Vehicle sales in the Gulf countries increased by eight per cent to 1.8 million in 2014. Saudi Arabia leads the list with the annual sales of 864,488 followed by UAE at 401,106. Oman is positioned third with 218,185 vehicles

The worldwide automotive industry has been enjoying a period of relatively strong growth and profitability, and annual sales have reached prerecession levels in some regions. In 2014, the global automotive market sales hit 87 million units and is expected to reach 91.5 million in 2015. While some major global regions witnessed economic headwinds (resulting in stagnant auto sales growth), the US was able to maintain robust sales in 2014 - enough to propel sales to pre-crash levels, thus contributing to the marginal global sales growth. However, the outlook in Europe is much weaker as the region is emerging fitfully from a six-year sales slump. And sales have plunged in Russia and South America - they were down by about 25 per cent and 15 per cent, respectively, in August 2014 year-over-year. Meanwhile, the Indian market's performance has been inconsistent. And growth in China - the world's largest vehicle market - has slowed, even though investments by most original equipment manufacturers (OEMs), which are betting big on future demand, continue to ramp up.

In the GCC, which has one of the world's highest ratios of cars to households, most of the countries reported a surge in overall passenger car sales, which act as an important indicator of business activity, reflecting the region's consumer spending boom. Demand for ultra-luxury cars has also increased significantly. The major factors driving car sales in the GCC, are high replacement demand from consumers with significantly high disposable incomes, the large affluent expatriate population and ultra-low, subsidised petrol prices.

Vehicle sales in the Gulf states increased by 8 per cent to 1.8 million in 2014, according to market researchers at focus2move. The region's largest market is Saudi Arabia with 2014 vehicle sales of 864,488, up 12 per cent. No 2 was the United Arab Emirates with sales of 401,106, a rise of 11 per cent. Oman was No. 3 with a flat volume of 218,185.

The UAE Market is one of the fastest growing markets in the world. The massive geographical and societal expansion, the ambitious government plans and huge investments in the infrastructure and major global events (Expo 2020/ various exhibitions including motors etc.) makes this market one of the highest potential markets in the region, if not in the world.

In Oman, over the first 10 months of 2014, a total of 99,391 passenger cars (PCs) were registered in Oman, according to the National Centre for Statistics and Information. August (14,576) and September (14,691) were particularly strong months for new registrations (all segments).

However, according to Carmudi's Car Dealer Survey, only 28 per cent of car dealers in the Middle East reported an increase in sales as a result of the changing economic climate and changing infrastructure in the region, while 52 per cent reported that sales have decreased over the past twelve months. The other 20 per cent of car dealers reported no changes in car sales over the last year.

In the five-year period to 2018 the market for passenger cars and light commercial vehicles across the MENA region is forecast to grow by around 50 per cent, according to Oliver Wyman, a global management consultancy. These predictions are echoed by Opel, part of the US General Motors Company, which expects average annual growth in the car market of 10-15 per cent across the Middle East. Total vehicle sales in MENA are about 3.9 million a year, but could grow to nearly 7 million by 2020, according to a report from the Boston Consulting Group, which sees the largest projected sales increases in Saudi Arabia, Algeria and Iran. Apart from Iran, Saudi Arabia's vehicle market, dominated by Japanese brands, is by far the largest market within the Middle East. It is followed by the UAE, Israel, Egypt and Kuwait, while Morocco and Tunisia are North Africa's market leaders.

Buying and selling online

Middle Eastern car dealers are flocking to the internet to reach potential consumers. As many as 88 per cent of car dealers surveyed by Carmudi report using the internet to advertise to customers, while 52 per cent of the car dealer survey participants are actively using social media to reach customers. And 20 per cent are actively using dealer sites to reach their customers.

According to some reports, consumers are looking for a seamless car-buying experience that includes the purchase decision, financing, and insurance - and both customers and dealers are motivated to speed up the transaction. Most vehicle purchasers already browse online to gather the information they need to choose a car, and although they still may want to take a test drive, many also have expressed that they would like to have an online "buy now" button and a no-pressure auto purchasing experience. Obviously, even as the Internet gains in importance as a shopping channel, dealers will still want to use the test drive as a way to get face-to-face with consumers and close a sale. Accommodating these shifting attitudes about buying a car will require equal changes to dealers' processes, including investment in new technology. Dealers earn little from new-car sales; their profits come largely from service, parts sales, and used-car sales. They will, however, continue to be an important part of the sales chain, and the lack of a robust dealership network will for the foreseeable future be a competitive disadvantage for any automaker.

Local production in GCC

In the GCC region, the next few years could also see the expansion of domestic production of vehicles and car parts. Saudi Arabia is taking the lead by training 10,000 young Saudi technicians and specialists, in cooperation with the Japanese company Isuzu and the University of Japan.

