The Automotive Association Middle East & North Africa (AMENA)

MENA AUTOMOTIVE SPOTLIGHT

Dissecting the automotive industry across the Middle East and Northern Africa, as it seeks to recover from the pitfalls of the COVID-19 pandemic and is fuelled by investment and innovation

Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin

Agrowing industry composed of a network of manufacturers, importers, suppliers, professionals and consumers; MENA’s auto industry is in transition. At present, the sector is defined by the tailwinds of a movement towards Autonomous, Connected, Electric and Shared Mobility vehicles (ACES), as the market continues to redefine itself in times of transition.

Accompanying the drive for innovation, simultaneously, the sector is faced with navigating the aftermath of the pandemic which has triggered sector-wide disruption. As an industry defined by the traditional concept of the ‘handshake deal’, as with all consumer-facing industries that cannot rapidly respond to an online transition, automotive vendors continue to weather a significant slump in sales, fed by a weakened demand for transport corresponding with restrictions on global mobility, plummeting oil prices and weakened economies.

According to Arab News, in Saudi Arabia – previously recognised as the world’s fastest growing motor industry between 2010-2015 – new car sales fell by 60 percent during 2020 with a severe impact on the aftermarket as average spend per vehicle dropped by 25 percent. Indeed, across the MENA automotive market in general, third quarter sales across 2020 fell by 29.6 percent – despite every country recording a double-digit decline, Egypt alone reported positive growth. The general trend in market decline has been identified as a direct result of COVID-19’s impact on the economy, in addition to the fall in oil prices that created a deficit in the GCC market resulting in government-led tax increases and various restrictive economic policies.

Within the region, the oil-rich country of the UAE has become notable for importing high-end sports vehicles, with an outlook to establish itself as a manufacturing hub for luxury sports cars over the coming decades. This falls within the greater aims of the Gulf Cooperation Council (GCC) region towards economic diversification. As such, this is a market poised for significant growth with Saudi Arabia and

the UAE representing the major drivers. The growth potential here is significant particularly with the advent of electric vehicles (EVs).

Indeed, Saudi Arabia is a promisingly dynamic region within the sector, particularly with the recent addition of female consumers directly increasing the number of passenger vehicle sales and transforming the industry since Crown Prince Mohammed bin Salman lifted the ban on women drivers in 2018.

Turning to North Africa, Morocco’s auto industry has flourished to become the kingdom’s top exporter, representing over 24.4 percent of the country’s major exports. This is another area tipped for growth, as fertile ground for foreign automakers to open manufacturing plants. Looking to Egypt, the industry is still in recovery mode in the wake of the Arab Spring and is the recipient of significant government-led funding and support in an effort to revive the sector. Indicative of the intention to boost the country’s domestic production capacity, Mercedes-Benz announced plans to the Egyptian market with the construction of a new vehicle assembly plant following a statement in 2019.

Gradually, a burgeoning inclination towards digitalisation has begun to emerge, with MENA retailers exploring the potential of virtual showrooms and even the possibility of online car sales, as evidenced by success in the US auto markets. This is reflective of the innovative transformations that have been born from the pandemic.

In the face of such dynamic changes and shifts in consumer behaviour, the need is born for a unifying voice to consolidate and advocate for the many various players and stakeholders within the automotive sector.

MENA AUTOMOTIVE INDUSTRY – KEY STATISTICS

• Toyota is the leading automotive brand across Saudi Arabia and UAE. • Two million commercial and passenger vehicles sold across MENA region in 2019. • Turkey and Iran dominate regional automotive production, with 1.5 million and 1.01 million production units respectively. • Value of Saudi Arabia’s automotive aftermarket investment - $17 million. • Annual vehicle sales in the UAE – 235,000.

INTRODUCTION

Audi has recently announced the bold move towards full electric models from 2026 onwards – can you tell us more about that and how you think this will affect the future of mobility?

Audi is ready to make a decisive and powerful move into the electric age which is why we are transitioning our product range to electric in all of our core segments more systematically than any other established carmaker. As a brand, we have made a bold commitment that all new Audi models introduced from 2026 onwards to the global market will be all-electric. The impact of this move will be tremendous and marks the shift to a new era in the automotive industry as we know it and we aim to lead this charge. We hope that other manufacturers will follow suit as we aim to achieve net-zero emissions by 2050 at the latest. It really is a massive turning point and we are very excited to see what comes next.

