Exclusive Interview with Mohamed Khodr, President of Al Majid Motors

By: Anas Assaf

September 6,2018

4 min read

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Introduction

In an exclusive interview with Mohamed Khodr, President of Al Majid Motors—the official distributor of Hyundai and Kia in the UAE—we gained valuable insights into the current trends in the automotive industry, expected sales for this year, and his candid opinions on electric vehicles in the region.

Mohamed Khodr's Career Path

Question: Can you tell us a bit about yourself and your career path that led you to become the President of Al Majid Motors?

I began my career with the Al Majid Group in 1992, starting in the sales department for Hyundai vehicles. Within a year, I was promoted to showroom manager and later transferred to Al Ain as branch manager. After a decade in Al Ain, I returned to Dubai as the national manager for Hyundai, and shortly after, I had the opportunity to become the President of Al Majid Motors for Kia. It has now been nearly ten years, and it has truly been an exciting journey.

Current Trends in the Automotive Industry

Question: What can you tell us about the current trends in the automotive industry in the Middle East?

Without sugarcoating the facts, the current political and economic situation is impacting new car sales across all brands in the Middle East. While we witnessed an 11% growth in Kia sales in 2017 compared to 2016, it is unlikely we will see numbers exceeding 10% this year. Despite Kia being one of the fastest-growing brands globally, we don't have many new models available aside from the all-new Cerato to boost sales this year.

New Models from Kia

Question: Speaking of new models, what can we expect to see from Kia next year?

2019 is an exciting year for us, with many new models planned. Starting in January, we will introduce an all-new SUV (similar in size to the Toyota Land Cruiser and Nissan Patrol) featuring a large 3.8-liter engine along with a smaller turbocharged option. Additionally, we will also introduce affordable vehicles in the A and B segments, manufactured in China, ensuring the same quality and reliability our customers expect.

Strategies to Tackle Challenges

Question: Given that the automotive industry is facing tough times, what strategies is Al Majid Motors adopting to address this?

I wish I could provide a simple and straightforward answer, but the truth is we are constantly adjusting our strategy every two months based on market analysis. While some choose to lower prices to attract customers, this practice is unhealthy and something we want to avoid. Instead, we focus on providing more to our customers in terms of features and after-sales service to differentiate ourselves from the competition. As we approach 2019 and the significant year of 2020 in Dubai, we remain optimistic.

Shifting to Digital Marketing

Question: How is Al Majid Motors embracing this shift towards digital platforms?

At Al Majid Motors, we recognize and understand that digital platforms are the future. In the past, we heavily relied on advertising in newspapers and magazines, but we have shifted our focus to digital and social media platforms to keep pace with the times. In addition to ads on Facebook, Twitter, and other major social media platforms, we utilize banner ads on websites, which are easier to track and attract a larger audience.

New Facility Opening in Sharjah

Question: What is the expected increase in visitors or sales from the new facility that Al Majid Motors opened in Sharjah?

Our new facility, which offers three services (sales, service, spare parts), aims to increase sales, but only after improving the quality of service we provide, enhancing customer satisfaction, and elevating our brand image. We are genuinely focused on quality over quantity in the services we offer. I can tell you that the type or demographics of customers who visit our branch in Sharjah are quite different from those in Dubai.

In Sharjah, the majority of our customers are Emirati, and I believe we have more Emirati clients at our Sharjah branch than at our Abu Dhabi branch. Speaking of new facilities, we have a new facility in Fujairah and a multi-story facility set to open on Sheikh Zayed Road in the next 18 months.

Perspective on Electric Vehicles

Question: What is your opinion on electric vehicles, and when can we expect to see something new from Kia?

Just as digital platforms are the future of marketing, electric vehicles represent the future of the automotive industry. Although Kia has electric vehicles like the Optima, Soul, and Niro available in other markets, we are hesitant to introduce them in the UAE because we don’t believe customers are ready for them. Many of our customers reach out to dealerships asking about the Kia electric lineup, but they are savvy with their questions regarding battery life, costs, and how much they would save by switching to electric vehicles compared to traditional gasoline cars. The reality is that electric vehicles can be expensive, and we are fortunate to have reasonable gasoline prices, so electric cars don’t offer much at this stage.