The Oman government has bought into an Italian supplier as part of its goal to develop car production in the country. The state-owned Oman Investment Fund last month bought a 40 per cent stake in Italian thermoplastic parts supplier Sigit SpA.

The move is part of Oman's plan to begin production of auto parts in the country within two years and open a car plant around 2020, according to the fund's chief economist, Fabio Scacciavillani. "Oman has the financial strength to attract parts suppliers first and then automakers by offering them a combination of oil-derived products, low energy costs and access to the Greater Arab Free Trade Area," Scacciavillani said.

Gulf countries have invested in automakers in recent years. Kuwait's sovereign wealth fund is Daimler's largest shareholder with a 6.8 per cent stake. Qatar is Volkswagen's second-biggest shareholder with a 15.6 per cent stake. Privately owned Sigit supplies thermoplastic and rubber components to automakers including Fiat Chrysler Automobiles, General Motors, Volkswagen Group and Renault. It had sales of 72.5 million euros last year. The supplier employs 800 people and has nine plants - five in Italy and one each in Poland, Serbia and Morocco, plus a joint venture in Russia.

Extra-large happiness with 2016 Toyota Camry

Athletic, luxurious and intelligent…the 2016 Camry is not just that, it is also laden with a host of new and exciting design features

The recently launched 2016 Toyota Camry gives customers a lot to cheer about. Its aggressive front grille and bumper makes it stand apart from the crowd. Its new headlamps and elegant daytime running lights exude style like never before. The rear is equally impressive, with new combination lamps and bumper giving it a more sporty appearance. The distinctive looks are further accentuated by the stylish new design 17" alloy wheels on the new Camry.

And now, the 2016 Camry is available with Insurance for a year (Oman only), first year of registration and 1000 litres of fuel. In lieu of the above, customer can choose to avail of the cash gift of RO475.

Every Camry customer also gets a Gift Voucher for RO25/- and a coupon to an exciting raffle in which 9 units of 16YM Camry GL Executive are to be won.

"The earlier one buys and enters the raffle, the higher are the chances of winning," the spokesperson says. This exciting campaign started on the 7th June 2015 (Sunday) and will last until August 5, 2015 (Wednesday). Benefits are applicable for all purchases except those made by government organisations and ministries. Weekly raffle draws will be held from June 14 to August 9, 2015, on all Sundays except July 19, 2015. Customers will be eligible for the raffle only upon taking delivery of the vehicle during the campaign period after completing necessary formalities and not against booking. (Conditions apply. Further details at the Toyota showroom).

The elegant interior of the new Camry interior is adorned with new black wood grain finish. The newly designed steering wheel is equipped with audio and Bluetooth controls. There is a sophisticated new auto light control system and now even the base grade comes equipped with cruise control.

Depending on the model grade, the Camry offers a new 7" SD card type navigation system.

Indeed, drivers will love the Camry interior but so will passengers. Everywhere you look and touch, the Camry presents premium materials, an overall roomier feel and enhanced amenities. The high-quality upholstery is meticulously crafted, enhancing the Camry's upmarket appeal. The centre stack shows off a high-tech, upscale look that more smoothly integrates with the console. The centre console plays a larger role than ever in modern cars, accommodating all manner of personal items as well as presenting multi-media functions. The Camry's console tray offers more storage and a convenient power source in the storage box. The new Camry has a rigid body structure, enhanced aerodynamics and offers the quietest ride ever. The upscale interior, and advanced instrumentation with intuitive controls help keep the driver safely focused on the road. This may be the best-handling and most comfortable-riding Camry ever. Beneath the bolder body lines the Camry's body structure has been bolstered with additional spot welds to enhance rigidity. Refined suspension systems in all models put an edge on handling agility while taking the edge off bumps.

In the areas of performance and safety, the Camry delivers outstanding power coupled with superb efficiency. The key attributes include a 2.5L Dual VVT-i Engine delivering 181HP and 6-speed multi-mode transmission.

Offering a real sense of value

Customers who purchase a new Mitsubishi will be entered in an exclusive draw with a prize pool of RO50,000

General Automotive Company (GAC), the official distributors of Mitsubishi vehicles in Oman, recently unveiled details of their highly anticipated Ramadan offer for 2015. In addition to offering customers free insurance, free service, free registration and cash gifts on the purchase of a new Mitsubishi, GAC will also be hosting a special draw with a cash pool of RO50,000 with lucky winners.

Beginning from June 1, customers who purchase a Mitsubishi Lancer EX, ASX, Outlander, Pajero Sport, Pajero or L200, will enjoy special Ramadan-only benefits including free insurance, a two-year/30,000Km service package, free registration and a cash gift of up to RO1,000. Additionally, during the four week period of Ramadan any showroom visitor also stands a chance to win an iPhone 6, with one phone being given away each week during the holy month. Customers who purchase a new Mitsubishi during the offer period, which will come to a close on July 30, will also be entered in an exclusive draw with a prize pool of RO50,000. The draw will be conducted at the Mitsubishi Showroom in Athaiba on August 12, 2015 and will see over nearly 100 customers strike it lucky.

