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Škoda’s Roadmap to Growth and Innovation in the Middle East

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front-angle action shot of a skoda scala and a skoda kamiq driven on the road
Exclusive Interview with Lukas Honzak, Managing Director at Škoda Middle East

What specific strategies have contributed to the 10% sales growth in the Middle East, and how do you plan to sustain this momentum?

Škoda’s 10% sales growth in the Middle East has been driven by a combination of its diverse product portfolio and nearly 130 years of European expertise, delivering quality and reliability that customers trust. From compact sedans to versatile SUVs, Škoda offers vehicles that cater to a broad range of demographics, ensuring there’s something for everyone. Furthermore, Škoda’s value-for-money proposition and competitive pricing have been crucial in attracting new customers and driving sales across the region.

In addition to its strong product line-up, Škoda has developed robust partnerships with local dealers, expanding its dealer network to improve accessibility and brand presence. By collaborating closely with partners and integrating Škoda’s core values, the company has achieved significant milestones, including the launch of a state-of-the-art, digital-first showroom in Kuwait. This expansion underscores Škoda’s strategic focus on the Middle East as a key region for growth.

The success has also been strengthened by ongoing support from Škoda’s global headquarters, which has provided strategic guidance and resources to ensure smooth operations and alignment with global standards. Recognising the Middle East as a high-potential market, Škoda remains committed to expanding the brand’s presence in the region, positioning it as a key area for long-term investment and growth.

Are there any upcoming model launches, facelifts, or generational changes planned for Škoda vehicles? How do these future releases align with the brand’s strategy for the Middle East?

Yes, Škoda has several exciting model launches and facelifts planned. In the final quarter of 2024, we will introduce refreshed versions of the Kamiq, Scala, and Karoq. At the beginning of 2025, we will launch our hero and top-selling model, the all-new Kodiaq, which has been a tremendous success in Europe, as well as the completely new Superb, our flagship limousine. Additionally, the Octavia, our best-selling model globally, will also receive a significant facelift.

2025 will be a remarkable year for Škoda Middle East, with a completely refreshed portfolio, showcasing new cars in new showrooms with our new corporate identity (CI). This is truly a unique moment for the brand, and we’re excited to present this new lineup to the region, where it’s bound to attract a lot of attention.

Furthermore, we are in discussions with Škoda HQ to bring additional new models to the region very soon, and we’re eager to share more details shortly. This sets 2025 up as a milestone year, with innovative products and expanded offerings that align with Škoda’s strategy to meet the evolving needs of customers in the Middle East.

Can you provide details on any new partnerships or business ventures Škoda is planning or has already secured in the Middle East? Are there specific markets or regions within the Middle East where these new collaborations or expansions are planned?

We are proud to have recently announced a key partnership with L’Étape Dubai by Tour de France. L’Étape Dubai is an amateur cycling event that brings the same quality and experience of the official Tour de France to the Middle East for the first time in February 2025.

Cycling is deeply embedded in Škoda’s brand identity, reflecting our commitment to promoting active lifestyles and community engagement. Our “We Love Cycling” platform exemplifies this ethos, and L’Étape Dubai by Tour de France is a significant part of this initiative. Škoda’s collaboration with the Dubai Sports Council for L’Étape highlights the importance of strategic partnerships with government bodies. This collaboration not only amplifies the event’s reach but also reinforces Škoda’s commitment to promoting health and fitness in the Middle East.

With the growing popularity of cycling in the region, we plan to expand our “We Love Cycling” platform across the Middle East, bringing cycling and sustainable mobility closer to our audience.

Could you share more about the most prominent dealerships and service centres in the UAE? How have they impacted, sales figures, customer experience and service accessibility?

Škoda’s prominent dealerships in the UAE, represented by Ali & Sons in Dubai, Abu Dhabi, and Al Ain, have played a crucial role in boosting sales and enhancing the overall customer experience. We offer customers a seamless buying process and top-tier after-sales support. This customer-centric approach has been a key contributor to Škoda’s sales growth in the region, with the UAE contributing over 56% of the overall Middle East sales year-to-date. The UAE has also experienced an average year-on-year sales growth of 46% since 2021, reflecting high levels of customer satisfaction and convenience.

