Ford’s Saudi agents price cars in line with local market conditions: MD

In an interview with Argaam, Malkawi said Ford's two authorized dealers in Saudi Arabia, Al Jazirah Vehicles Agencies Co. and Mohamed Yousuf Naghi Motors Co. (MYNM), account for 57% of Ford's total business in the Middle East.

He explained that the global rise in metal prices and the shortage of semiconductors have overall impacted production costs in the automotive industry. However, Ford continues to assess these challenges while maintaining a strong focus on delivering value and quality to its customers.

Malkawi also discussed Ford's investments in the Saudi market, their sales growth expectations, and the company’s outlook on the future of electric vehicles in the Kingdom.

Below are the details of the interview:

Q: How does Ford view Vision 2030, which aims to position Saudi Arabia as a regional automotive hub? How will Ford contribute to this goal?

A: The growth achieved by Saudi Arabia recently has been exceptional, supported by significant public and private sector investments as well as the expansion of the non-oil economy. These dynamics have not only created an ideal environment for a thriving automotive market but have also inspired Ford to deepen its commitment to the Kingdom.

We fully embrace the transformation driven by Vision 2030 and are committed to contributing to its objectives. With our extensive expertise, technology-driven innovations, and customer-focused strategies, we actively support shaping the rapidly evolving future of the automotive sector in the Kingdom. The company’s strong sales momentum and strategic investments underline Ford’s dedication to the Saudi market and its alignment with Vision 2030’s goals of a diversified, advanced economy driven by sustainable growth and innovation.

Saudi Arabia is one of our largest markets. We are making significant investments in the Kingdom, focusing on our people and partnerships.

We recently appointed Amith Shetty as County Director, Saudi Arabia and Talal Al Amri as Regional Sales Manager. The new appointments reinforce Ford's long-term commitment to the Kingdom, strengthening our relationships with dealers and enhancing our ability to serve current and future customers effectively.

Moreover, our dedication to our Saudi dealer partners, Al Jazirah Vehicles and MYNM, is crucial to our regional success. Thanks to our strong partnership, Ford has become one of the fastest-growing automakers in Saudi Arabia, with these two dealers accounting for 57% of our total Middle East operations. Their invaluable support is key to achieving our shared goals for the Kingdom and advancing Vision 2030.

Q: How did Ford's sales in Saudi Arabia reach in the first half of 2024 compared to H1 2023? How does the company view its performance in the Kingdom compared to other markets?

A: Ford remains deeply committed to the Middle East, especially Saudi Arabia, as reflected in its strong performance there. In the first half of 2024, Ford achieved a remarkable 15% year-on-year (YoY) increase, demonstrating the success of its regional strategy.

This year, the Saudi market celebrated several significant milestones, solidifying Ford's position as a leading automotive brand in the Kingdom. September marked the best monthly sales since 2015, with outstanding performance across several models, including record-breaking sales for the Territory, Everest, and F-150. This momentum has positioned Ford as the fifth-largest automaker in Saudi Arabia.

Since its launch in 2023, Territory has quickly gained traction in the highly competitive small SUV segment, securing second place in this category. Meanwhile, the Ford Taurus sedan maintained its upward trajectory, recording an impressive 77% sales increase in 2023, making it the second-best-selling sedan.

The newly launched Everest SUV has swiftly climbed to third place in the traditional mid-size SUV segment, underscoring its appeal in the region. Additionally, Ford Mustang continues to dominate as the top high-performance sports car, maintaining an unrivaled position in its class.

Q: How do you see the competitive landscape in the Saudi market, especially with the entry of Chinese car brands? What is Ford's current market share in the Kingdom, and are there plans to increase it in the near future?

A: Ford currently ranks as the fifth-largest automaker in the Kingdom, reflecting its solid market position. With sales expected to double in 2024 compared to 2022, Ford's strong performance highlights its leadership in the Saudi automotive sector. This success persists despite new competitors entering the market, thanks to Ford's enduring presence, customer trust, and commitment to quality.

Q: How are rising metal prices and the semiconductor shortage affecting your production costs? Do you anticipate price increases in the Saudi market as a result?

