Automotive industry at a crossroad

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Sunaina Rana / Emirates Business

Arabian Automobiles Company (AAC), the flagship company of AW Rostamani Group is one of the leading automotive dealers in the GCC and also exclusive distributor for Infiniti in Dubai and Northern Emirates.
The brand is also the middle of a major product offensive. It has been widely acclaimed for its iconic design and innovative driver-assistance technologies.
Emirates Busisness talks to Hussam Baghdadi, Sales General Manager at Infiniti of Arabian Automobiles about, the brands growth in the region.

UAE was considered as the fastest-growing car market in the world in 2015 and there has been a rapid growth in the automobile industry. Can you share your opinion on the same?
We are pleased to say that Infiniti is the fastest luxury growing brand in the region.
The response that we have been receiving from our consumers is very delightful. We foresee a 5% growth within the Luxury total industry volume in the industry this 2016.

What is your opinion about the revolutionary digital transformation of the industry?
The customer expectations have expanded tremendously over the years. Nowadays customers are more empowered in many different fields and they are using
social networks to get hold of many different sources such as looking for career opportunities, travel bookings, restaurants, friends and of course to purchase a vehicle.
The automotive industry is at a crossroad where the vehicle itself and the consumer’s experience with it are rapidly shifting from the physical to digital. At Infiniti of Arabian Automobiles, we have launched the first Luxury 360 degree Virtual Showroom.
The Virtual Showroom brings the premium Infiniti Centre experience, offering customers unprecedented ease of access, convenience and comfort as they browse the array of award-winning Infiniti vehicles.
The unparalleled level of interaction it provides has been designed to set new standards for the showroom experience and to reaffirm Arabian Automobiles Company’s commitment to deliver the ultimate in customer experience. We also offer our consumers with the MyInfiniti App which allows our customers to book services online and have access to the latest news and events at Infiniti.
Furthermore, we understand the importance of social media and we are more than ever interacting with consumers on platforms such as Facebook which has yield great results in terms of converting leads into actual vehicle sales.

What are the different
segments of vehicles you offer to your customers? Do you believe in aggressive marketing campaigns?
We are present in the main segments within the Luxury sector. These are the D-LUX SUV, D-Lux Convertible, D-LUX Sedan, E-Lux Sedan, E-LUX SUV, F-LUX SUV.
We believe in aggressive yet adequate marketing campaigns. Each of our models suit a different target audience. We strive to develop marketing campaigns that will appeal to each of these target customers.

Do these aggressive marketing campaigns increase the percentage of sales? Upto what extent?
Indeed aggressive marketing campaigns such as our Upgrade to Infiniti trade in campaign would increase our showroom traffic along with the sales conversion by 15 percent.

In your opinion, what is the main strategy leading to success? What are the prospects of growth in the region?
The main strategy leading to success is a solid corporate culture with defined key measurements. At Arabian Automobiles, we follow the Balance Score Card originated by Dr. Robert Kaplan and David Norton. There is great growth potential in the region especially with the Expo2020 along with the development of Dubai Plan 2021to reinforce Dubai’s positioning as a global center and destination across a number of fields. This creates opportunities for business as well as individuals to live and work in Dubai which creates great opportunities for carmakers.

Retail sales in this segment also increased substantially. What was the recorded growth in the previous year?
In 2015, PTIV (Premium Total Industry Volume) growth was 8.9 percent placing the UAE as the fastest growing segment within all GCC countries. We have just launched the New Infiniti QX60 and Infiniti QX50 which were major facelifts. We are planning to launch the Infiniti Q30 within the next few months along with the Infiniti Q50 3.0 Turbo with 400HP and 300HP

What kind of numbers are you expecting to hit the board by the end of this financial year?
We are planning to increase our sales by 5 percent this year versus last year.

Any new project or venture on the cards?
We are launching two new fully fledged Infiniti Centers. One in Fujairah which will open its doors in June 2016 and another Infiniti Center in Sharjah which will open by September 2016.
We are also opening the first Infiniti Certified Pre Owned Center in the world right next to the iconic Infiniti Center on Sheikh Zayed Road which is a prime location for us hence creates great opportunities for both our New Car Sales and Used Car Sales.

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