Q4 expects some Aggressive Marketing Strategies
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EMIRATES INSURANCE SIGNS CONTRACT FOR CVS LITE
“Autodata is proud to announce the addition of Emirates Insurance to our growing list of customers.
Emirates Insurance are a significant player in the motor insurance market and have agreed a contract term of three years to use the state-of-the-art Car Valuation System Lite, designed especially for the Insurance sector.
We are happy to welcome Emirates Insurance on board and look forward to a mutually rewarding partnership”.
Pascal Persoon
General Manager
For more information on CVS Lite please send an email to info@autodata.ae
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Welcome to again another edition of Market Report where we continue to share our outlook on the market and car sales.
For October, we have to take you back slightly to August where Ramadan, as predicated, did not bring a buying frenzy but did show significant increases in volume from July, as much as 15% in some cases.
The total market now in October is up by just short of 8% compared to 2010, which is incredibly positive when we take into consideration there has been the most expensive natural disaster in history effecting overall numbers.
The initial reports from September are that targets across all brands were challenging as the brands position themselves for a big finish.
Targets have increased as much as 20% in Q4 compared to Q3. We predict there will be some aggressive marketing strategies at the end of the year as dealers aim for that historical end of year spike.
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In this issue of Market Report we do want to congratulate Al Habtoor Mitsubishi for becoming another advocate of PCP, others being; Toyota, Nissan, Honda, Volvo, and Jeep.
We all agree that PCP has been a long time coming and the more brands support the product the more chance it has of becoming the finance product of choice for the consumer.
Giving the customer the choice to drive a new car more often…..who wouldn’t want that?
Bill Carter
Head of Valuations
Autodata Middle East
Email: bcarter@autodata.ae
Bill Carter (1952) is head of the Valuations Department at Autodata Middle East.
Bill has been working in the automotive industry for 42 years, among which 16 years for Glass's Guide. The last three years Bill analyzed the new and used car market in the United Arab Emirates.
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Automotive Industry Forum
The Launch of the Dealer Council on September 19, 2011 turned out to be a great success, greeting a total of 28 participants consisting of Manufacturers and Franchise Dealers representing 18 brands. One representative in particular (who shall remain nameless) said: “it is great to see the barriers coming down between dealers, the more we communicate, the stronger the brands become”. After evaluation the decision has been made to rename the Dealer Council as the “Automotive Industry Forum” (AIF). We believe this delivers a clear message that this is about opening up communication channels through the whole industry and not just at dealer level. For more information email
register@autodata.ae.
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The Trend
This month we take a look at a popular premium brand model. The Audi A4 has been credited with having a reputation for exceptional build quality. The latest version of this was launched for 2010 model year and as can be seen the rate of depreciation is very slow. This is the result of the market demand and acceptance for the model. Another contributing factor is the fact that the brand has launched an approved used car scheme.
There is no doubt that these schemes help to strengthen residual values by driving consumer confidence higher. We expect to see more and more brands launching these schemes in an effort to improve the strength of their offering. |
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In Numbers
The lifecycle of a car is the number of years a model is in production before it is replaced by a newer version. In the last ten years the length of the lifecycle has shortened considerably. This is due to the modern computer driven design and test techniques available to the manufactures.
The effect this shortened lifecycle has on depreciation can be seen above. The existing model is 3 years into its lifecycle and the depreciation rate can be severe. The chart shows that at 1 year old the car is only worth 78% of its cost new. The new model at the same age is worth 95% of its cost new. Whilst the example above is a worst case scenario, the effect is the same across all high volume models.
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