What do you think puts Audi at the front of the pack when it comes to electric mobility?

At Audi, we believe in success through technology and innovation which is why this push from our headquarters in Ingolstadt is so important. We are continuously improving and innovating and with each electric model that carries the Audi badge, we aim to take another crucial step towards redefining mobility and building a sustainable future for future generations like we have done in the past. The introduction of the e-tron GT marks a significant milestone for Audi and we are thrilled that the Middle East is among the first territories to make it available for our discerning customer base. This vehicle is a 21st century reinterpretation of the classic Gran Tourismo and brings the best in sportiness and power to the electric segment, cementing the e-tron’s position as a definite leader in premium electric mobility, as shown in other markets globally over the past few years.

What do you think sets the Audi e-tron GT apart from other electric vehicles on the market?

The Audi e-tron GT is the most powerful production vehicle Audi has ever created – and its electric! This vehicle is not your average EV model; it’s a supercar in its own right and that really sets it apart from the rest. With this model, we are making the bold statement that luxury and sustainability do go hand in hand, and you don’t ever have to compromise on style, elegance or driving enjoyment when you go electric with the e-tron GT.

Can you tell us more about the technical features of the e-tron GT?

Yes, of course. The four-door coupe reinterprets the traditional Gran Turismo concept – its design is expressive, and its technology is truly revolutionary. Two powerful electric motors – one on the front axle, the other on the rear axle combined with the famous quattro permanent allwheel drive, create a driving experience unlike any other. The e-tron GT delivers 530hp while the RS version delivers 646hp in boost mode. The RS e-tron GT can sprint from 0 to 100 km/h in 3.3 seconds and reach a top speed of 250 km/h. Now that is power! Its chassis includes features such as adaptive three-chamber air suspension and an electronic differential lock on the rear axle. Matrix LED headlights with Audi laser light come as standard while a number of options are available, including up to 21-inch wheels and all-wheel steering. Of course a sporty driving experience is incomplete without the emotional sound of an engine – so it is definitely an added bonus that this car also sounds exactly like a GT should. The specially developed e-tron sport sound creates a fitting acoustic backdrop for this technological masterpiece. Combined with its stunning GT proportions and emotional design, this car is definitely a showstopper in every way.

How do you see the future for the Audi brand in the electric sphere regionally?

More than 80 percent of the models in Audi’s range are currently available with an all-electric or electrified drive system including plug-in hybrid drives (PHEV) and mild hybrid systems (MHEV). Because of this I see Audi continuing to be a leader and above all an innovator in this space and this will naturally filter through to emerging markets like our own where we see an incredible appetite for innovation and growth. One hot topic for us is infrastructure, which of course is an important pre-requisite for electrification. On a regional level, we are currently working on our own initiatives when it comes to development of high performance charging stations in addition to working closely with our market partners around infrastructure preparedness for the future in their respective markets.

Carsten Bender,

Managing Director, Audi Middle East

Ideas start the future.

The Incredible, fully-electric e-tron GT from Audi has arrived, ready to electrify the Middle East.

In the flurry of electric car launches taking place in the region, the e-tron GT is the one which stands out. Not only is it fully electric, but it’s also a bona-fide supercar by all measures, and its highly anticipated arrival in the region has not disappointed. “With the launch of the e-tron GT, Audi has continued to blaze the trail into the emotional, extremely exciting future of electric mobility. It’s a Gran Tourismo, in the true sense of the word. We are making the bold statement that luxury and sustainability do go hand in hand, and you don’t ever have to compromise on style, elegance or driving enjoyment when you go electric with the e-tron GT.” says Elmir Arnautovic, head of communications for Audi in the Middle East.

A new era of Gran Turismo: Powerful and Luxurious.

