Foot down, full throttle ahead

Auto sales are up, new models are being launched amidst great anticipation and car manufacturers are pinning their hopes on the thriving UAE market.

In the current financial climate the auto market around the world is facing difficult times, with fewer sales and smaller profit margins forecast for many of the big names in the industry. But our love affair with the car is still going strong.

In the Middle East, the auto market has yet to feel the crunch in earnest, as is evident by the number of new models from several leading auto manufacturers being launched in the region at motor shows. We still love our cars, be they gas-guzzling SUVs, luxury cars, family sedans or zippy little two-door sports cars.

Strong automotive industry

According to a new market research report on http://www.companiesandmarkets.com car sales in the UAE rose by 37 per cent year-on-year in the first half, the highest growth among the markets of the Gulf Co-operation Council (GCC). Data from the Middle East Automobile Council (MEAC) says total GCC sales were up 26 per cent year-on-year, reflecting the strength of the automotive industry in the region compared to the global car sales growth of 0.8 per cent.

The Al Rostamani Trading Company said that Suzuki sales in the UAE were up 197 per cent year-on-year in the first half. Volkswagen also reported strong sales growth of 69 per cent, which far exceeded its 42 per cent growth for the Middle East as a whole. Meanwhile, General Motors' UAE sales grew in line with the overall market growth of 37 per cent year-on-year, with total sales of Chevrolet, Cadillac, GMC, Hummer and Saab to 11,972 units.

According to Umberto Maria Cini, Managing Director of Maserati SpA, Italian luxury carmaker Maserati has tripled sales in two years from its base in the Dubai Airport Free Zone. The premium vehicle segment boosted sales in both the UAE and GCC. Premium car sales in the UAE have grown by 56 per cent between 2005 and 2007. The UAE accounts for 40 per cent of the GCC's luxury sales, with Saudi Arabia contributing 21 per cent and Kuwait 14 per cent.

By 2012, passenger car sales in the UAE are predicted to reach almost 534,000 units, 80 per cent more than 2007 levels. Premier Motors — the Abu Dhabi and Al Ain subsidiary of Al Tayer Motors — will highlight the newly launched Maserati Quattroporte S at its stand during the Abu Dhabi Motorshow. The Maserati GranTurismo S will also be showcased.

Car manufacturers hopeful for next yearBMW, the European car manufacturer, witnessed 12 per cent growth in sales in the first ten months of this year, a company official said. In a recent press release, Phil Horton, managing director for the Middle East region of BMW, says, "We are still showing growth, and predicting similar growth again for next year because the economic fundamentals here are stronger than many other parts of the world."

The new BMW 7 Series will offer two engine variants for the Middle East market — the in-line six cylinder 740iL and V8 750iL, both with twin-turbo technology and direct fuel injection. The luxury carmaker reported selling 13,326 units year to date. The company expects to close the year at about 16,500 automobiles under the BMW brand, as well as 750 units of the Mini, Horton said.

At a recent press conference, Nissan and Al Dahana announced the establishment of a joint venture company called Nissan Gulf FZCO (NGF), to "enhance Nissan's marketing and sales strategy in key GCC markets and introduce a full-fledged financial services platform through all Middle East and North African countries".

Nissan Gulf plans to sell 160,000 vehicles a year by 2012, in Saudi Arabia, Abu Dhabi, Kuwait and Bahrain. In the Middle East, sales volume is expected to double, from 200,000 units in 2007 to more than 400,000 units in 2012, with a commitment to a significant increase in market share. Company officials also said they plan to introduce a new model every month until 2012, adding up to a total of 60 new models.

As for sales of Nissan's premium brand Infiniti, its models in the GCC have grown from approximately 4,000 vehicles in 2005, to 5,000 in 2006, 7,000 in 2007 and in fiscal year 2008 they are expected to be in excess of 11,000 vehicles.

Chevrolet set to impress

Press reports state the latest Chevrolet Malibu is
set to impress visitors of the Abu Dhabi International Motor Show with its design and value for money. The award-winning Malibu, which has received a host of accolades across the U.S. with around 30 industry awards to its name, will be in the UAE in the second quarter of 2009.

"From the outset the Chevrolet Malibu was designed to be the best midsize car in the market, and we are so excited about its arrival to the Middle East," says Karen Toor, Marketing Manager of Chevrolet cars in the Middle East. "The Malibu is a great-looking car that offers sensational value for money, a hallmark of the Chevrolet brand, and Middle East customers will be able to experience it for themselves when it hits showroom floors in the second quarter of 2009."

Another Chevrolet car making its debut and going on sale during the second quarter of 2009 is the all-new Chevrolet Cruze, a dynamic four-door sedan.

The Cruze will be available with an Ecotech 16-valve, 1.6-litre (112 hp) and 1.8-litre (140 hp) gasoline engines featuring Variable Valve Timing (VVT) on both inlet and exhaust sides, giving more power as well as better fuel efficiency and lower emissions.

"Chevrolet has always stood for expressive value and the Cruze delivers on that promise like never before with its design, quality, materials and great style inside and out. The fit and finish for gaps and interfaces sets a new standard for this segment," says Toor.

So no matter how tough the credit crunch, our interest in the latest models and brands will always drive growth.