Highlighting the 2015 Ramadan offer, Rajesh Sharma, national marketing manager of GAC said, "Our latest Ramadan offer has been designed to offer our customers a real sense of value that will go hand in hand with the power, reliability and performance that Mitsubishi vehicles are known for, a complete package that provides total peace of mind motoring. Especially for 2015, we're also adding to the excitement with a great prize pool of RO50,000 for new car buyers. Furthermore, our special iPhone four weekly draw starting in Ramadan ensures that everyone has a chance of being rewarded during the holy month just by visiting one of our 12 showroom locations."

For more information on the new Ramadan offer or to book a test drive, customers can visit their local Mitsubishi showroom, go online to www.mitsubishioman.com or follow the brand on its 'Mitsubishi Oman' facebook page or twitter @mitsubishioman.

GLK 250 - Made for Oman

Throughout the Holy month of Ramadan, Mercedes-Benz GLK 250 can be purchased for only RO17,995 with RO1,500 cash back

Offering a refreshing escape from the ordinary, the dynamic GLK 250 is winning the hearts of families across the Sultanate. As more and more people search for the ideal car that combines character with strength, Mercedes-Benz Oman has created a GLK package on the versatile and family-friendly vehicle throughout the Holy month of Ramadan.

With its ground-breaking looks the GLK 250 is characterised by an exciting mix of boldly-drawn lines and generously-proportioned surface areas. Its distinct design clearly sets it apart from the crowd and gives the GLK 250 a beefy, muscular appearance, which is all the more remarkable given its relatively compact exterior dimensions.

Throughout the Holy month of Ramadan, the GLK 250 can be purchased for only RO17,995 with RO1,500 cash back. In addition to this, GLK 250 buyers will also avail of the Mercedes-Benz exclusive Ramadan promotion, which includes a three year or 45,000kms service package, three years unlimited mileage warranty, three years Mobilo on road assistance, free registration, V-KOOL heat control film as well as a special gift for mind, body and soul.

Athletic in nature and a well-rounded performer, the GLK 250's 211-hp (at 5,500 rpm) 1.9L four-cylinder engine is quick off the line with an acceleration of 0-100 km/h in 7.9 seconds and a top speed of 235 km/h. A car that seems to have been designed with Oman in mind, the GLK 250 has suspension that adjusts automatically to match road conditions, making it relaxed in every situation and as much at home on the school run as a weekend trip or family adventure. The GLK 250 achieves its superior performance and an exceptionally comfortable ride with low fuel consumption and reduced emissions.

Such solidity rarely comes with quite so much flexibility but the GLK 250 is an exception. Engineered to protect, as soon as the GLK 250's engine is started, its sensors are on the alert, increasing safety for the occupants and other road users. The optional ATTENTION ASSIST system can remind the driver to take a break if signs of drowsiness are detected. Another option, Lane Keeping Assist, can detect if there is a risk of straying out of the traffic lane and alert the driver to help avoid a collision. The GLK 250 is equipped with the iconic brand's most advanced intelligent safety features, guaranteeing the freedom that comes from knowing that wherever you want to go, you are in safe hands.

Unrivalled comfort

Honda announces the launch of All New 'Odyssey J', which is available in the base grade namely EX and the top grade EX-V with leather

Oman Marketing & Services Co, Honda distributor in Oman, has recently launched Honda Odyssey J in Oman. All New Honda Odyssey J exudes luxury and unrivalled comfort. The All New Odyssey J is the next generation minivan that sets the bar in automobile sophistication.

The All New Honda Odyssey J in available in the base grade namely EX and the top grade EX-V with leather.

The All New Odyssey J is powered with the Earth Dreams Technology 2.4-liter, DOHC i-VTEC four-cylinder engine and Continuous Variable Transmission. The engine combines outstanding torque of 225N-m @ 4000 rpm and generates an output of power of 173hp @ 6200 rpm.

The All New Odyssey J has received a five-star rating from the ASEAN NCAP as well as Australian for superior Adult Occupation Protection and safety performance.

Main Features and Equipment

Daytime Running Lights (DRL), LED Tail lights, Smart Paddle Shift, Bluetooth, Rear View Camera (Day/Night mode), 7" Touch Screen Audio Display, Cruise + Audio Control on Steering Wheel, i-MID, Door Mirror Side Turn Signals with Power Tilt, Chrome outer handles, Conversation Mirror, Bumper Air Spoiler, One-Touch Driver Side Power Slide Door, Multi-function 2nd Row Centre Seat, 3rd Row Magic Seats (fall down) & Head Light Auto-Off timer are standard feature from base grade (EX) onwards.