A: The global rise in metal prices and the semiconductor shortage have undoubtedly impacted production costs across the automotive industry. At Ford, we continuously evaluate these cost challenges, focusing on maintaining value and quality for our customers.

Q: Why do Ford's prices vary between the Saudi market and other global markets? Are there specific local factors influencing prices in the Kingdom?

A: Our dealers in Saudi Arabia, as in other markets, set prices independently based on local market conditions, which may lead to some regional price variations.

Q: What is your vision for the future of electric vehicle (EV) production and sales in Saudi Arabia? Do you have plans to expand your EV lineup in the Kingdom?

A: The EV market in Saudi Arabia is growing rapidly, driven largely by Vision 2030, which aims to diversify the economy beyond its traditional reliance on hydrocarbons. A key target of Vision 2030 is to ensure that 30% of vehicles in Riyadh are electric by 2030.

To support this ambitious goal, the Kingdom has invested significantly in enhancing its position within the global EV supply chain, developing local manufacturing, and attracting foreign investments. The government is also focusing on infrastructure development, such as EV charging stations, to encourage adoption. Through these efforts, Saudi Arabia aspires to become a regional hub for eco-friendly vehicles and advanced automotive technologies.

Ford is committed to supporting the Kingdom's growth journey. Extensive research on consumer readiness for EVs in Saudi Arabia reveals growing interest, with 40% of surveyed Saudi consumers expressing a desire to purchase an EV within the next 12 months, and 81% reporting improved perceptions of EVs over the past year. Many drivers now view EVs as stylish, enjoyable to drive, and technologically advanced, indicating a positive shift in public perception.

As a vital market for Ford in the Middle East, we are excited to contribute to Saudi Arabia's EV adoption journey. We plan to expand our EV lineup to offer a variety of vehicles, from commercial trucks to mid- and full-size pickup trucks and long-range SUVs. Our goal is to reduce carbon emissions over time and provide consumers with a wide range of vehicles to suit their diverse lifestyles.

Q: What are your strategic plans for expansion in Saudi Arabia? Does Ford intend to partner with local companies to strengthen its presence in the Saudi market?

A: Ford has a strong presence in Saudi Arabia through its local office. Recent appointments, including Amit Shetty and Talal Al Amri, reinforce the company's commitment to the Kingdom.

Our strategic plans currently focus on expanding our offerings of internal combustion engine (ICE) vehicles and enhancing our EV lineup, along with significant growth in the commercial vehicle sector, where we are outperforming competitors. We are already seeing substantial increases in sales of our commercial vehicle lineup, including models like the Transit, Super Duty, and Ranger.

Additionally, Ford remains open to exploring potential partnerships with local institutions and the Saudi government to align closely with Vision 2030 and deliver exceptional value to our customers.

Q: How do you evaluate Saudi Arabia's strategic push toward automotive manufacturing? Is Ford considering establishing manufacturing projects in the Kingdom to align with and support this emerging trend?

A: Saudi Arabia's commitment to localizing the automotive sector is a crucial element of its Vision 2030 goals. The initiatives under this vision emphasize sustainability and electrification, encouraging the development of EVs and advanced manufacturing capabilities.

The Kingdom's focus on attracting investments reflects a clear strategy to boost local production, create jobs, and develop a skilled workforce. In line with this vision, Ford remains committed to continuously assessing and seizing opportunities as they arise.

Q: What upcoming projects does Ford have in Saudi Arabia? Are there plans to introduce new technologies or products tailored to the local market's needs?

A: Ford has an exciting lineup of upcoming projects in Saudi Arabia designed to meet local market needs. Earlier this year, we introduced the all-new Lincoln Nautilus and Ford Mustang, along with the Ford Taurus Hybrid, Ford Explorer, and the new Ford F-150, offering our customers exceptional experiences.

Looking ahead, we are preparing to launch the Lincoln Aviator, followed by Ford’s first highly anticipated electric vehicle in the Kingdom, the Mustang Mach-E, as well as the hybrid version of the Territory, set to debut next year.

Every Ford vehicle undergoes rigorous testing by our engineering team to ensure optimal performance, reliability, and design tailored to meet regional conditions.