Business | Automotives
Al-Futtaim sales surge despite Toyota recall
Market in the UAE recovering, says chief
- By Arno Maierbrugger, Deputy Business Editor
- Published: 00:00 October 23, 2010
- Image Credit: Arno Maierbrugger/Gulf News
- Al Futtaim sold 53,000 cars in the first nine months and has set its target for the whole year at 75,000.
Dubai : Toyota and Lexus sales are surging in the UAE on the back of a consistently recovering car market.
Al-Futtaim Motors, the brand's distributor, has seen a sales rise of 27 per cent in the first nine months over the same period in 2009, Simon Frith, managing director of Al-Futtaim Motors, told Gulf News.
He said the company sold 53,000 cars in the period and has set its target for the whole year at 75,000. Market share has risen by 4 percentage points to 32.5 per cent.
He added that he is convinced that the market has bottomed out after the slowdown in 2009, with growth of around 4.5 per cent so far in 2010.
"It is not huge, but it is still growth," Frith said. His predictions for 2011 are on the same level.
He said there has been improvement for customers getting car loans from banks, which affects Al-Futtaim's business directly as around 70 per cent of Toyota and Lexus buyers seek loans for their purchases.
New campaign
Additionally, the distributor is now developing a "personal contract agreement" similar to a leasing contract which should push sales further.
Frith said that such a leasing contract can last for three years and offers a "more affordable payment stream for customers" as well as it allows Al-Futtaim to push its secondhand car business after the cars have been returned.
The recent recalls of Toyota and Lexus cars "have had no impact on sales, as you can see," said Frith. "Al-Futtaim has been recognised in the market that we are handling the recalls in a very customer-friendly way."
A call centre has been established, and the target to recall 70 per cent of all affected cars within six months has already been exceeded.
"The whole thing is handled in a very well structured process."
Toyota and Lexus, which were not present at the Sharjah Automobile Show last week, will go big at the Abu Dhabi Motor Show in December, Frith said.
Homage to history
Al-Futtaim is launching a special anniversary version of the Toyota Land Cruiser, branded, Land Cruiser 60th Anniversary.
The car is a homage to the history of the Land Cruiser.
"In the UAE, the Land Cruiser has become part of the land's history and development, and part of the very fabric of life," says Hugh Dickinson, senior general manager of sales and marketing at Al-Futtaim Motors.
The first 28 Land Cruisers were shipped up the Dubai creek aboard a ship coming from Japan in 1955.
Nowadays, Al-Futtaim is selling up to 1,000 models a month, holding a market share among SUVs in the UAE of around 53 per cent.
Business Editor's choice
-
Duty Free seeks additional funds
Expects to finalise financing deal in a couple of weeks following strong interest from banks
-
More rooms at the budget hotels
Sector offers good potential for profitable investment as 3,000 new rooms expected
-
Giving a flair to high-profile marriage events
Rimjhim Events — which charges $20,000 on average to manage a destination wedding — is extending its reach into India and the Far East
