Germany car maker BMW rode out 2003 successfully in the Middle East, winning higher market share despite flat sales mainly due to the strong euro.
But fresh investments coupled with the launch of three to four new models will lift sales in 2004 and beyond, company officials said after the grand launch of three new cars in the capital on Saturday night.
BMW clocked sales of 10,250 vehicles in the Middle East in 2003, just 50 units higher than in 2002 although it increased its market share by 3.5 per cent in the luxury car segment.
"Sales were flat compared to the previous year but despite the problems of higher exchange rate of the euro, we are pleased about the sales. We now have a market share of about 38 per cent in the luxury car segment," said Ehab Shouly, Marketing Manager Middle East for the BMW Group.
BMW has allocated an investment outlay of $120 million with its partners for the region in 2004 in the form of new showrooms and other facilities.
At least eight new showrooms will be opened this year which include a Dh20 million showroom in Sharjah. A Dh35 million showroom in Kuwait touted as the biggest auto facility in the world will open in April in Kuwait while another will follow in Lebanon in May.
BMW opened three new showrooms in Saudi Arabia in Makkah, Jeddah and Riyadh and another is planned for Dammam. A new flagship showroom costing $20 million will be opened in Oman.
"Investments totalled around $300 million in the Middle East from 2001-03 and BMW, the Mini and Rolls Royce will continue to invest in this region," said Shouly.
"Growth in sales will be sustained this year and beyond with the introduction of some new models such as the X3, the Baby BMW and others.
However, sales also depend on the Euro's exchange rate."
The euro went up 20 per cent but BMW raised prices only 7-10 per cent depending on the model, absorbing 50 per cent of the increase in prices along with its importers in this region.
The UAE continued to lead as the best market in the region in 2003, achieving sales of 4,000 vehicles, followed by Saudi Arabia with 2,200.
Qatar emerged a new, fast growing market with sales touching 700 units in 2003, a 68 per cent growth. "We expect it to grow fast along with Lebanon, another good market for us. We will focus on smaller markets because of the potential as there is no tremendous growth in the big markets."
While the luxury car market is expanding in the UAE and some other markets, a noticeable trend is brand migration. "There isn't much brand loyalty these days and people want the latest, the best and image is more important. Inter-brand migration is happening here," said Shouly.
The new look BMW X5, all new X3 and 6 series Coupe were unveiled at a launch here.
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