Nagy Heneine General manager, Bassoul-Heneine BMW, Mini, Renault, Alfa Romeo and Dacia
“Sedans used to be the Lebanese car of choice at over 80 percent of sales,” said Nagy Heneine, general manager of Bassoul-Heneine. “But in 1999 we launched the BMW X5, the first sports activity vehicle [SAV], and since then 4×4 sales haven’t stopped growing. Over 50 percent of sales are now in the SAV segment. In Lebanon, the two most popular styles are the X5 and the X6.”
“In Lebanon we still don’t have a fuel efficiency concern, but in the popular car segment efficiency is more important,” he added. “This is where the government should be more strict, as the environment should be a major concern. Many cars are very pollutive, but the government does nothing. They should enforce rules, have laws on imports and offer incentives. In the mindset of the people the environment is increasingly important. BMW is a pioneer in this, and it has been awarded best car company for lowering emissions. The future of cars in five to six years will be electric vehicles.”
Next year BMW, along with other brands will introduce hybrids, which Heneine pointed out are even faster than normal cars, a fact that could prove a boon for sales despite the higher price tag.
“In some countries there are incentives to drive hybrids, and its makes sense to buy them. There is an [awareness of the benefits of hybrids] in Europe but not in this region, although it will come one day.”
Fayez Rasamny Vice chairman, Rasamny Younis Motor Company Nissan, GMC, Infiniti and Kawasaki
In October, the Lebanese authorities banned motorcycles and mopeds after 6 p.m. following clashes between young men riding two-wheelers, in addition to cracking down on riders without helmets and unregistered mopeds.
“It is not a permanent law and the authorities had to do it,” said Fayez Rasamny, vice chairman of Rymco, dealer for Kawaski motorbikes. “There are a lot of scooters (“mobilets”) running around town, and I would ban used scooters and only sell new ones, not for $100 but $1,000. These mobilets are causing a number of problems and many are un-registered. But it has not affected our sales [of new motorcycles].”
Sports Utility Vehicles (SUVs) are “image boosters. They are a practical decision for Lebanese roads, and there is a common perception that you can’t own a home without an SUV.”
Rasamny said Lebanese consumers are “not concerned” about fuel consumption. “You know Lebanon, they prefer to have a SUV and not think about fuel consumption.” As for environmental awareness, “it will never pick up. Environmentalism should be endorsed by the government, not by the private sector. But you do what you can do for the environment.”
Negib Debs Brand manager, T. Gargour & Fils Mercedes-Benz, Smart
For Negib Debs, brand manager of Mercedes at T. Gargour & Fils, the sports utility vehicle (SUV) segment is a “fashion statement.”
“People go for a brand because they see such and such a singer driving it, or an important personality, it’s a fashion and sales boom,” said Debs.
“For a family to drive up to Faraya, an SUV makes sense, but for a lady driving a Hummer in Ashrafieh, it doesn’t. It’s too wide for the roads, yet it’s a fashion statement. People also follow a design, and in my opinion I’m afraid of such trends because when people follow a design, after one to two years, max three, this design is obsolete and it is not a sustainable business.”
“When you start with an S-Class Mercedes nobody cares about fuel consumption or CO2 emissions, or what they’re concerned about in Europe,” he continued. “We’re still quite far off. In Europe, you pay $1,000 more for a cleaner car, but here people don’t care, there is no civic consciousness yet. People are not yet asking about fuel consumption, unfortunately, but they know everything else about a vehicle. The Lebanese love cars, and many come here knowing everything about the vehicle, including particular details.”
The number of new and luxury cars on Lebanese roads often puzzles visitors to the country, given the low GDP per capita of $11,100 per year and a minimum wage of $333 per month.
“Around 5 percent of people can afford luxury cars, which is around 100,000 people, so with total new car sales per year of 33,000, this makes sense,” explained Debs.