Looking ahead, 2025 will see major investments in additional Škoda facilities in the UAE, underlining Ali & Sons’ long-term commitment to the brand’s growth. Early 2025 will witness the opening of a brand-new Škoda showroom in Abu Dhabi. In addition to new car sales, Ali & Sons will introduce the Certified Pre-Owned programme, Škoda Plus, in Q1 2025 to cater to a new audience, offering quality pre-owned vehicles with a risk-free experience.

Later in 2025, a state-of-the-art service centre and body shop dedicated to Škoda will open in Al Quoz, Dubai, as the largest Škoda service facility in the region. Additionally, Škoda will continue to bring its products closer to customers through roadshows, motor shows, and pop-up displays in strategic public locations, such as Mirdif City Centre and Dubai Festival City from 18th September to 18th October, where customers can experience our latest models and take test drives.

Furthermore, 2025 marks a significant year for Škoda’s regional growth as we expand into new markets, primarily to Oman and Saudi Arabia, completing our coverage of the entire GCC market. This expansion, along with our refreshed product portfolio and new facilities, will solidify Škoda’s presence across the Middle East, helping us fulfil our commitment to the region.

Could you provide insight into Škoda’s sales development in the Middle East and UAE, and the targets the brand aims to achieve by the end of the year?

Škoda’s market share in the Middle East has grown steadily, with a 10% increase in sales to date in 2024, driven by strong demand in key markets like the UAE and Kuwait. The Kodiaq and Kushaq models have been significant contributors to this success, reflecting the strength of our SUV lineup.

Looking ahead, 2025 is set to be a transformative year for Škoda, as we introduce a completely refreshed product portfolio, including the all-new Kodiaq and Superb, alongside major facelifts for the Octavia and Karoq. With these new models and our expansion into new markets, particularly Saudi Arabia, we expect to further boost our sales figures. While this year has been one of stabilisation and preparation for future growth, our refreshed portfolio and new market entries will position us for even greater success in 2025 and beyond.

Our focus on enhancing customer accessibility and service quality will remain central to our strategy as we aim to solidify our position in the Middle East with our broad range of SUVs and saloons.

Automotive

Automechanika Shanghai 2026: A platform connecting Middle East ambition with global automotive innovation

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Automechanika Shanghai 2026 will bring together the global automotive supply chain from 2 to 5 December at the National Exhibition and Convention Center in Shanghai, offering businesses access to parts, components, equipment and aftermarket services. As the Middle East region advances automotive manufacturing and electric mobility, the exhibition offers an ideal platform to support sourcing and industry collaboration.

The 21st edition of the fair will occupy 390,000 sqm across 16 halls and the mezzanine floor, hosting around 7,600 global exhibitors. The fair welcomed 253,691 visitors from 190 countries and regions in its previous edition (2025). More than an exhibition, Automechanika Shanghai presents itself as a unified platform, integrating the show floor with a robust programme of conferences, workshops and 100 fringe events.

Technologies and innovations take centre stage
Covering the entire supply chain from manufacturing to the aftermarket, upgrades in parts & components, electrics & electronics, accessories, diagnostics, body and paint, tyres, and wheels showcase advanced components, smart tyres, lightweight wheels, maintenance for new energy vehicles, infotainment electronics, and high-performance enhancements for both passenger and commercial vehicles.

The Parts & Components and Electrics & Electronics sector, the largest at the fair with over 4,200 exhibitors, showcases advancements in materials, lightweight design, intelligent technologies, and electrification for ICE, EV, and hybrid vehicles, covering chassis, powertrain, new drive technologies, thermal management, standard parts, and more.

