Dubai: A repeat performance is always a difficult thing to pull off and more so when the previous one sets quite a high benchmark by itself. 

This is what the UAE’s automotive sector is facing up to in the first few weeks of January after what has been, by universal reckoning, the second best year ever for car sales at, or just over, the 300,000-unit mark. (In comparison, the best performance ever was the 325,000 units in 2008, but that was the year of unlimited credit on tap and buyers seemingly intent on going for a new car at the sight of a small dent on their existing one.) 

But how can dealerships and automakers convince prospective buyers to get back into the showrooms in the early days of 2013? There is the DSF, of course. 

But this year there is a subtle, yet fundamental, departure from the DSF campaigns of recent years. The emphasis is less on offering steep discounts on models and expecting car owners to consider an upgrade. Instead, the deals are formatted around add-ons such as extended warranties, assistance on auto loans and free insurance packages instead of straight-out price rebates. 

“In 2009, dealerships paid a heavy price on promotions to get out of an inventory pile-up crisis and this trend continued into the next couple of years,” said the head of a Japanese franchise. “It led to unprecedented margin declines for the sector. But since 2012 sounder fundamentals in the buying and selling of cars are making a slow return. The campaigns of DSF 2013 are built around these fundamentals and it is win-win for all.” 

Al Futtaim Motors, the volume leader among local dealerships through its Toyota franchise, is working on getting as much out of January as it could possibly can. Apart from the DSF-specific promotions, it will be helped by this week’s launch of the new, extensively redesigned RAV-4 – Toyota’s compact SUV and currently into its fourth generation. 

“While it is still very early to comment on our performance in January, we expect the positive trend to carry on especially with the new models we are about to launch in the SUV and sedan segments,” said Simon Frith, Managing Director at AFM. “We are planning to increase year-on-year January sales by over 30 per cent which is a clear indication of how our business, and the overall sector, is prospering in the UAE.” 

While new model launches coinciding with the DSF run is always a good thing, dealerships which are not as advantageously placed are working on the angles. “We are not running one single offer across the Peugeot range as we would normally do, such as in Ramadan,” said Neeraj Mahajan, CEO of Al Naboodah Commercial Group, which has the rights for Peugeot in Dubai and northern emirates. 

“We have instead tailor-made our offers to suit our customer requirements - for example on the more expensive cars such as 508 and RCZ we have included free insurance - which is a big consideration on these models. For others we have included free service and registration as added value-benefit.” 

The strategy of targeting specific cars for specific campaigns is what most dealerships have on at the moment. This way, dealerships get to put their marketing clout behind select models rather than try and cover all bases and hope some click. 

“It is easier to promote a single offer across a range but that may not fit all customer needs in the different sectors; so we chose DSF to make specific model offers,” Mahajan added. “However in select cases like Ramadan, it is important for customers of all segments to feel there is a promotion covering all segments of buyers. Hence services are planned accordingly.” 

But exceptions still need to be made where necessary. “We like to go for the whole range because customers like to look at different options,” said Rajesh Krishnan, General Manager, Sales and Marketing at Liberty Automobiles. “After the year-end, there is usually a lull, but what DSF does is bring some vibrancy and increased footfall.” 

If January can deliver on both, Dubai’s dealerships would have started the year well. And there is nothing like a good start, they will have you know.