Monday, May 14, 2012
Gulf News
Dubai As they work on getting more of their models on to local roads, dealerships representing leading European carmakers are keeping close track of the euro’s volatility. So far, they say, there is nothing to suggest the euro’s slide against the dollar would have a major impact on showroom prices here.
“That will not happen unless there is a true collapse of the euro and that would mean dropping well below the 1.30 [to the dollar] mark,” said Claudio Camera, general manager handling the Renault range at Arabian Automobiles, which holds the rights to the French brand for Dubai and the northern emirates.
“Our business plan for 2012 has been set on a certain range for the euro and we don’t foresee anything exorbitant happening in terms of customer prices.”
Shared sentiment
This is the sentiment shared by a couple of other local dealerships representing European brands. “While the euro cannot distance itself from the Eurozone crisis, strictly from a local car buyer’s perspective there are a number of mechanisms in place to ensure consistent pricing at our showrooms,” said a general manager at one dealership.
“Currency fluctuations are part-and-parcel of the automobile retail business. Just recently, Japanese carmakers had a problem with the yen’s appreciation; but any impact, if it all one was there, was limited.”
On his part, Camera’s contention is that AAC “should still be in a pretty healthy position through the rest of the year” vis-a-vis the euro situation.
For Renault and AAC, it is a crucial year. After the breakthrough in sales gains recorded on the brand’s line-up in 2009, AAC had two solid years selling 900 and 1,200 units. This year they are aiming to breach the 2,000 units mark.
New model line-up
“We are positioning the Renault [brand] against the key players and there’s no reason why we can’t do so against the Koreans and then the Japanese,” said Camera. “We are on parity with the competition. It was post-2008 that Renault finally had the model line-up that was developed for the customer and conditions in these markets. That was the reason why we grew in 2009 when the overall car market collapsed by 40 per cent.”
Now, to add variety to the mix, the dealership has introduced the Renault Duster, which can double as an off-roader. Priced upwards of Dh48,600, the 2.0-litre model is available in the 4x2 automatic and a 4x4 manual transmission versions.
“It offers you the practicality of driving in town but at the same time go off the proverbial track,” said Camera. “And instead of a traditional hatchback or a sedan, the customer can have a SUV.”
The dealership holds a lot of hope that the Duster would replicate the demand generated in Europe, where it was launched in mid-2010. Part of Renault’s Logan family, the units are made in Romania, Brazil, Colombia, Russia and India.
Ahead of the launch, the Duster was put through an extensive testing in mid-2010 in the region. Apart from retail sales, it will also be trying to win fleet orders.
By Manoj Nair ?Associate Editor
Gulf News 2012. All rights reserved.