The striking, emotive design of the e-tron GT speaks loudly – The four-door coupé reinterprets the classic idea of the gran turismo: Its design is exciting and its technology underpinnings just as exhilarating. Two powerful electric motors provide dynamic driving performance and confident electric all-wheel drive. Beautiful lines, expressive design and impeccable curves define this incredible model – one that is dynamic and fascinating but oozes luxury and opulence. Not only that, but the e-tron GT is also the most powerful production model that Audi has produced yet! With 646 hp and 0-100 km/h time of 3.3s from standstill, (in boost mode within its RS guise), it means the e-tron GT easily outperforms its more established combustion engine siblings while still aiming to fulfill the sustainable standards of the future.

It’s all in the detail.

Passion for detail, maximum precision, and top quality are all hallmarks of the Audi brand. The new Audi e-tron GT reflects all the passion with which Audi develops and builds cars. For the production of this electrically powered Gran Turismo the company uses customized new technologies in its factory process – however, the finishing touches are done by hand. As one would expect from a premium, bespoke product such as this one. And since the dynamic work of art must also sound good, Audi has composed a unique sound for the e-tron GT- one that is powerful and progressive, emanating from speakers integrated within the vehicle’s architecture, and changing as its driving behavior changes. Another automotive first – just as expected from the brand with the four rings.

Efficiently sporty.

This supercar has a range of 488 km and 472 km for the RS version and takes only 22.5 min to charge from 5% to 80% using any currently available high power charger meaning you can get over 100 km of range with just 5 minutes of charging. Already ahead of its time, the e-tron GT can accommodate all currently available charging infrastructure, and is future ready too, with its battery design able to accept up to 270kW charging inputs, ready for the inevitable and ever-changing infrastructure developments within our cities.

The Audi e-tron is the world’s best-selling premium electric car

With the launch of the e-tron GT, Audi is continuing its transformation into a leader of sustainable premium mobility. In 2020, the brand with the four rings was by far the largest manufacturer of electric vehicles among Germany’s three premium brands. The extremely successful Audi e-tron models recorded year-over-year growth of 79.5 percent last year, with 47,324 units delivered to customers. More than 80 percent of the models in Audi’s range are currently available with an all-electric or electrified drive system, and the carmaker’s electric vehicle offensive continues to pick up steam, with Audi increasing the number of all-electric models in its range from three to seven this year. Looking ahead, the company has vowed to introduce only electric models from 2026 onwards cementing its commitment to sustainable mobility and a future focused on electrification. In the Middle East, Audi is also investing in several initiatives focusing on the development of high performance charging infrastructure in order to contribute to EV readiness in the region. The e-tron GT is currently available for purchase in Dubai, Abu Dhabi and Qatar with models becoming available across more markets in the region within the next 12 months.

Visit audi-me.com for more information or inquire with your local dealer.

Interview: The Automotive Association of Middle East & North Africa (AMENA)

Spanning the crucial divide between manufacturers, dealers, partners and professionals, AMENA have been the organisation to unify the automotive industry across the MENA region since 2018. Founder and Chairman Alan Whaley explores raising industry standards and driving innovation through thought leadership and knowledge sharing

Alan Whaley

Founder and Chairman, AMENA

EME Outlook (EO): Can you talk us through the origins of AMENA; how it came about, and its initial vision?

Alan Whaley (AW), founder and Chairman: After working in the automotive industry in the MENA regions for over 10 years, I realised there was no professional body for the original equipment manufacturers (OEMs), dealers/importers, Third Party suppliers and the people who work in the industry. This is unlike other parts of the world whereby either by country or continent, there is an organisation that helps and serves the industry.

I then canvassed opinion with various leaders and organisations for the need for such a body to exist and the response was overwhelming - hence AMENA was born.

The purpose of AMENA is to enable prosperity and success for manufacturers, dealers, partners, and professionals in the automotive industry in the region. The association delivers on this promise through insights and intelligence, collaboration, professional development, knowledge sharing, networking opportunities, and advocacy.

EO: Since inception, how has AMENA developed and progressed in terms of its key objectives and the messages it tries to get across?

AW: We have been involved in various projects and pressing issues that are facing the automotive industry, things like ‘Women in Automotive’ and that was our first event, we continue to support this cause with our partners across the region.

We are also involved in future mobility and how the industry is embracing itself for the new norm, the industry is going through its biggest infliction points since its inception over 150 years ago and the transformations are exclusively across the chain and the industry.

