Dubai: Loyalty is in relatively short supply with local car buyers. And dealerships sure are getting to know it well.
“They will go through all the showrooms on Shaikh Zayed Road before they commit to a purchase,” said K. Rajaram, CEO of Al Nabooda Automobiles. “This happens only when they are assured the deal they can extract out of the dealers is to their advantage. It’s a reality of the current market situation.
Does this mean some dealerships may have to blink first in trying to get the customers’ eye? “Thankfully, the market situation is such all dealerships are having to blink ... not limited to a few,” said Rajaram. “But everyone needs to see customers back in the showrooms ... and buying.
“I’m not saying anybody is losing money ... but it was much easier to sell in the years before.”
Rajaram is not just keeping an eye out for the here and the now. This week sees Al Nabooda Automobiles issue a tender for a full-scale logistics facility and a racetrack. The location will be at the Dubai Industrial City, for which it has taken up 1.3 million square feet. Apart from the track, there will be a club house where Porsche, Audi and Volkswagen owners can have the run of the place.
“We are looking at an end 2017 completion for the project which will cost Dh300 million,” said Rajaram. “The logistics facility can take care of up to 3,500 vehicles, and will also be the base for all our future pre-delivery inspection and body shop works.
“This was one of the key requirements that we had to complete before taking on any new projects.”
