Nissan ME shrugs off rumours of 50% drop in car prices

PRICES STABLE: The car industry is not expected to cut prices this year, according to Nissan Middle East. (Getty Images)

Nissan Middle East has shrugged off rumours that car prices will fall this year pointing out that the high appreciation of the Japanese yen made such a move unfeasible, it said on Sunday.
 
The company was responding to comments made by GCC bloggers that suggested prices for all car bands could fall by between 40 and 50 percent during the next three months as a result of the global economic downturn.
 
During a recent visit to the GCC by Nissan’s president and CEO, Carlos Ghosn, it was confirmed that a short-term slowdown in GCC sales was expected, but overall the company was optimistic about the growth potential in the Middle East.

"Talk of car prices dropping dramatically over next three or four months are not true. The high appreciation of the Japanese yen is one factor that makes such price drop speculation unfeasible and unrealistic", said Monal Zeidan, general manager, marketing and corporate communications at Nissan Middle East.

"Some in the car trade may use promotions and marketing campaigns but Middle East automotive experts agree no dramatic drop in car prices will follow as speculated by those citing local rumours," added Zeidan.

The global financial crisis had had a negative impact on the automotive industry in mature markets but the Middle East’s car market might slow down but would not shrink negatively, he said.

Experts estimate nearly one million local people are employed in automotive related sectors in the Arab world.

Nissan Middle East witnessed 34 percent growth with 183,000 units sold in 2007 versus 2006. The current fiscal year ends in March 2009.

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READERS' COMMENTS

Discounting on cars
Posted by paul, Dubai, United Arab Emirates on Sunday 4 October 2009 at 09:02 UAE time


You would be very wise to shop around if you are planning on buying a new car. All main dealers have stock available some even have cars from 2007 which they will be desperate to move to cut their losses.
But remember if you buy a 2007 model for a knock down price ; what you gain at the front end you will loose at the back end when you come to sell it. You will buy a car with 50% off the original 2007 prices if you push hard enough.

Still Waiting for the Discount War!
Posted by Peter Williams on Saturday 3 October 2009 at 19:09 UAE time


To update on a comment by 'Paul' in Dubai in the February edition claiming car prices will fall 50% in six months. It's now over six months and this is what has panned out contrary to Paul's predictions. * There is no 50% discount on Nissan cars * Nissan has not lost market share * There no "Open Discount War" * The Yen continues to appreciate proving Mr Zeidan very right

Not just CAR Industry.
Posted by Anwar Karakulangara, Dubai, UAE on Monday 2 February 2009 at 17:52 UAE time


Why NOT Car Industry? Cars are made out of steel, and we all know that STEEL Price has been down more than 50% in last 6 month alone! The construction industry is benifiting 30-40% cost fall compared to Jan 08 figures. These are strong indications of coming price drop in related industries, not JUST CAR, but across the boarder.

Rgds, Anwar

Waiting for the discount war
Posted by paul, Dubai, United Arab Emirates on Monday 2 February 2009 at 09:08 UAE time


One can help but wonder what Mr. Zeidan will say when Nissan start to loose market share. Some of the major manufactures have already broken ranks and started to offer discounts, free servicing and even extended warranties but are being claver by not advertising the offers and only offering to customers inside the showroom. Give it 6 months and then we will have an open discount war as dealers fight for market share.

PAP

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