Naghi BMW director: ‘Saudi Vision 2030 offers road map to transform Saudi economy’
THE Saudi royal decree allowing women to drive in the Kingdom is timely, brave and wise. A surge of sales and activity in the Saudi market is expected by world automakers between now and June 2018 when Saudi women will be allowed to hold driving licenses.
Women are acknowledged as safer drivers by insurance companies, and that is backed up by statistics. The Saudi interior minister tweeted that women drivers would transform traffic safety and in doing so would reduce deaths on the road as well as economic losses resulting from accidents.
Major world media outlets such as Fortune, Forbes and The Washington Post hailed the move as a giant step forward toward economic growth and social transformation, commenting that this was a leap ahead toward implementing Vision 2030.
There are a multitude of implications: The Saudi car market has potential to almost double in size; the need for foreign drivers will be drastically reduced; women will have enhanced chances to work outside the home and take part in more economic activities; and personal welfare and disposable family income will rise.
Already Princess Nourah University, which has 60,000 female students in Riyadh and other cities, is preparing to set up a driving school for women.
Merrill Lynch estimates that the royal decree will put 9 million potential new drivers on the roads, including 2.7 million resident non-Saudi women. Car sales in Saudi Arabia are expected to grow by 15-20 percent annually according to LMC Automotive consultants. That growth would include all segments of the car market, not only the luxury and premium brands.
Within a week of the announcement automakers put out adverts congratulating Saudi women and welcoming them to the driving seat. Companies have long known how Saudi women have a great influence on the car-buying decision even before the royal decree was issued. From now on they will pay more attention to what these women need in a family car and give them equal attention. There is a huge potential for those companies to gain.
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Adel Murad is a senior motoring and business journalist, based in London.
QIn an interview with Arab News, Muirhead confirmed that the company has increased BMW and MINI sales in the Kingdom during the first quarter of this year by 30 percent.
He revealed that he sees Vision 2030 as a roadmap for transforming the country’s economy.
In a wide-ranging interview, the Briton revealed that the Saudi market will see the launch of new models this year including the 6 Series Gran Turismo which made its public debut at Frankfurt’s International Motor Show (IAA) in last month. This will be followed by the new X3 later in the year.
Mohamed Yousuf Naghi
Motors — BMW Group (Naghi BMW) has undertaken a series of initiatives to provide employment opportunities to Saudi citizens and to secure long-term financial security, according to Donn Muirhead, managing director of Naghi BMW.
Here’s what he had to tell Arab News.
How did BMW do in the Kingdom in the first quarter of this year compared to first quarter of 2016 and which model has been the best seller?
We have increased BMW and MINI sales by 30 percent in the first quarter compared to the same period in 2016 thanks to our top-selling BMW 7 Series. The BMW 7 Series continues to be the favorite of many of our customers including government sectors and commercial entities.
Are there any implications for the car industry in Saudi Arabia and specifically for BMW from the announced strategy of Vision 2030?
The Saudi Vision 2030 provides the ideal roadmap for transforming the Saudi economy. The Saudi automotive industry plays a huge role in the vision, as it caters to the largest market in the GCC.
Living up to Vision 2030, Naghi BMW has undertaken a series of initiatives and measures to improve the business environment to ensure economic growth, to provide employment opportunities to citizens and to secure long-term financial security. These include empowering Saudi youth, continuous investment in infrastructure and new technologies and a pledge of delivering a high level of customer service.
While most companies are racing to produce electric and plug-in hybrids, how do you see that segment developing in Saudi Arabia from brands such as BMW?
Electric and hybrid vehicles are gaining more exposure in the region and are steadily increasing due to evolution of technology, consumer needs and oil instability. BMW pioneers in this sector with the BMW i8 locally and globally and we believe this segment is expanding.
BMW has already made strong developments in the electric and plug-in hybrid cars segment with the BMWi being a BMW Group brand focused on connected mobility services, visionary vehicle concepts
and a new understanding of premium strongly defined by sustainability.
What new models will you have introduced to the Saudi Arabian market during 2017?
Naghi Motors — BMW Group has launched the BMW 5 Series in March 2017. The seventh generation of the BMW 5 Series Sedan cuts a sporty, elegant and stylish figure with further enhanced dynamics and an unbeatable line-up of assistance systems. In addition, we welcomed the BMW M760Li xDrive. The 12-cylinder petrol engine with M Performance TwinPower Turbo technology under the bonnet reinforces the new car’s range-topping status. We are looking forward to the launch of the BMW 6 Series Gran Turismo which made its public debut at Frankfurt’s International Motor Show (IAA) last month. The market launch will then get underway in November. Later this year will also see the launch of the BMW X3.
How do you see the market in Saudi Arabia performing this year compared to last year, in view of volatility of oil prices?
2017 has been characterized by fluctuation and the automotive market has been influenced as well. The total automotive industry in the Kingdom showed a decrease in sales of around 15 percent [reaching 30 percent] for the premium brands, such as BMW. In Naghi BMW, the strong team spirit, the dedication to our values and most of all our customer-centric philosophy has proved an additional asset that contributed significantly to the dominance of the 7 Series in its segment and a market share of 75.5 percent.
What after-sale services are you offering the Saudi consumer? And how widespread are BMW’s service and spare parts points in the Kingdom?
Naghi Motors — BMW Group is continuously expanding its after-sales services in all areas to maintain mechanism and body work. Services included are for brakes, oil, exhaust, mechanical repairs. Including minor to complete engine rebuild, and body work that begins from minor scratch to complete accident rebuild. Naghi BMW is constantly growing its network of new and used cars and after-sales showrooms as well as fast-lane service centres in key areas across the Kingdom, including the holy cities of Makkah and Madinah.
Service centers and spare parts stretch across the Kingdom with centres in Jeddah, Riyadh, Alkhobar, Makkah, Madinah and Al-Qassim.
How long does it take to get delivery of a BMW car with individual options after an order from Saudi Arabia?
BMW group follow a set of standards and procedures to ensure customers receive their favorite car with their choice of options. This process takes around five months — the same applies to any individual delivery worldwide.
What is BMW’s share of the local premium-car market? And who are your main competitors?
Our main competitors in the market are Mercedes and Audi. We have a market share of 22.5 percent.