  • Total Six Airbags - Dual stage, Multiple threshold Front Airbags

  • Anti-lock Braking System (ABS) with Electronic Brake Force Distribution (EBD) +Brake Assist (BA)

  • Vehicle Stability Assist (VSA)

  • Hill Start Assist (HSA)

  • Blind Spot Information

  • Motion Adaptive Electric Power Steering (MA-EPS)

  • ISOFIX, Immobilizer

  • Brake priority logic (Break override) only in EX-V grade

  • Next Generation Advanced Compatibility Engineering (ACE) Body Structure to enhance occupant protection & crash compatibility in frontal collisions

  • All the above highlighted safety features are standard across all the grades

  • Push Button Start/Smart Entry, Leather Seats & Trim, One-Touch Power sliding RR Passenger Doors, Auto LED Head Lights, Active Cornering Lights, 8-way Power Driver Seat, LED License Light, Front Fog lights, 2nd Row Seats Captain Cradle, Tri-zone Auto AC, Electric Sunroof with Tilt, Aero Design Bumper, Integrated Sunshades are standard features in EX-V grade.
Enhancing customer satisfaction

Lexus has unveiled four years/ 40000 kms free service and more during this Ramadan

Taking a big leap to enhance customer satisfaction and ownership experiences, Lexus has unveiled exclusive offers this season on purchase of any Lexus. Enthusiasts can look forward to four years / 40,000 kms Free Service (one year / 10,000 kms, whichever is earlier), free registration and a premium Amouage perfume. For more details customers can visit the nearest Lexus showroom where the friendly sales staff is happy to help you with any of your queries.

According to a spokesperson from Lexus Oman, "At Lexus we are overwhelmed with the immense liking the people in Oman have for brand Lexus. And we look forward to taking this even further with the introduction of the 4 years / 40,000 kms free service package. We are sure that with this offer as part of the exclusive offers, customers will now find it even more attractive to own their dream Lexus."

"As you will notice Lexus has aimed to cater to the demands of its customers' wishes through the introduction of engine variants across its popular models like the IS, ES, GS and the NX. With the introduction of the NX, Lexus has brought to life, for the first time ever, a 2.0 litre turbo engine that has paved the way for future ambitions."

Lexus enthusiasts in Oman have 10 premium models to choose from - the IS, ES, GS, LS, RX, GX, LX and the recently introduced RC, RC F and NX.

The IS looks fast and powerful. The IS350 is available with a 3.5 litre V6 with D4-S direct and port fuel injection which produces 312 hp @ 6,400rpm, 38.5kg-m/4800rpm torque.

The Lexus ES is equipped with a lot that many would want out of their luxury vehicle. It is quiet, has a well-crafted cabin, a plush ride and commendable performance from a powerful, nearly silent engine. The Lexus ES is available in options of a 2.5L, 16 Valve, DOHC engine churning out 181 Hp and 24 Kg.M. of torque and the 3.5 Litre, V6 engine churning out 272 Hp and 35.3 Kg.M. of torque.

Engineered for responsive power and superior handling, the latest GS also delivers sophisticated refinement, leading-edge innovation and advanced technology that establishes the future for performance luxury sedans. The GS is available in options of a 2.5L, V6, 24 Valve, DOHC engine producing 207 Hp at 25.8 Kg.M torque and a 3.5-liter V6 producing 312 at 38.5 Kg.M torque.

LS is complemented with many exceptional improvements including three world firsts, no less than 15 Lexus firsts, and a host of technical innovations and features. The LX570 possesses under its hood a 5.7-liter V8 engine that delivers the punch and towing power demanded in this segment. The Lexus GX460 is perfect for families who seek no-holds-barred adventure on their days off, yet also desire an easy-driving, comfortable and versatile luxury SUV for the work week. The Lexus GX460 features a 4.6L V8 that provides outstanding power and responsive performance.

The five-seat Lexus RX350 is a midsize luxury crossover SUV equipped with that's offered in one well-appointed trim level. The Lexus RX350 is powered by a 3.5-liter V6 that produces 275 horsepower and 35.5 kg.m of torque. The RC is truly a unique high-performance machine that emphasizes the attraction of a luxury two-door vehicle. Producing power output per litre second only to the LFA supercar in the Lexus range, the RC signals the next evolution of Lexus powertrain engineering.

The RC F has an all-new 5.0-liter 32-valve V8 engine that provides maximum power at higher engine revolutions than previously possible. The turbocharged NX combines the expertise of racers within the engineering team and the impeccable touch of Lexus luxury through an exciting and sporty design to set a new benchmark in the automotive world.

© Oman Economic Review 2015