BMW: New car sales in KSA to reach 1 million by 2018

OERG Breuer has been managing director of the BMW Group Middle East since 2011.
During his tenure, the company has achieved rapid growth in all segments and capitalized on significant developments in the region, especially in Saudi Arabia.
The Saudi market has the largest BMW service center in the world at an investment cost of SR300 million. In this interview with Arab News, Breuer emphasized the importance of the Saudi market and highlighted a National Commercial Bank report forecasting new car sales in the Kingdom to reach one million cars by 2018.
Prior to coming to the Middle East Breuer took over many managerial positions within the BMW group both in Germany and in many Asian markets including Malaysia, Singapore, the Philippines and Thailand.
Breuer is scheduled to return to the German market in February and will be replaced by a new managing director, Johannes Seibert.
These are the highlights of the interview with Dr. Breuer:
Can you comment on BMW efforts in improving customer service and dealership facilities in Saudi Arabia?
We have a long and successful relationship with our strong importer Mohamed Yousuf Naghi Motors in Saudi Arabia, who is consistently investing in our BMW Group brands to cater for their growth as well as improve customer service. Currently, Mohamed Yousuf Naghi Motors has showrooms and service centers in Jeddah, Riyadh and Alkhobar, as well as the holy cities of Makkah and Madinah.
In addition, they have the world’s biggest BMW Group service center in Jeddah, which is a result of a an SR300 million investment in expanding their business operations.
Today BMW Group is the only premium brand that offers five years maintenance and warranty with many models of our cars within the purchase price. And for the models that are not included, the client can purchase any program that fits his budget and needs at a very competitive price. This guarantees that his BMW will always be serviced with the best quality original parts and be serviced by BMW certified technicians.
What are the importance and potential of the Saudi market for BMW?
Under strong leadership, the Kingdom’s economy continues to grow and as such, its automotive market is one of the fastest growing in the world and therefore hugely important to the BMW Group. Recent reports are optimistic about the continued growth of the Saudi economy as well as the automotive market, which rose by 18 percent in 2012.
A recently published National Commercial Bank report also forecast that new-car sales in Saudi Arabia are projected to cross one million units in 2018 in view of rapid trade and economic expansion in the Kingdom. This is coupled with a fast-growing population and rising income per capita, forecasted to reach 31 million people and SR87,000 respectively by 2015.
The great economic development, which is a result of the wise financial policies implemented in Saudi Arabia in the recent years, is continuous. This means prosperity for an ever growing population. As the population prospers it has the ability to purchase premium cars which offer quality and even more important safety to drivers and their families. BMW Group Middle East wants to be the No 1 brand of choice for premium cars and quality service in Saudi Arabia.
How did BMW perform in the Saudi Market in 2013 and what are the prospects for 2014?
Mohamed Yousuf Naghi Motors increased sales by 17 percent for the first eleven months of 2013. It was also the second biggest market in the Middle East after the UAE in terms of the number of vehicles sold, clearly demonstrating Saudi customers’ desire and appreciation for high performance luxury cars as well as the strength of the brand in the Kingdom.

The top-selling BMW was the flagship 7 Series, with 1,508 cars sold a reported 7 percent increase in sales over the same period last year. The BMW 7 Series continues to garner popularity with the affluent Saudi consumers in addition to the government sector and large commercial entities who want the best in premium luxury motoring.
The excellent results achieved by Mohamed Yousuf Naghi Motors during the first eleven months of this year helped contribute significantly to the BMW Group’s impressive sales in the Middle East, which in turn helped fuel our growth globally. We are confident that the Kingdom as a market will continue to experience exponential growth in 2014.
We have a host of new and exciting models lined up for the region as a whole and we are confident that these vehicles will cater to the need of the discerning Saudi Arabian customer who constantly seeks out the best in premium motoring.
When was the last time Joerg Breuer visited the Saudi market? and what did you achieve during that visit?
The last time was in September last year along with Dr. Ian Robertson, member of the board of Management BMW AG, Sales and Marketing BMW. The primary purpose of the visit was to reiterate our support for Saudi Arabia and to thank our BMW Group importer Mohamed Yousuf Naghi Motors for its remarkable performance and unwavering commitment to the BMW brand in the Kingdom.