Tuesday, Jul 28, 2015

Dubai: Automobile dealers, both old and new, do not expect the hike in petrol price to affect their businesses.

“Some people may downsize from bigger engine to smaller engine. The rise of close to 50 fils will not impact much. It will be an additional expense of Dh150-Dh200 per month. It is not much,” said Mihir Desai, sales manager at a local car showroom in Dubai.

He said that people who are very calculative will go for 1.8 litre engine rather than going for 3 litre engines as smaller cars are more fuel efficient but those rich and affluent will not be bothered by the increase and will stick to the gas-guzzling vehicles.

Diesel cars are not sold in the Gulf and all the cars sold are petrol as per Gulf specifications.

Shah Basharat, product manager for Mazda cars at Galadari Automobiles, said that the hike will not make “any impact”. There could a shift among the buyers but it will not be massive.

“People who drive big cars are not bothered about the hike, even if the fuel prices are doubled. Cars are not a luxury here; it is the convenience that matters most. The hike will not affect a buyer,” he said.

A buyer now has many options depending on his pocket size, he said.

Shakeer, a sales advisor at a second-hand car dealer, said that the price increase may affect only the lower-end of the segment.

“For others, it will be business as usual. Families may cut down their weekend trips or households will start to think about cutting their expenses somewhere else,” he said.

He said that removing subsidies have met some uproar initially, like in India, but it will help in consolidating government finances and support the national economy in the longer term.

P.G. Haridas, sales manager at 4X4 Motors, said that those intended on driving gas-guzzlers would not be deterred by an increase in petrol prices. He added that second-hand car dealers would be affected by competition from dealers and not fuel price hikes.

An industry expert said that hybrid cars are not a big hit in the UAE so far as it is expensive by Dh20,000-Dh50,000 compared to a normal petrol car. “I don’t expect it [hybrid cars] to be a game changer here as price of petrol is cheaper in the UAE than in other parts of the world,” he said.

By Naushad K Cherrayil Staff Reporter

Gulf News 2015. All rights reserved.