Driven by the rapid transformation of electrification, nearly half of Automechanika Shanghai’s exhibitors focus on new energy products and services. The New Energy & Connectivity sector grows 20%, featuring 700 exhibitors in electric powertrains, autonomous driving, AI, charging and battery swapping, intelligent chassis, and thermal management, alongside hybrid, fuel cell, and hydrogen solutions enhancing performance and safety. The newly established Global Quality Alliance Hub, centered on the IATF 16949 standard, unites standards bodies, trainers, certifiers, and regulators to strengthen quality management.

Fringe events guide insights into global trends

More than 480 global experts will participate in the 2026 conference and events programme.

The programme comprises five complementary pillars. Flagship events will address industry trends, policy and innovation, while the Tech series will focus on emerging technologies and R&D collaboration. The Talent series will connect companies with skilled professionals through educational initiatives.

Connect will facilitate collaboration between carmakers and suppliers throughout the year. The Automotive Supply-Demand Matching Series and Global Collective Forum will bring manufacturers, suppliers and technology companies together to discuss supply-chain development, investment and international partnerships.

Automotive+ will explore the convergence of artificial intelligence, vehicle-road-cloud systems, new energy solutions, hardware-software integration and robotics. The Innovation4Mobility platform will provide a dedicated showcase for these technologies and their applications across the automotive industry.

Middle East market developments create sourcing opportunities

The GCC’s new light vehicle market continues to grow, expanding the regional vehicle base and driving demand for parts distribution, maintenance equipment and aftermarket services. Electric vehicle adoption is also rising across the region, bringing further servicing requirements for diagnostics, charging systems and new energy powertrains. In addition, manufacturing and trade partnerships continue to develop across the Middle East. These developments underline growing opportunities for Middle Eastern businesses to source parts, equipment and technologies through international platforms such as Automechanika Shanghai.

Automotive manufacturing has rapidly developed across Asia as well, with many countries becoming key manufacturing hubs. These manufacturing centers not only fulfill domestic demand but also produce complete built-up (CBU) vehicles and parts for export across the region and beyond. China is a dominant player, leading vehicle production and exports with a significant volume that translates to tens of billions of dollars in trade value. For example, Chinese automakers shipped approximately $117 billion worth of vehicles globally, with a notable emphasis on new energy vehicles. Other major Asian automotive exporters including Thailand, India, Japan, and South Korea collectively contribute substantial export values, underscoring the integrated and competitive nature of the region’s automotive industry.

These developments highlight opportunities for cooperation between Middle Eastern businesses and international suppliers across automotive manufacturing, parts distribution and aftermarket services.

An ecosystem that needs the aftermarket to keep running

Automechanika Shanghai, Asia’s largest automotive fair of its kind, with product categories spanning across manufacturing and aftermarket, also attracts strong participation from across Asian countries and across the world. In a market dominated by an aging, largely combustion-powered fleet, this aftermarket focus remains highly relevant even as EV adoption grows. While traditional parts are still in high demand, continuous innovation is essential to keep pace with a vehicle base that is both aging and evolving. This reinforces Automechanika Shanghai’s position as the Asia’s largest in serving this sector, at a time when maintaining reliable and affordable vehicle operation is a key priority throughout the region.

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Mazal Launches First-of-its-kind Escrow-Protected Marketplace for Premium Number Plates Trading

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Mazal has officially launched its new digital platform, introducing what it describes as the UAE’s first escrow-protected ecosystem dedicated to the buying, selling and trading of premium Dubai number plates.

The platform was unveiled at an exclusive launch event held at a cutting-edge digital and vibrant event venue, bringing together industry stakeholders, collectors, investors and enthusiasts to mark a new chapter in Dubai’s premium number plate market.

The event also featured a live auction – the first of its kind taking place in the UAE for secondary number plates. Mazal premium number plates and premium Mazal IDs were also auctioned, lifting the energy of the evening to an all-time high.

