State of the Market – UAE October 2011
How car sales are doing according to the independent experts
By Shahzad Sheikh
Are the car dealers racing towards a big sales finish for 2011?
According to Autodata Middle East, whilst Ramadan/August understandably didn’t bring about the car buying frenzy some dealers might have been fasting for, there was nonetheless a 15% increase in sales. In fact they are reporting that October car sales are actually up by just short of 8% compared to last year already.
This may not seem like a lot, but considering how disappointing 2011 has been and the huge number of setbacks to the industry – natural disasters, uprisings, threats of double-dip – that 8% is something worth grabbing hold of and they are, and running with it!
So buoyed are they infact, manufacturers seem to be racing for a big finish to the year, particularly with the Dubai Motor Show just around the corner – the biggest show in the region. Targets have increased by as much as 20% in Q4 compared to Q3, according to Autodata.
So look forward to some aggressing marketing campaigns – and hopefully some great special offers! Particular concerning Hire Purchase PCP schemes now that Al Habtoor Mitsubishi has joined Toyota, Honda, Volvo, Jeep and Nissan in offering these finance packages aimed at making it easier for motorists to get into and stay in a new car.
Meanwhile talking of the motor show, according to IHS Automotive (in a press release issued by the Motor Show organisers) sales of luxury cars in the Middle East are expected to increase by 20% this year – more than double the 9.7% of last year, and rather ambitiously the highest lever ever.
Personally I think it’s a bit fantastical to be taking about highest, greatest sales ever and unprecedented growth, as we all know it’ll be some time, if ever, that car sales in the UAE get to back to the crazy pre-recession days! Nonetheless they’re talking about the Middle East luxury car segment doubling over the 2010-2015 period.
There seems to be some evidence to back it up – Bentley says it’s witnessed a 31% increase in Bentley’s global sales on the same period last year, with overall sales expected to grow around 40% with the imminent arrival of the new Continental GTC, but that is worldwide.
