Fuel price deregulation not to affect automotive industry
Fares remain ‘minimal compared with the current GDP/Capita
Saygin Yalcin, CEO at SellAnyCar.com, the leading online car-buying service in the UAE, tells AMEInfo about the deregulation of fuel prices in the country and its impact on the automotive industry.
The government has decided to free up petrol and diesel prices and set up a committee to review prices against average international levels. The committee will announce, on the 28th of every month, the prices for the month that follows.
How has the automotive industry in the UAE performed in the first quarter of 2015?
The first quarter of 2015 saw a substantial drop in crude oil prices in the international commodity market. This reduced the surplus enjoyed by local governments as well as petrochemical companies in the region. These companies and governmental entities have tightened the purse strings on non-essential purchases, which had an impact on the sale of vehicles and resulted in lower growth in the first quarter of 2015. For SellAnyCar.com, it was a steep growth phase, nonetheless. As a marketplace, our business adapts automatically to market fluctuations.
The UAE has deregulated fuel prices. What are your thoughts about the new policy’s implications on the country’s automotive industry?
Deregulating fuel prices will help reduce fuel consumption and preserve natural resources for future generations. The main aim is to encourage individuals to adopt fuel-efficient vehicles, including the use of electric and hybrid cars. However, I believe that deregulating prices would not have a major impact on the automotive industry in the short term, as the increase is barely notable on individuals’ costs of living.
Do you anticipate a steep decline in car sales because of the new move?
The auto market is growing, but not at the same rate seen in the past year. Increasing petrol prices will have no effect on sales in the short term, as it still is minimal compared to the current GDP/capita.
Analysts say that users of gas-guzzling SUVs are going to be hit. Please comment.
The pace of SUV sales in the GCC is among the highest in the world. I believe that in order to change this, it will require much more than a price increase and at least several years.
How were the past months for SellAnyCar.com? Where is it placed now in the market?
Our volume has grown almost five times this year alone. SellAnyCar.com has proven to solve a problem for consumers by building a true marketplace and generating a win-win situation for both the industry and the general public. The website has grown to be the largest specialised car buyer in the region. SellAnyCar.com is now active in the UAE, Saudi Arabia, Turkey and Germany. In addition to that, we will soon launch in Qatar before expanding into the rest of the GCC and the Levant.
In the long term, especially when global oil prices shoot back up, the fuel price deregulation will have some impact on the automotive sector. Would you agree? Do you have any specific strategy in mind for SellAnyCar.com?
SellAnyCar.com will stick to its current strategy, as long as the changes in fuel prices do not have a disruptive effect on the general population, which might impact car ownership change rates or share of wallets.
Iran has signed a nuclear deal and sanctions are going to be lifted. As a result, a new market is opening with many opportunities. What are your thoughts on the subject? Are you eyeing the Iranian market?
Iran has always been an attractive market with its bright young population looking for further internet consumer products to help improve their lives. At SellAnyCar.com, we would like to keep all our options open, without having any specifics in mind.
Source: AMEinfo, http://ameinfo.com/luxury-lifestyle/automotive/cars/sellanycar-ceo-fuel-price-deregulation-not-to-affect-automotive-industry/
About the Author
SayginYalcin Saygin is the Founder & CEO of the Middle East's (ME) first & largest car buying service, SellAnyCar.com and Founder of the first & largest online private shopping club in the ME, Sukar.com, which has been acquired by Souq.com, making him Partner at the Souq.com and Jabbar Internet Group, becoming the largest ecommerce company in the Arab world, with 3000+ employees. In its largest acquisition outside the US to date, Amazon.com has acquired Souq.com Group. He has been selected as a UBS Industry Leader, a network of Ultra-High-Net-Worth Individuals. He was also Advisory Board Member & Academic Lecturer of Entrepreneurship at the Canadian University of Dubai. He was referred to as "the region's online business guru" by the National newspaper in the UAE, while Arabian Business named him as "one of the region's finest young entrepreneurs and a major part of the entrepreneurial scene in recent years". Fortune magazine (mag) named him in the 40 under 40 list, as one of the most influential young people in business, Entrepreneur mag ME awarded SellAnyCar.com, with Saygin at its helm, as the "Fastest Growing Company in the ME", while the National newspaper sees it among a handful of tech companies to "have the potential to break the $1bn barrier". In a cover story, Entrepreneur mag ME titled him as "undoubtedly one of the youngest & most successful internet entrepreneurs in the ME”, awarded SellAnyCar.com as "Technology Innovator of the Year”, while Khaleej Times awarded him as the Technology Leader. Gulf Business selected him as 1 of the Top 10 Entrepreneurs in ME. In a cover story, Arabian Business counts him as 1 of the most successful entrepreneurs to call Dubai home. During the World Government Summit, HH Sheikh Saif Bin Zayed, Minister of Interior of the UAE, presented Saygin as an inspiring story for the country, in the presence of world leaders, incl. HH Sheikh Mohammed Bin Rashid Al Maktoum.
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