Built around the principles of trust, transparency and security, Mazal aims to bring greater structure and efficiency to a market that has traditionally relied on informal transactions, independent brokers and manual ownership transfers. The platform provides users with a centralised environment where number plates are secured under Mazal’s custody before being made available for trading

Commenting on the occasion, Abdulla Al Meer, Co-Founder & Chairman, Mazal, said: “Building a credible market requires more than technology; it requires trust, governance and a clear framework around ownership and transactions. With my experience in Dubai’s number plate industry and its regulatory landscape, I have seen first-hand the importance of creating processes that protect both the asset and the people involved in a transaction. Mazal brings these principles together through verified ownership, secure payments and a transparent transaction journey, setting a stronger standard for the market.”

Adding to this, Ahmad Al Nasser, Co-Founder & CEO, Mazal, said: “Dubai’s premium number plate market has developed into a sophisticated trading environment, with plates increasingly recognised for their scarcity, value and long-term potential. Having spent years close to the commercial side of this industry, I have seen the need for a platform that can bring greater efficiency, transparency and accessibility to the way these assets are traded. Mazal is designed to provide that structure while preserving what makes this market unique.”

Mazal enables users to browse and list premium number plates, participate in live auctions and complete transactions through a protected escrow process. Under its transaction framework, buyers’ funds are securely held from the moment a deal is agreed and are released only once the official ownership transfer has been confirmed.

To further support secure and convenient transactions, Mazal has partnered with Transguard to facilitate reliable cash collection services for clients who choose to make payments through this method. The partnership adds an additional layer of convenience for customers while supporting the platform’s broader focus on secure and transparent transactions.

The platform also introduces data-driven valuations, with premium plates assessed against factors including transaction history, market demand, rarity and number patterns. This is designed to give buyers and sellers greater visibility into the value of an asset and reduce the uncertainty traditionally associated with premium number plate transactions.

Alongside its technology and transaction infrastructure, Mazal is investing in building a team that reflects the UAE’s talent and leadership ambitions. Through its partnership with TASC, the company is sourcing and recruiting top Emirati talent to support its growth and contribute to the development of a locally rooted business with regional ambitions.

Mazal’s launch comes at a time when premium number plates are increasingly being viewed as collectible and investment assets. According to the company’s market assessment, Dubai’s premium number plate market records approximately 55,000 transactions annually, with the market growing by around 20%. Premium plates can command significant values, with the highest recorded sale cited at AED 55 million and the premium plate market having recorded a value of AED 1.7 billion over three years.

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Inside the Strategy Shaping the Future of Premium Mobility

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Exclusive Interview With Nasser Saeed Ahmed Nasser Lootah Founder & Chairman, N S Lootah Group

How are new consumer preferences in the UAE and the GCC’s established premium motorcycle market influencing N S Lootah Motors’ brand positioning strategies?

“Customers in the UAE and across the GCC are extremely well informed. They travel, they know international brands, and they compare technology, performance, design and service before making a decision.

For us, premium cannot simply mean expensive. There has to be something genuinely distinctive behind the product — whether that is the engineering, technology, design or the overall ownership experience.

That is one of the reasons SOUO interested us. The S2000 brings something genuinely different to the market, including the world’s first production Flat-8 motorcycle engine. But specifications alone are not enough. Our responsibility is to introduce the brand properly, build confidence around it and provide the level of service and support that customers in this market expect.”

Are there plans for N S Lootah Motors to diversify into commercial mobility solutions, or will the company remain focused on premium, lifestyle and luxury segments?

“At this stage, our focus is on building N S Lootah Motors around distinctive automotive and mobility opportunities where we believe we can bring something meaningful to the UAE market. We are open-minded about the future. If we see an opportunity in commercial mobility or another segment that has strong potential and fits our capabilities, we will certainly consider it.

But expansion must have a purpose. We don’t want to enter a category simply because it is growing. There must be a strong product, a clear market opportunity and a business where we believe N S Lootah Motors can genuinely add value. If we see an opportunity in commercial or another area of mobility that makes sense, and where we believe we can genuinely add value, we will consider it. But we don’t want to enter categories simply for the sake of expansion.”

What specific factors will decide if a new brand or mobility business becomes part of N S Lootah Motors for its automobile offerings?

