The Russian company Fresh Auto plans to invest in the development of the dealership business in the UAE, so far we are talking only about used cars. This was told to socialbites.ca by Denis Migal, General Manager of the Fresh Auto dealership network. The interlocutor noted that the company considers the emirates not only as a platform for bringing cars to Russia, but also as a separate local business.
“We will be in the foreign market and build according to the situation. If it is necessary to deliver something to Russia, we will, why not. However, initially a local company was created not for this, but to work inside, – said Denis Migal. –
Why the UAE market is convenient – in 65% of the countries of the planet you can trade cars in both directions (import and export – socialbites.ca):
not only to Russia, but also to Africa, India, Indonesia and other countries. And in the UAE you can import cars from Japan, America and Europe, so it’s very convenient.”
According to the head of Fresh Auto, the company considers the branch in the UAE to be the only international hub of the company that will enable its customers to purchase a wide range of automotive products.
The situation with the availability of cars on free sale in Russia worsened after the events in Ukraine – the main players in the Russian car market stopped the production and supply of their products to the territory of the Russian Federation.
As a result, the shortage of vehicles caused by the lack of chips was further complicated by freezes in supply.
This led to a sharp increase in the prices of both new cars and used cars. Although, against the background of the strengthening of the ruble in June, there is a 25% decrease in prices for used cars according to the Drom.ru classification.
But Gazeta.ru sources say that for some foreign brands, stockpiling will take 2-3 months. Ru” in large Moscow dealer holdings. We are talking specifically about mass models of Kia, Hyundai, Renault and Volkswagen.
Despite the legalization of parallel imports, not all dealers are in a hurry to diversify their business, following the example of Fresh Auto. Therefore, Avilon automobile group, one of the market leaders, continues to actively cooperate with the representations of foreign automobile companies at this stage to keep up with the latest changes, including the timing and volume of automobile shipments. the general manager told socialbites.ca Oleg Shamba, Director of Business Development of Avilon AG.
The group does not plan to enter new markets.
“The situation is still unstable, so it’s too early to talk about any changes in the business.
Regarding the predictions regarding the dynamics of the automobile market, we can say the following: As long as everything remains as it is now, the market will continue to decline in the coming months,
– said the addressee of the broadcast.
According to him, car shipments and the work of local industries are still at a standstill and the industry is running a significant deficit. Shamba noted that there are no factors that would improve the situation in the country’s automobile business.
The idea of an international hub Fresh Auto welcomes Sergei Burgazliev, an independent consultant in the automotive industry. he is sure
Presence of stocks in a neutral country according to Russia will allow the company to quickly replenish warehouse stocks in the domestic market.
The specialist is confident that such a branch will make it easier for the dealer to purchase, select, legalize and logistics when sending cars to the Russian Federation. However, the automotive industry consultant is skeptical of the full-fledged business of a domestic company with the aim of selling cars in the emirate market.
“I see that the local market has long established its own Arab auto retail network. It is unlikely that Russian dealers will bring some of their unique competitive capabilities to the UAE. But as a resource to replenish the Russian warehouse with goods, this is a great idea, ”says Burgazliev.