DOHA: Sales of new models of cars launched for 2012-13 have declined by 10-15 percent compared to the corresponding period last year. Car dealers and showroom managers expect the situation to continue for the next year due to European financial crisis and global economic uncertainties.
Ali Al Safran, Manager at ‘Orange’ car showroom, told Al Arab: “The launch of new models of cars by different automobile manufacturers has attracted a very lukewarm response due to various factors.”
“In addition to global financial crisis, customers are reluctant to buy new cars due to high prices, and also, some are waiting for the launch of new models by other companies so that they can choose the best model”, he added.
Referring to the latest data available, he further added that most of the European car companies are already suffering from a decline in sales, and the sector is about to enter into a recession.
At the time of dwindling European car market when sales figures are continuously shrinking across the globe, French automobile manufacturers such as Peugeot and Citroën have reported surplus production. These companies are also facing pressure in the form of stiff competition from the South Korean companies such as Hyundai and Kia Motors who are well known for manufacturing budget-cars.
Abdullah Al Shangal, sales manager at Deyaar Al Izz showroom, sounding similar apprehensions, said:
“We have witnessed a noticeable decline in the sales of 2013 Model of cars this year which is estimated to be 10-15 percent. And we expect similar trends in the near future due to the lingering global uncertainties prevailing in the market.”
However, the demand for luxury cars, whose price exceeds QR1.5m, is witnessing a positive trend. For instance, demand for Rolls-Royce cars that have proved their worth in the Qatari market, witnessing a rising demand by wealthy customers.
“The growth prospects for the luxury car market are positive for the next two years. Thanks to the promising economy of Qatar. This has become possible as a result of the approval of increased salaries for the public sector employees by the Government, combined with the lower rate of interest by the banks”, Joseph Taiyar, Manager at a Rolls-Royce showroom was quoted as saying by the daily.
The Peninsula
