GM plans to launch 13 new models

Dubai: General Motors (GM) is hoping to make more of a mark in the Middle East market with the release of 13 new models across its Chevrolet, Cadillac, GMC, Hummer, Saab and Opel brands.

With the influx of new generation drivers in the market, Terry Johnsson, GM's managing director in the Middle East is confident they will have a large portion of the market share.

"Saudi Arabia, for example, has a large percentage of the population approaching driving age. In 2006, we are expecting 30,000 new drivers," said Johnsson.

Despite high gas prices Johnsson says sales of larger sports utility vehicles are remaining high, new generations of the Cadillac Escalade and the Chevrolet Tahoe, are making their Middle East debuts at the show due to increased demand.

"We are coming off our highest sales year ever for SUVs, definetly demand for those vehicles may not grow as fast as the smaller vehicles but the need for bigger vehicles will remain stable."

A US based industry analyst, who asked not to be named, is confident that the market is more than equipped to handle another big automobile brand to compete.

"Rapid population growth, a rapid influx of buyers in the UAE and across the GCC; a lack of good public transportation and larger family sizes requiring more cars are all contributing factors for the lucrative growth of the industry," said the analyst.

In the Middle East, the automotive manufacturer accounts for a 13 per cent market share. While the UAE stands third in the region for GMs market share with up to 8 per cent trailing behind Saudi Arabia and Kuwait which average around 18 per cent each.

"The local market has been booming, where Kuwait and Saudi have seen stable growth. This year and certainly by next year the UAE will overtake Kuwait in size, making it the second largest market."

Future growth, Johnsson added, will be GMs investment in its products and services in the region. The company is pumping $60 million in parts distribution centre, as well they will open service and training centres.