Life & Style | Motoring
Gargash expects 20% rise in new car sales
Gargash Enterprises, the Mercedes Benz agent in Dubai and the Northern Emirates, hopes to sell 20 per cent more cars this year than what it sold in 2006.
- By Shakir Husain, Staff Reporter
- Published: 23:03 August 6, 2007
Dubai: Gargash Enterprises, the Mercedes Benz agent in Dubai and the Northern Emirates, hopes to sell 20 per cent more cars this year than what it sold in 2006.
The company sold around 4,000 cars last year while it recorded sale of more than 2,000 units during the first six months this year.
"The target this year is 4,800 cars," said A. Divakaran, a senior manager at Gargash Enterprises, adding that the Dubai Motor Show in November would serve as a boost.
Gargash is opening a new car showroom in Ras Al Khaimah and a used-car outlet in the new retail park in Al Awir. The showroom in Ras Al Khaimah will be the main supply point for used Mercedes-Benz to the Northern Emirates, the company said. It plans to open another showroom on Shaikh Zayed Road.
According to Gargash, the sale of new cars is on an average four times higher than those for used cars.
However, it is looking for a 50 per cent increase in the sale of used cars this year.
A leading Dubai car dealer had in June predicted a slowdown in new car sales amid rising cost of living in the UAE. He had also cited a trend among expatriates from some countries for delaying car purchases.
"Expatriates from certain countries will be sending more money home. They will probably delay buying new cars till political situation improves at home," said Michel Ayat, general manager of Nissan dealer Arabian Automobiles.
He said overall market is expected to grow between 13 and 15 per cent this year.
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