“The first thing is always the product. It has to offer quality, strong engineering and a clear reason for the customer to choose it. Then we look very carefully at the company behind the product. We want partners who are serious about the UAE, who understand that building a brand takes time, and who are prepared to invest in the market together with us. After-sales support is equally important. We look at spare parts, technical training, warranty, product development, marketing support and the future product pipeline.

Ultimately, we ask ourselves whether this is something we can build into a sustainable long-term business. We are not interested in simply adding brands to our portfolio. We want partnerships that we believe can grow with us.”

What evaluation standards and market strategies should the team follow when selecting and discussing exclusive UAE distribution rights for upcoming OEM partners?

“Exclusivity by itself is not enough. What matters is what we can build with that exclusivity. Before taking on an OEM, we need to understand the product, the customer, the size of the opportunity and where the brand can realistically sit in the UAE market. We also need to understand what the manufacturer expects from us and what level of support they are prepared to provide.

I want the team to look beyond initial sales numbers. Product quality, pricing, spare-parts availability, warranty, technical training, marketing support and the future product pipeline are all important.

Most importantly, there has to be trust. A distributor and an OEM should operate as partners. If we are investing our name, our people and our resources into developing a brand in the UAE, we need a partner who shares the same long-term commitment.”

Currently, N S Lootah Motors has a special flagship showroom in Dubai that handles sales, test drives and brand interaction. What is the brand’s plan for expanding its retail presence in other MEA regions?

“Dubai is our starting point, and our priority is to establish the business properly here first. The showroom gives customers the opportunity to see the motorcycles, experience the brand and take a test ride. Just as importantly, it gives us direct contact with customers and allows us to understand what the market really wants.

From there, expansion should follow genuine demand. Our ambition is regional, but we want that growth to be disciplined. We would rather establish one market properly and then move into the next with the right partner, infrastructure and customer support in place.”

Are there any differences between the expectations of the brand you represent and the realities of selling motorcycles in the UAE market?

“Of course. Every international brand enters a market with certain expectations, but every market has its own character. The UAE customer expects a very high standard — not only from the product, but from the entire experience. Customers expect quick responses, knowledgeable salespeople, reliable after-sales service and easy access to spare parts.

Motorcycles are also very community-driven here. Riding groups, events, weekend rides and relationships between riders are an important part of the market. Our role as the local distributor is to understand both sides. We help the manufacturer understand the UAE customer, while making sure the brand is communicated and represented properly in the local market. That bridge is where a strong distributor really adds value.”

How do you balance portfolio expansion with the need to develop sufficient expertise, infrastructure and after-sales capabilities for each business you take on?

“Growth is important, but uncontrolled growth can damage a business. Every automotive brand we take on requires investment in people, technical knowledge, spare parts, diagnostics, training and after-sales support. You cannot simply sign a new brand and expect the business to develop by itself. That is why we are focused on building capability alongside the portfolio. As we grow, our infrastructure and our people have to grow with us.

For me, the customer experience is the real measure. When somebody buys a premium motorcycle from N S Lootah Motors, they are trusting us not only with the sale but with the entire ownership journey. I would rather grow at a pace where we can maintain that standard than expand quickly and compromise the experience.”

What are the most difficult decisions you must make as a new automotive venture — where to invest, what to prioritise, how fast to grow the operation, or how to respond to market signals?

“I think one of the most difficult decisions is knowing when to move quickly and when to be patient. In automotive, you can invest very quickly — in facilities, inventory, people, marketing and expansion. But every investment has to follow a clear strategy. At the same time, the market moves quickly, so you cannot be too cautious. You have to listen to the customer, listen to your team, understand the numbers and stay close to what is happening in the market.

We are still building N S Lootah Motors, and our objective is not to become the biggest automotive company overnight. We want to build a strong, respected business with the right foundations — one that customers and international partners can trust and that will remain relevant for many years.

We are not trying to become the biggest automotive company overnight. We are trying to build a business that will still be relevant many years from now.”       

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