Autodata Middle East Market Report January 2012.

January 2012 Edition

Automotive' industries growth to continue in 2012

Dear Reader,

First of all the Autodata team would like to wish you a happy and prosperous 2012.
2011 was a successful year for the Industry. Also Autodata Middle East had a successful year introducing 7 new Automotive applications. It enabled Autodata to develop partnerships with many Manufacturers, Car Dealers, Insurers, Banks and The Government.
For 2012 Autodata continues to support your company by introducing Unified Contracts in ACMS, Future Residual Value System and Market Data.

We are looking forward to meet you personally in the year ahead.

Pascal Persoon
General Manager

The end result of 2011 turned out to be much better than anybody could have imagined. The year started with the market buoyant and most predicting a record breaking year for new car sales.

Nobody could have predicted what was to follow. The disaster in Japan created chaos across the automotive world. This was then followed by the changes in finance regulations and the year ended with another disaster, this time in Thailand.

In spite of all this the industry has ended up having a record year.
I believe we will have broken the 210,000 mark for new car sales when the final figures are released later this month.

There can be few who would have thought this possible a few months back.

Me included! Looking forward this year I would predict the growth to continue.

We all know that the appetite for approved used car schemes will continue. The knock on effect will be to stabilise and strengthen residual values.

The one point we would recommend is to concentrate on improving the customer experience as this will lead to higher retention and better returns on investment.

Bill Carter
Head of Valuations
Autodata Middle East
Email: bcarter@autodata.ae

Automotive Industry Forum The Automotive Industry Forum (AIF) moves into the new year and will continue building bridges within the region’s automotive industry. Last year’s success resulted in a growing membership and with that a new venue to have the monthly breakfast meeting. The AIF can be attended upon invitation only. During interactive sessions and exchanging knowledge, the Automotive Industry Forum aim is to help the market mature more quickly. If you are a senior manager, new or pre-owned sales manager and are not yet represented, you can apply by sending an email to register@aif.ae. For more information on the Forum Please visit www.aif.ae.

The Trend
The recent launch of the new Mini Cooper has kept the brand in the limelight. The Mini brand has been well received in this region ever since it was first introduced. The above current market values for used examples of the Mini Cooper display that the depreciation is not as drastic as some brands.

There is a problem with models that fall outside the network depressing values but this can be controlled. There is no doubt that the brand is building on its continuing success by steadily introducing new versions to the range. It will be interesting to see which direction they move towards next.

In Numbers
The benefits of an approved used car program are often over looked when analysing residual values.
The chart above displays the depreciation curves of two very similar models from different manufacturers. Model A has the benefit of being sold through a manufacturers approved used car scheme.
In the case of Model B the dealer has no interest in used cars and so the vehicle bleeds out of the network and the value drops! As the manufacturers wake up to amount of damage being done to their brand they will be only too eager to join the growing number of certified/ approved used car schemes.

Our mailing address is:
Jumeirah Lake Towers
P.O. Box 502768
Dubai, United Arab Emirates
marketreport@autodata.ae
www.autodata.ae