Mercedes Benz expects sales to grow as oil prices fall
German automaker sees no change in vehicle prices even as the euro depreciates
Mercedes-Benz said it was expecting to see continued growth in sales despite falling oil prices and the resulting drop in consumer spending.
The increased demand is projected despite the company saying it would not cut down prices as the euro depreciates in value.
“Since oil prices started to fall, we’ve posted continuous record growth on a monthto-month basis, so I’m not too worried about that,” said Dirk Fetzer, director of sales and marketing at Daimler Middle East and Levant, the German automobile company’s parent.
Fetzer was speaking on the sidelines of a press conference yesterday to announce the launch of the Mercedes-Benz GLA in Abu Dhabi.
Also speaking at the event was Kamal Rafih, general manager of Emirates Motor Company (EMC), Mercedes’ distributor in the emirate, saying that EMC recorded a 22 per cent increase in sales in 2014 compared to the previous year. “EMC has not been affected by the euro because we’re pegged against the dollar anyway. We didn’t raise our prices when the value of the euro went up, so we aren’t going to cut prices as it depreciates,” Rafih said.
Special features
The new GLA car has a starting price of Dh169,000, and Mercedes said that early indication has shown interest and demand.
“We’ve already launched in Europe and the United States, but we have some special features for the Middle East, so we’ve had time to see performance in Europe and the car is as successful as the A class. In a market like [Abu Dhabi] where vehicles are very well received, I think we have to avoid being sold out,” Mercedes’ Fetzer said.
The UAE alone accounts for half of the volume of Mercedes Benz cars sold in the region, with the brand said to be witnessing growing sales in the Middle East and Levant over the past few years.