Dubai: There could yet be a major game changer for UAE’s automotive market — Dubai winning the bid for the Expo 2020.
“A massive increase in retail and corporate demand can be expected if the city wins,” said Tamer Al Hakeem, general manager for marketing at Hyundai UAE, the local importer. “The upturn will filter through all categories of the auto market, including heavy commercial vehicles with the expected pick-up in construction sector demand. When Expo 2020 happens there will no more questions over whether the high growth rates of today can be sustained into the mid-term.”
The last year has been particularly good for fleet sales. Businesses are once again starting to expand their fleet operations and that means more business flowing into auto dealerships.
“Corporate or fleet sales are always welcome because of the number of units that are booked at one go,” said K. Rajaram of Al Nabooda Automobiles. “But there’s a catch involved — because of the higher transaction values, fleet buyers can demand extremely favourable rates and often dealerships accommodate these. That’s why retail sales to individuals will always be king for dealerships. That’s the nature of the business.”
