Life & Style | Motoring
Global financial crisis have left Middle East car market untouched
Car sales in the Middle East and the GCC have largely gone unaffected by the recent global financial turmoil, industry insiders said.
- By Natasha Marrian, Staff Reporter
- Published: 00:07 October 2, 2008
Dubai: Car sales in the Middle East and the GCC have largely gone unaffected by the recent global financial turmoil, industry insiders said.
Car sales in the GCC surged by 26 per cent in the first half of 2008 with the UAE alone experiencing a growth of 34 per cent, according to Renault Managing Director Mohammad Bennani. This growth was not expected to slow down any time soon.
Mature markets
Honda assistant general manager for the Middle East Arijit Kumar Basu said the global crisis had "no real impact" on sales in the region.
"Our customers are unique in this region. There are negative factors, like loan amounts but overall, the mood is still up," he said.
This was mainly due to the high oil price, he added.
Bennani said Renault held high expectations for its growth in the GCC.
"Actually, all automobile makers agree that there would be no growth in the so-called mature markets, the only way for car makers to grow is to look at the emerging markets. We do not expect a slow down in the GCC, it is a highly competitive market. The world's spotlight is on the region, it's attracting a lot of people, the love for cars in this region was also a surprise for me," he said.
Automobile market volumes doubled in the last five years with the number of cars on UAE roads increasing from 118,455 in 2003 to 296,675 last year.
Other countries such as Europe and America witnessed a downfall in sales by 3.2 per cent and 8.9 per cent respectively, while Asia saw marginal automotive volume growth of 3.6 per cent.
The SUV segment comprises 30 per cent of the market share, while the market is dominated by passenger cars with a share of 47 per cent. This is the segment Renault hopes to target with the Safrane, launched in September. The Safrane, with V6-2.3 litre and 2.0 litre 4-cylinder petrol engine options is designed to suit Middle Eastern driving conditions, Bennani said.
Share this article
Popular in Motoring
Life & Style editor's choice
-
Basque inflavour
Etxebarri restaurant, on the list of the 50 best eateries in the world
-
BMW X5 M brings a smile to your face
What the X5 M can do that the standard X5 can't with many sports cars
-
Things to see and do in Abu Dhabi
Explore takes a lap round the vibrant and ever-changing UAE capital
-
Articles
Baby Boomer: BMW's X1
Richard M Hammond gets acquainted with BMW's new baby X1
