Mideast demand makes carmakers cautiously optimistic despite slump

Abu Dhabi: Top global automobile manufacturers, battered by the world econ-omic slowdown, said on Wednesday they remain cautiously optimistic about next year despite plunging vehicle sales.

They said 2009 will be a challenging year as tight margins mean they cannot cut prices when demand is weak.

Major players of the world auto industry, who have converged on the five-day Abu Dhabi Motor Show which began yesterday, showcased their latest models in the hope the demand in the Middle East will shore up their flagging sales elsewhere and improve revenues.

"We cannot slash our prices and yet we have to retain our customer base," a representative of Mercedes Benz told Gulf News.

The German automaker has sold 18,000 cars in the Middle East this year, higher than the 15,000 it sold last year.

Bennani Mohammad, managing director of Renault GCC, said that although 2009 will be a tough year for the French automaker due to the global crisis, it expects to do well in the GCC.

He said Renault is banking on the technological superiority of its cars to tide it over the global economic downturn.

"B and C segment cars are Renault's strength. We have a wide range of cars in the two segments," Mohammad said.

Simon Frith, managing director of Al-Futtaim Motors, which holds the Toyota, Lexus and Hino franchises in the UAE, said, "The year 2009 will be challenging year. We don't know yet how challenging it will be."

In a bid to woo cust-omers in the UAE, ailing US automaker General Motors introduced eight new models for 2009. Chrysler said it is launching one new model for next year.

Renault introduced four new models, Korea's Kia one, Toyota one, and Jaguar a limited edition sports car.

Mohammad said Renault will open three more showrooms in the UAE next year - one each in Al Ain, Musaffah and Fuj-airah.

It currently has two showrooms each in Abu Dhabi and Dubai.

Al Hilal Bank, one of the UAE's newest Islamic banks, said it has launched an instant car financing scheme.