC and our strong product line across both Jaguar and Land Rover we’ve seen a return to pre-crisis sales levels.

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’ve taken steps to ensure that we have a lean and flexible business model which makes it easy for us to react quickly to changes in the market situation. We don’t carry a large amount of stock so we can quickly divert cars from one market to the other which means we never find ourselves with an unwanted oversupply of vehicles. In fact, if anything we have the opposite problem and our global position is that we cannot produce enough vehicles to keep up with the high demand.

Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules that require buyers to have a minimum 20% deposit on new car financing?

So far we have not seen any dampening effect from the changes in financing rules. Although our customers would prefer greater financial flexibility, they do not actually require it, hence we’ve seen very little impact on our sales volume. Due to our lean supply model, we are struggling to fill the current demand for vehicles hence the changes in the UAE retail environment have no impact on our total vehicle sales.

I would however say that the political instability in other parts of the region has increased the prominence of the UAE as a regional hub and hence has enhanced consumer confidence, boosting the overall retail sector performance.

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?

Customers in the Middle East are definitely becoming more conscious of fuel economy in response to increasing fuel costs. However consumers are still unwilling to compromise on luxury or aesthetics. As a manufacturer we have responded to this demand by introducing smaller, more efficient models, such as the Range Rover Evoque which will extend the appeal of the Range Rover brand to a younger and more environmentally conscious audience, and also smaller engine derivatives such as the 6 cylinder XJ which was created especially for the MENA, China and Russian markets.

Q. Is new product still helping you to get customers into the showrooms?

More than any other market I’ve ever worked in, the Middle East market is driven by new product. When new vehicles are launched, we see customers actually air freighting their own cars in rather than wait for the shipment. This doesn’t happen anywhere else and it shows the extent customers will go to, to obtain new vehicles before anyone else. Even the placement of wireframe models of the Evoque in showrooms and other high traffic locations prior to the arrival of the actual vehicle has produced a noticeable increase in showroom foot traffic and enquiries.

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?

Like other automotive manufacturers, Jaguar Land Rover has had to respond to the increased influence of social media and we now pay greater attention to our online presence. This year we became the first automotive manufacturer in the Middle East and North Africa to create a dedicated social media ‘suite’ including interactive blogs, Facebook pages, YouTube, Twitter and FlickR channels. Aside from offering us new channels to provide tailored content and information, these social media tools allow us to develop a closer relationship with our customers and fans. It also gives us insight into their thoughts and opinions.

We continually come up with innovative ways to market our products in order to stay ahead of the competition. For example, we recently appointed Emirati film director and producer Ali Mostafa as the brand ambassador for the Range Rover Evoque. We commissioned him to produce an online film series shown exclusively on MBC.net in which the car played a central role. This was a bold move away from traditional product placement and an example of how our approach to marketing has evolved.

Q. Looking ahead, what are your realistic expectations for 2012?

With the success of the Jaguar XJ, the introduction of the refreshed 12MY Jaguar range and the Range Rover Evoque launch in 2011, I expect 2012 to be a record year for both brands.