Car promotions hit overdrive

Thursday, Aug 27, 2009

Gulf News

Dubai: Car dealers nationwide are slashing prices to entice promotion-hungry customers this Ramadan.

Most car advertisements now seen in print media are not introducing new models, but are trying to attract attention to 2009 models that are going for low prices with easy fin-ancing options and a lack of down payments.

"From January onwards, we were planning for these promotions because we expected the market to get back up in Ramadan," Arijit Basu, assistant general manager for sales and marketing at Honda.

He said families make purchases during Ramadan and this drives sales up during the month. Basu said that the company has seen an increase in showroom traffic, of up to 30 per cent. From mid-July to August there was traffic but purchases were thin.

"The UAE has still seen a spike in sales," he said, adding that Ramadan is a time that people wait for because it comes with special offers.

Comparing discounted prices during this Ramadan to previous year's prices, the overall price is much lower as the base prices have reduced due to weak global market conditions.

"Overall, the market is not the best. Offers are much stronger this year. It is the best time to buy right now," said Basu.

While traffic to the showroom was high in the time leading up to Ramadan, purchases are taking place in conjunction with the offers.

"We will see some green shoots this Ramadan. In the first 20 days of August, we have already witnessed a change," said Basu.

Also on the offer-wagon is Nissan distributors, putting cars up for sale with as much as Dh10,000 off.

"Ramadan is an occasion for retailers and brands to develop customer-centric offers based on the increased buying activity. At the same time, there is a higher expectation from customers to get good deals during this festive period," Michel Ayat, chief executive of Arabian Automobiles, an A.W. Rostamani Group company, the exclusive dealers of Nissan, Infinity and Renault in Dubai and Northern Emirates, said.

Ayat said that promotions for the month are a tradition for distributors.

This year, its campaign mainly covers 2009 model year products as well as certain models from last year.

"We are confident that customers are well informed of the best deals in the market and will grab the current unbeatable offers on Nissan and Infinity vehicles," he said.

The distributor claims to be amongst the first Arabian distributors in the UAE to launch the new 2010 model year product ranges during Ramadan.

While some retailers see Ramadan as a rescue from the prevailing global market conditions, the previous quarter already saw a turnaround in car sales according to a report on the country's leading auto players by AutoMiddleEast.com, an auto industry analyst.

Pankaj Dev, managing director of the analysis firm said: "Clearly, the worst of the [global] downturn is over. Distributors are now in a positive frame of mind. There is confidence and optimism in the regional industry".

Dev said that market players are "determined to take advantage of the current climate to build for the future and their marketing campaign reflects this.

"Buyers stand to benefit from this both in the short term and medium term as the dealers opt for turnover as their main priority".

To increase sales, dealers have turned towards greater promotions and discounts, during periods of opportunities such as festivals and Ramadan.

By Nadia Saleem, Staff Reporter