Car imports in reverse, but wealthy Kurds still drive market
ERBIL, Kurdistan Region – Slumping oil prices and security concerns have put a dent in the Kurdistan Region’s vehicle import market, but enthusiasm for luxury cars was still in high gear at Sixth Automobile Fair held last week in Erbil.
Abdullah Abdulrahim, the director of the Fair, told Rudaw the $20 million per year industry was in a slump but, despite lower-than-average attendance , the expo was a success.
“Last year 75 companies took part in the fair, however, for the current year only 50 companies have participated, out of which only 11 companies presented automobiles. The rest exhibited car parts,” Abdulrahim said.
He added that, as usual, the big attractions were high-priced luxury cars such as Range Rover and Jaguar.
“Range Rover is a car for special people. Its price range goes up to $220,000. In Kurdistan, three cars at that price has been sold,” said Kaziwa Kamal, director of sales for Range Rover.
“We also have Jaguars that price at between $100,000 -$150,000. We have sold seven already.”
Kamal said even the iconic brand Rolls-Royce , a British car used now manufactured in Germany, has found its way to the Kurdish market.
“When our people go abroad and see all the nice cars. When they return they want those cars. For example, Rolls-Royace is priced at $400,000 and we have sold 15 of them in Kurdistan,” he told Rudaw.
Even so, Kamal said ultra-luxury brings their own risks.
“Government officials do not buy this kind of cars. If they do, their car will stand out. It’s not like they’re going to buy 10 of them to avoid that. So they go abroad and drive these types of cars there.”
Most of the automobiles at the fair were white, apart from the expensive cars. As Kamal explained, “People of Sulaimani prefer different colors, however, people from Erbil and Duhok prefer white.”
Hemin Ali, Mercedes sales manager, was bullish on the automaker’s S Class, it’s most expensive model priced at $200,000. The S Class Mercedes also provides 72 hours of breathing oxygen should the occupants be trapped.
“Those who like magnificence buy Mercedes,” said Ali.
Lawand Dilshad, the BMW sales manager in Erbil, said the company’s price range from $38,000 to $180,000 was more suited to the average car buyer.
Others, such as fair attendee Sarbaz Hussein, expressed a penchant for the finer things.
“I have a Range Rover, BMW, and Porsche. When I turn 45 I will buy a Mercedes, too. I bought a Range Rover for its safety. I use my BMW mainly for my family and Porsche for my spare time as a young man,”said Hussein.
“When I turn 45 I will buy a Mercedes, because Mercedes is a car for high-profile personalities.”
While the luxury market is perhaps more exciting, the overall car market in the Kurdistan region is dominated by Japanese and Korean cars, particularly Toyotas.
Muhammed Qays, of the Toyota sales department, said 6,000 Toyota cars are sold in Kurdistan each year. “Toyota is the top choice for everyone in Iraq.”
A staff member of one of the car companies revealed a trick used by some Kurdish businessmen.
“Japanese and Korean cars in Kurdistan do not carry much weight. That is because the qualities of these cars are adjusted for the Kurdish businessman’s demands. But the German companies do not change their qualities,” Ahmed Abdullah, a salesman at Skoda, said.
“That is why Japanese and Korean cars have different qualities in different parts of the world. The Korean car in Europe is different from the ones here. But Mercedes’s quality is the same across the globe.”
He added, “Businessmen import low-quality Japanese and Korean cars but add features to them here and sell them at a higher retail price.”
Abdullah Abdulrahim, the director of the Fair, told Rudaw the $20 million per year industry was in a slump but, despite lower-than-average attendance , the expo was a success.
“Last year 75 companies took part in the fair, however, for the current year only 50 companies have participated, out of which only 11 companies presented automobiles. The rest exhibited car parts,” Abdulrahim said.
He added that, as usual, the big attractions were high-priced luxury cars such as Range Rover and Jaguar.
“Range Rover is a car for special people. Its price range goes up to $220,000. In Kurdistan, three cars at that price has been sold,” said Kaziwa Kamal, director of sales for Range Rover.
“We also have Jaguars that price at between $100,000 -$150,000. We have sold seven already.”
Kamal said even the iconic brand Rolls-Royce , a British car used now manufactured in Germany, has found its way to the Kurdish market.
“When our people go abroad and see all the nice cars. When they return they want those cars. For example, Rolls-Royace is priced at $400,000 and we have sold 15 of them in Kurdistan,” he told Rudaw.
Even so, Kamal said ultra-luxury brings their own risks.
“Government officials do not buy this kind of cars. If they do, their car will stand out. It’s not like they’re going to buy 10 of them to avoid that. So they go abroad and drive these types of cars there.”
Most of the automobiles at the fair were white, apart from the expensive cars. As Kamal explained, “People of Sulaimani prefer different colors, however, people from Erbil and Duhok prefer white.”
Hemin Ali, Mercedes sales manager, was bullish on the automaker’s S Class, it’s most expensive model priced at $200,000. The S Class Mercedes also provides 72 hours of breathing oxygen should the occupants be trapped.
“Those who like magnificence buy Mercedes,” said Ali.
Lawand Dilshad, the BMW sales manager in Erbil, said the company’s price range from $38,000 to $180,000 was more suited to the average car buyer.
Others, such as fair attendee Sarbaz Hussein, expressed a penchant for the finer things.
“I have a Range Rover, BMW, and Porsche. When I turn 45 I will buy a Mercedes, too. I bought a Range Rover for its safety. I use my BMW mainly for my family and Porsche for my spare time as a young man,”said Hussein.
“When I turn 45 I will buy a Mercedes, because Mercedes is a car for high-profile personalities.”
While the luxury market is perhaps more exciting, the overall car market in the Kurdistan region is dominated by Japanese and Korean cars, particularly Toyotas.
Muhammed Qays, of the Toyota sales department, said 6,000 Toyota cars are sold in Kurdistan each year. “Toyota is the top choice for everyone in Iraq.”
A staff member of one of the car companies revealed a trick used by some Kurdish businessmen.
“Japanese and Korean cars in Kurdistan do not carry much weight. That is because the qualities of these cars are adjusted for the Kurdish businessman’s demands. But the German companies do not change their qualities,” Ahmed Abdullah, a salesman at Skoda, said.
“That is why Japanese and Korean cars have different qualities in different parts of the world. The Korean car in Europe is different from the ones here. But Mercedes’s quality is the same across the globe.”
He added, “Businessmen import low-quality Japanese and Korean cars but add features to them here and sell them at a higher retail price.”