Confidence returning in the region's battered car market

While those launching new cars talked up their green credentials, there was equally no shortage of raw power on show. But overshadowing those elements was that of realism, as an industry licking the wounds from tough times was at pains to show that it had learnt from past excesses and mistakes, and was far more focused now on the needs of the customer.

For Middle East dealers, the outlook for 2010 is a little clearer than 2009 and they have the comfort of knowing that for many manufacturers, the Middle East is one of their most important growth markets. But while sales are picking up, firm forecasting for future quarters was muted. Hope was evident though, and it was clear that they believe this year was about as tough as it will ever get.

GM profiles new launches

The highest profile casualty this year in the automotive world has been GM, and as it showed three new cars and the concept Stingray, Middle East President Mike Devero, emphasized that the manufacturer is now a 'new company' that is 'leaner and better able to compete'. In the Middle East, he said GM's focus was on satisfying customers and building its remaining brands - Chevrolet, GMC and Cadillac.

Unsurprisingly, he described 2009 as an 'extremely challenging year'. 'We have all had to adjust to the times here in the region,' he said. Tough times though present opportunities and the company is on-track to meet its 2009 sales targets, he added.

Its new cars were the Cadillac CTS Coupe, due for a worldwide sales launch in summer 2010, the 2011 Spark - a car very firmly aimed at the youth market and with an emphasis around fun, and the Volt, its 'extended range' electric car. However, while the Volt is set for a late 2010 release, no decision has been taken on if it will be sold in this region, in part due to the weather conditions.

Bullish forward outlook

While GM did humble, Mercedes-Benz was in bullish mood. Its two new cars included a Middle East only G55, called Edition 79 and the gull-winged SLS AMG supercar. The G55 is a limited production run of 79, in reference, like its name, to 1979, the year the car was first made and all models have already been sold. The SLS AMG will arrive early next year, with a price tag that puts it very firmly in the luxury market.

Mercedes-Benz said it was seeing a turnaround in market conditions, and would come close to 2008 sales levels for this year. Month-on-month, Frank Bernthaler, director of sales and marketing for Mercedes-Benz Middle East sales are up.

'Stock levels are down, and we are understocked compared to one year ago. Order intake is up and cancellations are down. We're much more optimistic for Q1 2010, but who knows what's going to happen after that,' he told AMEinfo.com.

Renault pushed the value for money and green themes, as it launched three cars for 2010. The company's GCC Managing Director Mohamed Bennani said the manufacturer was on schedule to meet its 2007 plan of launching 10 cars in three years. 'I'm optimistic about regional auto sales picking up in the months to come,' he added. While the Sandero and Megane Hatchback were launched at the show (with Q1 2010 release dates), the biggest push was saved for the Fluence, making its world debut.

Built in Korea by Renault Samsung Motors, Bennani said the Fluence was designed with the region in mind, and will be available from the middle of next year.

Elsewhere at the at the show, Nissan launched the GT-R SpecV, available from February, Mazda its 2010 CX9 SUV, Peugeot the 308CC and RCZ and Hyundai the Centennial, aimed at the luxury sector, the Tucson and Sonata.

Overall, there was a growing air of confidence among car manufacturers at the Dubai International Motor Show that the worst of the crisis that hit them so hard is past. While 2010 is still a great unknown, there was belief that with the month-on-month growth they have been seeing in the latter part of the year, they are entering 2010 on firmer footing and that next year could at least provide some stability in the market.