Despite stricter auto financing regulations, car sales in Qatar are expected to grow 20 percent this year compared with 2012 with sales volumes touching nearly 100,000, says an industry expert.
“According to the Middle East Automobile Council (MEAC) estimates, in 2012, over 80,000 new vehicles were sold, and this year Qatar’s auto sector is forecast to sell up to 95,000 units, despite Qatar Central Bank’s (QCB) stringent auto financing policies,” said Mohamed El Talkhawi, General Manager of Sales and Marketing at Q-Auto, the new dealer of Audi products in Qatar.
El Talkhawi rued that rules for auto financing are “not practical” because QCB has too much control on banks with regard to car loans about “who does what with whom”.
“I believe it should be the liberty of individual customer whichever bank he/she wants to opt to finance a car regardless of the fact whether they bank with it or not,” he added.
“Having an account with a particular bank should not be obligatory to finance a car from the same bank.”
According to the existing credit lending policy, an individual must have his salary account with the bank to obtain loans.
He said that this is something like denying a customer the opportunity to explore what rate of interests and other value-added services other banks are offering. It does not promote healthy competition.
“So long as the needful protection and credit risks are properly measured, stricter regulations hamper growth prospects.”
Asked about the monopoly of car dealers and higher prices in Qatar, El Talkhawi, said: “Compared with the UAE and Saudi markets, from the sales perspective, the Qatari market is relatively very small and still underdeveloped, given that, it does not support most of the growth strategies.
“Besides, higher fixed expenses (capital expenditure) and low sale volumes, car dealers are compelled to ask for marginally higher prices.”
Aiming to enhance its market share, Q-Auto is working aggressively and is set to introduce a host of value-added after-sale services for customer satisfaction.
El Talkhawi hinted that the top management of the company is considering extending the ongoing sales promotion until August 31.
“We are mainly focusing on improving our service facilities which are under construction. Q-Auto is developing a state-of-the-art after-sale service workshop in Industrial Area and will introduce many innovative services,” he said.
“Under its ‘quick service facilities’, Audi customers would be able to drop off their cars to get services done from two major locations that would be very accessible.
“We are also in the process of having two mobile service trucks imported from Germany.
“These service vehicles would be fully equipped with oil tanks, compressors and other computerised facilities that will be able to diagnose and handle minor problems such as tyre-rotation, fixing brakes, oil change and many others, at the customer’ door step or workplace, without having them going to our service facilities,” he said.
To avoid traffic-related problems, soon it will introduce ‘nigh-shift drop-off services’ where a customer will just need to drop keys and information in a sealed envelope.
“We are set to open a new showroom in September in Doha, and another world-class showroom at Salwa Road by the year-end to serve better,” El Talkhawi said.
