BMW Middle East cautiously optimistic

Dubai: Luxury carmaker BMW reported growth of five per cent year to year in Middle East Sales for 2008, and unveiled plans for further regional expansion in Saudi Arabia and the UAE.

Nearly 16,000 vehicles were sold by BMW Group in the region last year, with Iran recording the largest market growth in sales with 191 per cent, and Dubai recording the highest number of sales with 4,421, followed by Abu Dhabi with 2,463.

Nonetheless, the last two months of 2008 had a dampening effect on overall sales figures for the year. In the first ten months of 2008, BMW Middle East reported 12 per cent sales growth, but finished the year on a more disappointing five per cent over 2007. Managing Director Phil Horton qualified that "all manufacturers are suffering from the credit crunch."

Despite the economic downturn afflicting the automobile industry globally, Horton sees a more measured impact in the Middle East, claiming the "demand for [luxury] cars remains healthy".

Both Horton, and James Crichton, Director of Sales and Marketing, cautiously refrained from offering sales projections for 2009. "Right now it is very difficult to predict what's going to happen in 2009," said Crichton, while Horton admitted that "we are aiming to maintain volumes of 2008."

Plans for dealership expansion include a $150 million (Dh550.95 million) investment in Saudi Arabia, and a $220 million investment in Abu Dhabi and Al Ain. The car maker is also planning to launch its first ActiveHybrid model in 2009 as the next stage in the company's global sustainability strategy.

The X6 ActiveHybrid will use almost 20 per cent less fuel than a comparable vehicle with a standard combustion engine.