Beijing: Manoeuvring to win the rights for Chinese automotive brands is proving to be a badge of honour for UAE dealerships. And a winning strategy for those who can get their sales and marketing strategy just right.
“It’s a fact that five or six of the most well-known Chinese car brands are already represented in the UAE — but there are still “jewels” out there for the picking,” said Ajit Kumar, CEO at Swaidan Trading Co, which has just launched the Chinese-owned Haval SUV line-up in the local market. It represents the first serious attempt by a Chinese brand to win over buyers in the UAE’s already highly competitive SUV space.
“The Chinese government is also pushing the car industry to consolidate from the current situation of having too many domestic manufacturers. This, according to the government, is the only way for the industry to compete globally.
“That’s why you will see more Chinese brands trying to cut it in overseas territories rather than just rely on domestic sales.”
The big names among Chinese carmakers — Dongfeng, Geely and GAC — are already represented in the UAE. Haval’s entry with its SUV-only line-up adds to the momentum. (Of course, if one goes simply by the definition of “Chinese-owned automotive brands”, there are the likes of Peugeot and Volvo. But that’s a totally different ballgame altogether.)
Haval is part of the Great Wall Motors, the largest privately-owned auto manufacturer in China.
The UAE launch will be spearheaded by four model variants, with engine sizes from 1.6- to 2.4-litres. Prices range from Dh60,000-Dh120,000.
The pricing puts it directly in conflict with some of the Korean and Japanese models in the same price and specs range.
“The Chinese makers have already bridged the technology gap between them and the others...any gap that exists is narrow to nothing,” said Kumar. “With the pricing they can attach to their models, they make for quite an interesting proposition.”
It was last year that SUVs outsold sedans for the first time in the UAE, with every other manufacturer going head to head with competing models across all categories. And swelling their ranks in the super-premium space were Bentley and Maserati, each with their debut introductions — the Bentayga and Levante, respectively. And if it’s super-niche you want, there’s not much you can go beyond the Humvee C Series, the civilian version of the US Army staple.
For Haval to join in thus makes absolute sense. Already on the sedan side, Chinese auto brands have had some breakthroughs since the second-half of 2015 and which they have been able to carry into this year as well. And this is happening in retail sales and not confined to buys by fleet operators.
So, how well are the Chinese brands doing in the UAE? Marketshare is still in the low single digits. But Kumar says that’s not the metric one should go by... at least for now.
“What matters to me and other dealerships is that Chinese-built vehicle sales are doubling year-on-year. That’s the big takeaway now. It’s something that’s been consistent since 2012-13. It will sustain.”
As for the Haval range, the dealership is looking to do just over 1,000 units this year.
