Saudi Gazette report

JEDDAH — As the global economy reels under the COVID-19 pandemic, the automobile sector has also been badly hit both inside the Kingdom as well as outside.

The recovery seems to be an uphill task in the face of an unprecedented crisis gripping the sector.

To discuss the challenges facing the automobile sector and the road ahead, Mark Notkin, the managing director at Mohamed Yousuf Naghi Motors Company, speaks to the Saudi Gazette in an exclusive interview.

What are the strategic objectives of your MYNM in the present scenario?

First and foremost, I would like to state that 2020 is an incredibly special year for MYNM. This is the 30^th anniversary of our partnership with BMW Group.

Our vision has always been to develop and grow profitably, becoming a benchmark for premium mobility in the Kingdom.

MYNM’s strategy is based on five pillars:

New business processes: They key to our success is streamlined and granular performance management, in correlation to our valuable customer lifetime.

Optimized product portfolio: We understand that young people amount to a higher percentage of the Kingdom’s population; 48 percent of Saudis are in fact 24 years old and younger. One of our key objectives is to introduce models that are appealing to the younger generation. Our research demonstrates that the most popular models include the BMW 1 Series, BMW 2 Series, BMW X1, BMW X2, and of course, MINI.

Additionally, we want to make sure we have a variety of models well suited to those who are 25 years and above, keeping them as engaged with the brand as possible. Studies show that models such as the BMW 7 Series, BMW 5 Series, BMW X5, and BMW X7 are the perfect fit, due to their unique specifications.

Exclusive full-service offer: We ensure intelligently orchestrated sales and service channels that offer a thoroughly consistent and personally relevant brand experience.

Customer’s 1^st choice: Understanding customer expectations, as well as the ways people shop and buy, are critical to success. Our considerations and choices are always made with the customer in mind. Therefore, we implement initiatives to constantly respond to our clients’ ever-changing needs in a timely manner.

Rising sales and profit: Improved marketing performance and social media presence has led to rising sales and increased profits, generating positive results for all our partners.

What is your view on smart buyers in Saudi Arabia?

Smart buyers are driven by “value for money”. In line with our strategy, we have not only enhanced the option profiles of our vehicles but reduced “time to the market”, improving our availability of the stock vehicles.

The key success factor here is “human capital”. We spend substantial amounts on recruitment and training and continue to invest in our excellent workforce. This is particularly important for us because we understand that customer satisfaction is key to sales and customer loyalty. Ultimately, this has helped us to improve the quality of service and buying experience in our showrooms.

We understand that our discerning customers see the experience of owning a BMW or MINI cars extending beyond the driving pleasure offered by our vehicles, which is why we ensure to provide them with a luxurious and seamless experience from the second they enter any of our showrooms and service centers, offering them an experience unmatched by other competitors or unauthorized sellers, including our team of experts who know every single model inside-out and are trained to demonstrate and help familiarize customers with all aspects of a car — before, during, and after purchase.

What services do you offer to your customers?

It is important to note that in 2019, BMW Group had the lowest MCI complaint rate across the whole of Saudi Arabia.

We always provide excellent customer experience and offer a wide range of products and services to meet the needs of our clients. These include:

• A variety of services and repair packages lasting up to 10 years or 200,000 km (whichever comes first)
• A range of accessories, including a variety of lifestyle products for bicycles
• We send out continuous updates focusing on our vehicles and available promotions
• BMW Value packages and frequent offers
• Body shop quality repair and smart repair, alongside a BMW approved color system
• In house service and maintenance, guaranteeing we are the most efficient, quality-driven, and affordable option in the entire country
• We provide highly skilled certified technicians who go over and beyond for each customer
• High tech. diagnostic tools which can easily detect the most minor of faults
• A range of navigation and software updates

How did MYNM perform in 2020, and how do you plan for the rest of the year?

Despite the global effects of COVID-19, the dealership closed the first half of 2020 with double-digit growth, and we plan to maintain the same momentum until the end of the year.

One of our top-performing brands is MINI that saw double digits growth rate year on year. MINI has become exceedingly popular in the Kingdom.

Can you tell us more about the top-performing models and the variety you offer your customers?

Within BMW’s brand portfolio, the best performing model is without a doubt, the BMW 7 series. The car is closely followed by the BMW 5 Series and our exquisite range of SAVs models including the BMW X4, BMW X6, and BMW X5.

In the second half of 2020, we are planning to launch several much-anticipated vehicles across our three brands, including:

• The new BMW 5 Series
• The new BMW 4 Series Coupe
• The new MINI Countryman
• The new Rolls-Royce Ghost
• The new BMW R 18 Motorrad

We are also preparing to launch a range of “30th-anniversary edition” vehicles. Unfortunately, we cannot share any more information at this stage, however, we can assure that each car-buyer will be delighted with having more choice.

What steps is MYNM taking to ensure health and safety for both customers and staff?

The dealership has been continuing to implement the highest level of care and hygiene measures during COVID-19, following the guidance received from official government authorities. Our vehicles and facilities are fully and constantly disinfected, safeguarding MYNM as a safe place to work, purchase, and service vehicles.

How do you assess the impact of the VAT increase on your business, alongside business in general in Saudi?

It would be shortsighted to say that the increase in VAT will have no negative impact on sales in the Kingdom in general. However, the magnitude of this measure will vary from brand to brand. BMW Group exudes an abundance of desirable products. Combined with MYNM’s strong reputation and offers, we predict the impact on our business will be minimal.

Can you share your plans to increase your presence in the market?

COVID-19 has taught us that the need to increase our digital presence is of paramount importance. Therefore, to offer a fruitful and innovative customer journey, we launched our online showrooms, guaranteeing that each customer could receive an efficient and seamless service in the most convenient and safest way possible.

In parallel, we are continuously enhancing our physical infrastructure. By the end of Q4, the refurbishment of the Khorais Road facility in Riyadh will be completely finalized. The new Rolls-Royce showroom in Riyadh and the new fully-fledged facility on the Riyadh Northern Ring Road will also shortly follow in 2021.

The purpose of constantly improving our online and offline presence is to create a 360 experience for our clients. We want to guarantee that each customer can enjoy MYNM’s seamless integration of physical and digital sales channels.