Dubai: Automobile dealers, both old and new, do not expect the deregulation of fuel prices to affect their businesses.
“It is not clear how much the fuel price is going to be. People who drive big cars are not bothered about the hike, even if the fuel prices are doubled,” said Shah Basharat, product manager for Mazda cars at Galadari Automobiles.
“We are waiting for the actual announcement and then only we will know how much it is going to affect us,” he said.
“People were not bothered about the fuel prices before, and now they may look into the fuel consumption factor. We have to wait and watch.”
He said Mazda cars are now 30 per cent more fuel efficient than they were a couple of years ago but added that hybrid cars are still very expensive.
P.G. Haridas, sales manager at 4X4 Motors, said that the number of cars on Dubai’s roads had gone up dramatically despite the first hike in prices twenty years ago. Today, petrol is priced at Dh1.83 compared to Dh1 per litre 20 years ago.
“When I came to Dubai, the rent was Dh25,000 and now it is Dh55,000 [but] my salary is still the same. So, it will be business as usual,” Haridas said. “Many people are spending extra from their pocket due to Salik also.”
Haridas, however, said the price increase was unlikely to impact second-hand car buyers that much. He added the minimum impact would likely be felt by those who had originally eyed gas-guzzling high-end cars but were now considering mid-end models and those who had been eyeing mid-end models now considering sedans.
Haridas noted that those intent on driving gas-guzzlers would not be deterred by an increase in petrol prices. He added that second-hand car dealers would be affected by competition from dealers and not fuel price hikes.
Shakeer, service adviser at dealsonwheels, a luxury pre-owned car dealer, said that hike in petrol prices was unlikely to affect them.
“We cater to the rich and they [rich] are not bothered about the fuel price hike. Just by revving up, high-end cars will eat into the fuel usage, so it doesn’t bother the rich,” he said.
Mithun, an Al-Futtaim Honda sales executive, said that he does not think people will opt for public transport just because of the increase in prices.
“It is the convenience that matters most to a buyer. [The price hike] will not affect a buyer,” he said. “We have different options from 1.5 litre to 3.5 litre. If they want a powerful car, they will go for one depending on the fuel price factor. Even if a customer opts to stay away from four-wheelers, they have options and can go for the mid- to low-end models,” he said.
