CHINESE CAR BRAND HAVAL SETS SIGHTS ON 4X4 DEMAND IN UAE
▶ In China, Great Wall sells 100,000 units a month of the marque’s new H6 model, which is now available to UAE motorists
The UAE is vital for Chinese car brand Haval, which aims to double its sales in the country by capitalising on demand for 4x4s.
The company is pinning its hopes on the H6 sports utility vehicle, which was unveiled in Dubai on Thursday by Swaidan Trading, the automotive division of Al Naboodah Group Enterprises. One of the UAE’s oldest family conglomerates, Swaidan Trading has six showrooms spread across Dubai, Abu Dhabi and the Northern Emirates.
Made by Chinese manufacturer Great Wall Motors, the H6, priced from Dh69,900 to Dh79,900, is crucial for the Haval marque in the Emirates. “H6 is going to be the lifeline of our brand in the UAE. In late 2016, Haval’s sales [were] on a small scale as we had brought only a limited number of vehicles because we first wanted to test the market,” Greg Cottrell, general manager of the automotive divisio at Swaidan Trading, told The National.
“Now we are seriously looking forward to expanding our market share with this new launch. H6 is apt to disrupt the market and give tough competition to other SUVs.”
Chinese brands in the UAE are fast closing the gap on Japanese and European rivals, according to Alpen Capital, with lower pricing and maintenance costs. Chinese vehicle sales in the Emirates are forecast to rise by 100 per cent annually to capture a double-digit market share by 2020, Alpen said.
The UAE and wider Arabian Gulf market is an increasingly competitive arena for off-road vehicle makers, made even more so by the arrival of high-end brands in the segment. Rolls-Royce’s much-awaited 4x4, the Cullinan, which was launched in May this year, has attracted strong demand in the region, according to the luxury car brand.
“Response from our customers and prospects, the media and fans of the brand worldwide has been overwhelmingly positive,’ Rami Joudi, regional PR and communications manager of Rolls-Royce Motor Cars MEA and India, said last month. “The order books for Cullinan are also exceptionally strong and already stretch well into 2019,” he said, according to UAE Business Review.
Lamborghini, and Bentley, meanwhile, have also entered the off-road market. The Italian car maker launched the Urus in December, while the British brand’s Bentayga started production in early 2016.
Al Naboodah Group Enterprises first started selling Great Wall vehicles in the UAE in 2001. Great Wall was among the first of the Chinese car makers to enter a market dominated by European, American and Japanese brands. In 2013 Great Wall started marketing Haval vehicles under that name and as such Haval, which only offers 4x4s, entered the UAE market in late 2016.
Great Wall’s global revenue rose 17 per cent in the first six months of this year, although this was from a low base last year. However, Bloomberg forecasts its shipments could decline over the rest of 2018 as the H6 loses buyers to an increasing number of competitors.
“The UAE automotive market is reducing. It is around 20 per cent down year-over-year this year. So one of the drivers to go forward is SUVs,” said Mr Cottrell, who declined to share Haval’s sales and revenue figures for the country.
Still, he said more new H6s have been ordered for the UAE “as we are expecting high-volume sales. Interest of buyers is building up very fast and we ordered what we believe is enough for at least the next four-month supply”.
In its home country, the H6 makes up a large part of Haval’s overall sales and its franchise owners in the UAE hope to replicate this success.
“In China, Haval is one of the most expensive brands but still they are selling over 100,000 units a month and H6 constitutes nearly 40 per cent of the sales,” said Mr Cottrell.
However, he said China was a different market to the UAE.
“In China, there is a lot more competition for Haval because there are many [Chinese] manufacturers. But in the UAE, we don’t have much competition from Chinese producers.”
Electric vehicles are also part of Haval’s expansion plans in the UAE. “In China, we already have electric versions of Haval and by 2020 we are expecting to see similar models coming to this country,” said Mr Cottrell.