Dubai
It is not everyday that an automotive brand has its CEO on hand for a new model launch outside of high-profile motor shows in New York, Paris or Frankfurt. But for the French carmaker Peugeot, this is not just another day, and more so in the Gulf.
For the 3008 SUV introduction in Dubai last week, on hand was Jean-Philippe Imparato, the Peugeot Brand CEO and member of the executive committee, as well as Jean-Christophe Quémard, executive vice-president for Africa and Middle East territory and a member of the managing board. Clearly, this was not just another launch.
What it means is a complete reset of Peugeot’s plans and expectations from the region.
“We sent the message to our Gulf partners this morning — Peugeot is back,” said Imparato. “The brand is back. There is absolutely no such thing as a little opportunity. We now believe we have the SUV line-up to compete in these markets. With this launch, we have the key elements to succeed in the GCC. And we want to send a signal this is not a one-shot operation.”
Until now, Peugeot’s presence in the Gulf was more of a bit player; it had its moments in the early part of the last decade when a couple of its entry-level hatchbacks caught the attention. But the competition soon started making their own moves into the hatchback space and Peugeot was not able to get the momentum back.
But, now, with the 3008 SUV, and to be followed by the seven-seater 5008 and the snazzy (you could say very French) 2008, the manufacturer believes it has enough to garner attention all over again.
“We want to be more focused this time, but step by step,” said Imparato. “There’s no need to make big announcements with big numbers. We are coming in from low figures and will gain the appetite of GCC customers as we go along.
“There’s one thing we will not do — push cars onto the streets. What we want is good profitable growth with our partners.”
Now, that’s going to be a tough ask. The last two years have been particularly tough for the Gulf’s auto retail sector and it hasn’t got any better in the year to date. Dealerships are piling on the incentives if it means getting one more buyer to sign up.
Outside of the Gulf, Peugeot’s doing well enough in the region. It continues to be extremely popular in Iran and key North African territories. That being the case, wouldn’t it have been better to club the Gulf operations as part of a bigger regional grouping rather than operate as a standalone division?
“What we want to do is have operations close to the market,” the CEO said. “I have an office in Tehran, Istanbul and Casablanca. And let’s admit it — we have been so long not focused on the Gulf market. Believe me, there are lots to do that require a dedicated office and team. It means working on the network development, building up residual value for the brand, get the after-sales right.”
For the medium-term, its SUV and light commercial vehicles will represent 80 per cent of the brand’s line-up in these markets. “We will have one new car a year in the region, cherry-picking what we want to launch,” the CEO said. “The boss will be the customer, so to speak.”
At the global level, the automotive group — which also owns Citroen and the high-end DS — has been having things its way. Sales were up 5.8 per cent to 3.15 million units, while the operating margin inched up to 6 per cent from 5 per cent in 2015. Revenues driven by automotive sales were just over 37 billion euros (Dh149 billion).
And then in March, the Group announced it was acquiring Opel from General Motors for 2.2 billion euros.
And what sort of volumes will Peugeot be comfortable with in the Gulf? Imparato’s got a ready answer for that one — “When we announced the new 3008 late last year, there were so many questions about volumes. My answer has been consistent — if I had to choose between selling one car more and one beautiful car more I will always choose the latter.”
BOX
Peugeot wants the 3008 to do the talking
Peugeot couldn’t have chosen a better model than the 3008 to make a statement in the Gulf. Crossovers have been winning over regional buyers, who do seem open to a form and function beyond the standard definition SUVs. Into this space, the 3008 — named the “Car of the Year” at the Geneva Motor Show — with its clear European/French sensibilities will have a role.
Prices start from just over Dh89,000, with engine specs in 1.3- and 1.6-litre. “Four months after we introduced it, we have sold 160,000 3008s in the world, and 82 per cent of sales are levels 3, 4 and 5,” said Jean-Christophe Quémard, executive vice-president for Africa and Middle East.