We also hosted the Innovation Zone 2020 for Automechanika Dubai (the largest international automotive aftermarket trade show in the Middle East).

AMENA – KEY EVENTS

Women In Automotive

As AMENA’s first event, the Women in Automotive Forum - first held in 2018 – continues to address the gender imbalance experienced in the automotive sector. The event showcases female luminaries and male allies in panel discussions and innovative spotlights in support of driving further gender diversity and female empowerment across the industry.

Innovation Zone 2020

As the Official Association Partner for Automechanika Dubai, AMENA hosted the Innovative Zone 2020 on behalf of the largest international automotive trade show in the Middle East. Both Whaley himself and MENA’s Paint and Bodyshop Expert, Graham Threlfall, delivered poignant seminars and keynotes covering pertinent industry topics, from drivers of disruption in the automotive aftermarket, to navigating transformations in the value chain.

EO: What do you find most exciting about working within MENA’s automotive market?

AW: We actively enable prosperity and success for manufacturers, dealers, partners, and professionals in the automotive industry across the region. We deliver on this promise through insights and intelligence, collaboration, professional development, knowledge sharing, networking opportunities, and advocacy.

EO: On the flip side, what are its biggest challenges?

AW: Changing the old school thinking behind everything being normal and eventually will return to normal. It is the avoidance or resistant approach to change that we know will cost organisations and individuals dearly if they don’t adapt or respond to the ‘new normal’ in the wake of the COVID-19 pandemic.

EO: What trends are currently transforming the automotive industry, particularly across the Middle East? How are you responding to them?

AW: Customer expectations are changing rapidly both in terms of the way they buy and the way they give their loyalty, both of which involves re-engineering customer journey and touch points and digital transformation.

Some organisations are adapting well and are fairly advanced in their journey. Some unfortunately are way behind and just haven’t made the move yet. There are many but of course the main ones are ACES, but most importantly, customer behaviour and expectations.

EO: Have you got any projects in the pipeline that you wish to highlight?

AW: In our relentless efforts to serve the automotive industry, I am delighted to announce that we have created the first of its kind Automotive Academy to develop and equip the leaders of the automotive industry not only to survive but to lead and thrive during these VUCA (Volatile, Uncertain, Complex, Ambiguous) times.

AMENA Academy is partnering with Hult Ashridge Executive Education, an internationally recognised business school that has developed and inspired leaders across the globe for more than 50 years. Their programmes are led by business leaders, not just academics, who understand the reality of business, not just the theory.

We would be delighted to get your readers’ valuable feedback as this will help shape the future of the automotive industry and how well we prepare our leaders, the link below is a short survey that will take three minutes.

https://hultbusinessschool.eu.qualtrics.com/jfe/ form/SV_2ftImzlkQbMizL8

“I am delighted to announce that we have created the first of its kind Automotive Academy to develop and equip the leaders of the automotive industry”

DID YOU KNOW?

AMENA produce and launch the Autofocus Podcast – the first automotive industry podcast in the MENA region to feature discussions with executives, thought leaders, change makers and disruptors within the sector, and is hosted by AMENA Chairman, Alan Whaley. Listeners can expect to enjoy practical advice, industry-changing ideas and best practices covering innovative topics such as women in automotive, the science of innovation, and the future of mobility.

Listen to Autofocus now on Apple Podcasts, Soundcloud, or Spotify.

We have also started doing some documentaries to share best practices and highlight some success stories in the MENA region. These can be found on our website (https://www.amenaauto.org/2021/07/ al-masaood-automobiles/)

EO: How do you see the industry developing over the next five years?

AW: The automotive industry is going through its most significant transformation since its inception over 150 years ago. Learning from some of the most remarkable lessons history have taught us, a crisis is always followed by chaos. Chaos is the ultimate double-edged sword. Some companies lose their competitive edge, and others gain unfair advantages and dominate their arenas.

There are many trends but of course the main ones are ACES but most importantly, customer behaviour and expectations.

In our Auto Focus Podcast, we have interviewed some of the most interesting thought leaders in the region and they have all shared their views.

Tel: +971 4 241 4726 office@amenaauto.org www.amenaauto.org