In the UAE, a Saudi company is opening a dealership for the high-end Chinese automaker Hongqi, whose models start at Dh90,000. The first step will be for Hongqi to open a showroom and servicing centre in Abu Dhabi. Over the years, the Chinese President and other high-ranking government officials have preferred the brand's limousine.
Since 2021, the Saudi business Altawkilat has been representing Hongqi in the Kingdom. Now, Altawkilat thinks it's time to expand into the UAE, starting with Abu Dhabi and moving on to Dubai and Sharjah.
Through 2021–2022, Chinese-owned brands had been gaining ground in the UAE thanks to aggressive pricing and after-sales service programmes. According to numerous experts in the auto business, more Chinese companies will enter the UAE and Gulf markets, particularly as EV demand begins to gain traction.
Intriguingly, Hongqi is the first Chinese brand attempting to build a name for itself in the UAE's high-end vehicle market, with its top-of-the-line EV cars retailing for Dh390,000.
“There are three EVs available right now, and we will expand the line up with a smaller SUV and sedan,” said Mohammed Abduljawad, Chairman and CEO of Altawkilat. “Chinese made car sales in Saudi Arabia grew 30 per cent in 2022 and the clear impression is these brands are starting to make a difference.
“In our case, market share for Hongqi in Saudi Arabia and now in the UAE will follow if we keep doing the right things from the beginning.
“On value for money, it will be quite difficult to beat the Chinese offerings. But it will never be about the lowest prices and dumping models in these markets.”
Whether it's the H5 or HS7 sedans or the E-HS9 SUV, the Hongqi lineup certainly appear remarkable. Up until this point, the popular Chinese auto manufacturers in the UAE have largely competed in the Dh50,000–Dh75,000 price bracket, with companies like MG, Geely, and JAC gaining progress.
For Hongqi, the dealership is offering 7-year warranty – and unlimited at that. “The models can hold their own, but we will need to support the brand all the way,” said Abduljawad. “The 7-year warranty is the only one of its kind anywhere in the world.
“The showrooms and service centers will serve a purpose, but we need to offer a premium experience to buyers. Pick up and drop off for servicing from the owner’s home or place of business – we will do the whole works.
“This is winning the brand acceptance in Saudi Arabia and we will make it work in the UAE too.
“Hongqi is a luxury brand – if we gradually win demand in the thousands, we would have done well.”