Daimler: KSA market is one of the largest in region

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Mark De Haes, president and CEO at Daimler Middle East and Levant.

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GL Class made it year of the SUV in the region.

LONDON: Mercedes-Benz cars achieved a record year of sales in the Middle East in 2015, according to Mark De Haes, president and CEO of Daimler Middle East and Levant.
In an exclusive interview with Arab News, De Haes said that the Saudi market is one of the largest in the region for the company and that sales in that market have increased by 10 percent in 2015 compared to the previous year.
The company has six showrooms in the Kingdom including a new one in Abha.
During the first half of this year, the company is planning to launch the new C-Class Coupé, S-Class Cabriolet, and C-Class Cabriolet.
The CEO recognizes the increasing awareness in the region for sustainable cars and reveals that the company strategy is to present 10 plug-in hybrid cars by 2017.
These are highlights of the interview:

• Can you outline MB operations in the region in 2015 in terms of sales growth, best-selling models and dealers’ network expansion? And what is your strategy for 2016?
We have delivered more cars to customers in 2015 than ever before in one year.
We sold a total of nearly 1,872,000 vehicles (+13.4% higher than 2014) globally, posting our fifth record year in a row.
Our top selling models last year were the compact cars such as the A-Class, the CLA, and the GLA.
The Middle East is an extremely important market for us as a global car manufacturer and we are proud to say that we achieved consistent success through all channels of the business, with uninterrupted year on year growth.
We were fortunate to record another record year for the Middle East in 2015 compared to the previous year.
Last year, we developed and completed our model portfolio so today we have a model for every customer in every segment. 2015 was the year of the SUV for Mercedes-Benz and the demand this year continues.
The new models have had an excellent reception from customers: sales of the GLC, the updated GLE and the new addition to the SUV portfolio, the GLE Coupé were at record levels.
We are also expecting continued success for our Mercedes-Benz sedans and compact cars in 2016, especially as we are launching new models such as the new E-Class and C-Class Coupé.
Our growth in the Middle East will continue to set new benchmarks in every automotive respect.

• How do see the impact of decline in oil prices on the company’s sales target this year?
It is inevitable that macro-economic factors will have a certain impact on global businesses, but fortunately our sales have continued to grow and we have not been materially affected by global economic issues.

• How important is the Saudi market in the context of the regional markets? And what is best-selling MB vehicle there?
Saudi Arabia is one of the largest markets for us in the Middle East.
Our top selling models in the Middle East include the S-Class, E-Class, GLE (formerly called M-Class) and the C-Class.
It is also important to mention that we have seen substantial sales growth in our SUV and AMG models last year and we expect these sectors to continue growing over the next years.

• How did the company perform in the Saudi market this year compared to last year’s performance?
We are proud to say that our sales in Saudi Arabia have been increasing at a significant pace every year and consistently reaching new milestones. Our sales results increased by almost 10% in 2015 compared to the previous year.

• Do you see demand for hybrid and electric cars in the region and are there plans to introduce or expand these types in the region in the coming few years?
There is no doubt that sustainable cars are the future of the automotive industry.
As you know, some countries around the world have been promoting sustainable cars for many years, for both fuel efficiency and for environmental factors.
The awareness of sustainable cars is increasing in the Middle East, largely as a result of governmental focus and foresight.
Some markets in the region are seeing increasing sales of hybrid vehicles, particularly those in the Levant, and we expect this to gain momentum throughout the wider MENA region.
With the development of alternative drive systems, Daimler is the only car producer investing in all three technologies of hybrid drive, electric motors and fuel cells, with the goal of achieving emission-free mobility in the long term.
Early this year, Mercedes-Benz has laid out its plug-in hybrid model strategy, which includes the presentation of 10 new cars with this technology by 2017.
• How has the network of dealerships and service centers expanded in recent years to cope with increased sales? And what is the scope for expansion this year?
We currently have 42 outlets in the Middle East and Levant region, 21 of which are considered “3S” facilities offering Sales, Service and Spare Parts services in one location.
Our main focus this year is to take regional Mercedes-Benz outlets to the next level to further enhance our customer experience. Part of this is a distinctive new-look 3D-Black corporate identity, which will give our facilities an even more sophisticated and elegant look.
We are also delighted to introduce new retail formats to the region; in addition to the traditional retail points of sale in our showrooms, we will launch new mobile retail outlets to reach our customers in their local environments.
In the Kingdom we currently have six showrooms, located in Jeddah, Riyadh, Dammam and Abha, four of them offering Sales, Service and Spare Parts services in one location.
The recently inaugurated facility in Abha is the first in the region to showcase the latest corporate identity mentioned, as well as the new global architectural design introduced by Mercedes-Benz.
The showrooms have the capacity to display over 80 Mercedes-Benz vehicles of different models, with over 30 sales consultants serving our customers.
In addition, we have a fleet of over 110 demonstration vehicles available for our potential customers to test drive, which shows the considerable size of our operation.

• Are you planning to introduce new models in the region this year and what is their timetable?
This is another dynamic year for Mercedes-Benz with a number of new car launches scheduled.
These include the introduction of the new C-Class Coupé, S-Class Cabriolet, and C-Class Cabriolet during the first half of 2016.
Later in the year, we will continue with the same pace introducing new models to our existing vehicle portfolio.

• What programs, if any, does the company have for training of GCC national?
Mercedes-Benz runs a comprehensive training program for all Mercedes-Benz staff in this region, with official Training Certification Programs for managers, sales consultants, service advisers, technicians and more.
Each course is adapted to the GCC region and delivered by experienced Mercedes-Benz trainers. Before we launch a new product these trainers also train our technicians and sales staff on the latest features and new technology to ensure that customers in the GCC receive the latest information from highly qualified staff.

• What do MB vehicles offer to the consumer that other companies don’t?
Mercedes-Benz is an emotional brand and in this region, in particular, customers in this region are very innovation-driven with a strong appetite for customization and individuality which we offer.
The words “a Mercedes-Benz should always look like a Mercedes-Benz” still fuel our creative fire.
But what we achieve goes far beyond appearances.
Together with some of the world’s best automotive engineers, our team of industrial, textile, graphic and interface designers devote themselves to the craft of automobile making. And what we produce are vehicles that not only look, but feel, sound and perform like nothing else on the road.