Hussam Baghdadi, the Senior Director at Arabian Automobiles Company (AAC), discussed with Gulf Business the company’s strategies in navigating the competitive automotive landscape in the UAE. He highlighted how initiatives focused on digital buying experiences, adaptable ownership options, and data-informed insights are allowing AAC to enhance customer experiences and meet changing consumer demands.
Below are key insights from the discussion.
How is AAC adapting to changing consumer expectations in the UAE, particularly with the emergence of digital car buying journeys and the demand for transparency in purchases
Our approach is fundamentally customer-focused. Instead of merely reacting to trends, we strive to foresee and influence them, especially as the UAE consumer shifts more towards online platforms.
This perspective has led to a significant transformation in our retail and service frameworks.
We are heavily investing in e-commerce functionalities and integrating digital campaigns to facilitate seamless interactions across digital channels.
The AWR Connect app empowers customers to oversee their complete ownership experience, encompassing service appointments, delivery tracking, and aftersales support, all through one platform.
Additionally, we have overhauled our Customer Experience Division with digital innovations aimed at boosting operational efficiency by reducing wait times and enhancing service productivity.
Looking forward, we are harnessing advanced technologies, such as AI-based concierge services and adaptive inventory systems informed by predictive analytics, to customize the customer journey, optimize stock management, and offer smooth online-to-offline transitions.
Our objective remains consistent: to provide a seamless, transparent, and interconnected experience that surpasses customer expectations.
As Dubai invests in enhancing its automotive ecosystem, how is AAC aligning its strategies to remain competitive in areas like aftersales innovation, mobility services, and customer experience
We fully support Dubai’s vision for a future-ready automotive landscape. Our central focus is on placing the customer at every decision-making stage, delivering value throughout the ownership experience.
Our aftersales initiatives feature real-time booking options, seasonal maintenance packages, proactive service notifications, and efficient pick-up and drop-off services during busy times.
We continuously enhance our state-of-the-art facilities with interactive systems to provide quicker and more intuitive service encounters.
Furthermore, we are digitizing our parts business and developing a new platform to improve speed, transparency, and adaptability.
Our mobility services are advancing with flexible leasing options, bundled services, and digital tools designed to empower consumers.
By interconnecting sales, aftersales, and mobility services, we aim to create a fluid and progressive experience that reflects Dubai’s growth as a hub for intelligent and sustainable mobility.
How is AAC addressing inventory management, vehicle availability, and delivery timelines in light of ongoing global supply chain recovery
The UAE is equipped with top-tier infrastructure and sophisticated customs systems that ensure supply chains remain effective.
Our proactive forecasting and planning, developed alongside global OEM partners, are vital for effective inventory management and maintaining availability across our network.
By securing early container bookings and diversifying shipping routes, along with fostering strong relationships with suppliers, we can respond to global challenges with minimal disruption.
The forthcoming Parts Distribution Center (PDC) will further streamline our planning processes, enhance inventory management, and maximize order fulfillment, reinforcing our high service standards at Arabian Automobiles.
Dubai’s economic stability across sectors such as logistics, tourism, real estate, and finance bolsters sustainable growth in the automotive market.
With changing patterns in car ownership in the UAE, how is AAC meeting the increasing demand for used cars, flexible financing, and lease-to-own options
Our customer-centric approach is reflected in all our offerings. Initiatives like ‘Rent to Own’ and ‘Lease to Own’ provide convenient and affordable pathways to vehicle ownership, particularly with Nissan and INFINITI models.
Flexible financing options are fundamental, facilitated by major banks providing competitive EMI plans, deferred payment opportunities, and quick approval processes.
Our NXT brand ensures that used vehicles meet rigorous inspection criteria, emphasizing quality, safety, and dependability.
These initiatives underscore our commitment to evolving mobility solutions that cater to every aspect of the ownership journey.
How do you perceive the shift in customer preferences between purchasing new and used vehicles, and what insights has AAC gathered regarding the priorities of today’s buyers — price, warranty, technology, or convenience
Today’s consumers are well-informed, research-oriented, and increasingly receptive to alternative ownership models. While new vehicles attract those interested in the latest innovations and designs, the used car market is expanding due to cost-effectiveness, flexibility, and reassurance.
Critical elements influencing this trend include price sensitivity, awareness of value, and trust in certified pre-owned programs.
Convenience is now a significant factor driving purchases, with transparent and secure digital transactions simplifying the process of buying and selling. Our investments in thorough inspections, flexible finance packages, trade-in opportunities, and predictive analytics align our inventory with consumer demand.
Key differentiators between new and used segments now include price, flexibility, warranty, aftersales support, technology, and ease of transactions.
In light of the diverse and competitive automotive market in the UAE, what consumer trends have caught you off guard in the past few years, and how is AAC leveraging data to stay ahead of customer expectations
A notable trend is the escalating consumer demand for innovative and design-oriented experiences. Customers in the UAE are increasingly looking for vehicles equipped with cutting-edge technology, intelligent safety features, electrified powertrains, and modern design elements.
Younger, tech-savvy drivers often see vehicles as an extension of their lifestyles.
There is a burgeoning interest in smart mobility solutions, intuitive infotainment systems, and sustainable designs. Data and analytics are integral to our demand forecasting, inventory optimization, and personalized offerings.
Every interaction point, from showroom layouts to online engagements, is guided by real-time data to maintain relevance. The push for sustainable mobility is on the rise, supported by national strategies and infrastructure investments.
To remain competitive by 2025, it is essential to incorporate these priorities across our value chain in tune with evolving consumer demands.