Automotive
Škoda’s Roadmap to Growth and Innovation in the Middle East
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
Inside XPENG Brand Night: AI Mobility Lands Centre Stage in Dubai
On 2 November 2026, XPENG and Gulf Star Motors put Physical AI, flagship SUVs and design culture in front of UAE guests.
Here is what the Brand Night and New Product Launch felt like from the floor.
Dubai has seen plenty of smart EV launches. Fewer evenings try to stage the whole idea of AI mobility in one room: cars, software, design language and a glimpse of what comes after the road.
On 2 November 2026, that is what XPENG Brand Night and New Product Launch set out to do, hosted with Gulf Star Motors, a subsidiary of Ali and Sons and the official distributor of XPENG in the UAE.
The brief was clear from the moment the programme began. This was not only a reveal of two SUVs. It was a statement that XPENG wants UAE buyers to see the brand as a technology company that happens to make cars, and that Dubai remains the beachhead for that story.
Two Flagships, One UAE Brief
The headline products were the G9L and the GX, both presented for UAE customers. XPENG positions the G9L as its Next-Gen AI Flagship SUV, offered with battery-electric and Kunpeng Super Range Extender powertrains. Official materials cite an overall length of 5,120 mm and a wheelbase of 3,100 mm, with an AI cockpit and advanced driver-assistance technologies aimed at local buyers who want flagship presence without giving up software-led features.
The GX, XPENG’s full-size six-seat flagship SUV, was shown with the same dual choice: battery-electric and Kunpeng Super Range Extender. XPENG quotes a pure-electric range of up to 430 km and a combined range of up to 1,585 km for the Super Range Extender configuration on an 800V architecture, a pairing that speaks directly to UAE driving: long distances, summer loads, and the need for range confidence beyond the city.
The GX also carries the computing story that XPENG wants associated with its upper models: Turing AI computing of up to 3,000 TOPS and the VLA 2.0 intelligent-driving system, framed here as advanced driver assistance and an AI-powered cabin rather than science fiction. On the night, that distinction mattered. Guests were not asked to believe in a driverless future in the abstract. They were asked to look at hardware and interfaces that already sit in production-bound products.
Beyond the Unveil
The programme deliberately stretched past a spotlight moment. Guests experienced the GX in person, a useful reminder that the model has already drawn strong UAE interest, with more than 500 confirmed orders reported ahead of launch. In a market that can be sceptical of new EV brands until the ownership story feels solid, that pre-launch demand figure is part of the narrative as much as any stage lighting.
Workshops on XPENG’s Vital Flow design language sat alongside the metal. Vital Flow, inspired by Design VP JuanMa Lopez, formerly Head of Exterior Design at Ferrari, emphasises flowing, muscular surfaces that look alive even when a vehicle is standing still. For a UAE audience used to premium sheet-metal theatre, the pitch was less about ornament and more about motion held in stillness, a design line that tries to make technology feel intentional rather than bolted on.
There was also a session on XPENG’s flying car programme, the piece of the evening that most clearly connects Brand Night to the brand’s Physical AI agenda of intelligent vehicles and advanced air mobility. It is the kind of slot that can tip into hype. On this programme it was presented as part of a wider stack, not as a separate circus act.
Physical AI, Explained for Dubai
Dubai Brand Night brings XPENG’s ‘Physical AI for All’ vision to the region, with the GX and G9L showcasing how intelligent mobility and Kunpeng Range Extender technology can meet the demands of long-distance driving in the region’s challenging climate..
Dr. Brian Gu, Vice Chairman and President, XPENG

That climate line is not decorative copy in the UAE. Heat, highway pace and uneven charging density still shape purchase decisions, which is why range-extender messaging sits so comfortably next to pure-electric talk here.
The phrase Physical AI can sound abstract until you hear it next to concrete products. On Brand Night it meant AI cars with serious onboard compute, a design system with a named chief, and air-mobility ambitions shown in the same programme as showroom SUVs. Whether every guest left fluent in the jargon is beside the point. The structure of the evening forced the association: software, design and future mobility were not side rooms. They were the spine.
A Local Network Behind the Night
XPENG did not arrive in Dubai as a stranger. The UAE was XPENG’s first market in the GCC. The company announced its UAE partnership in February 2024 and opened the market on 19 October 2024 with the G6 and G9. Gulf Star Motors has since established showrooms on Sheikh Zayed Road in Dubai and in Abu Dhabi, the retail footprint that makes a Brand Night feel like a continuation rather than a cold start.
After-sales has been part of that story too. XPENG’s first Middle East spare-parts warehouse in Jebel Ali Free Zone was inaugurated on 15 October 2025.
XPENG’s rapid growth across the Middle East is being supported by a robust logistics foundation, with the Dubai hub enabling timely parts supply and faster response to local customer needs — an important factor in building long-term confidence in the brand.
Ken Wang, General Manager and Managing Director, XPENG Middle East, Africa and Caucasia
Why the UAE Timing Fits
The Brand Night and New Product Launch arrives as the UAE continues to lead the GCC on electric-mobility readiness. According to Arthur D. Little’s GEMRIX 2026 as reported by WAM, the UAE ranked first among GCC markets and 22nd globally, with electric vehicles accounting for around 9 percent of new vehicle sales in 2025, about 2,800 charging points nationwide, and a national ambition for electric and hybrid vehicles to make up 50 percent of vehicles on its roads by 2050.
Dubai aims for electric vehicles to represent more than 15 percent of its fleet by 2030. The Brand Night and New Product Launch sits within that national drive under the UAE Net Zero 2050 Strategy.
Those numbers do not make any single launch inevitable. They do explain why a night built around AI mobility, long-range electrified SUVs and after-sales confidence can land cleanly here. Net Zero 2050 is policy context. Brand Night was product and persuasion.
What Stayed With Us
Leave the slogans aside and the evening still had a practical shape. Two SUVs for UAE customers. A design language with a named lead. A flying-car session that kept Physical AI from sounding like a brochure heading alone. A distributor network already on Sheikh Zayed Road and in Abu Dhabi, with a JAFZA parts hub behind it.
Through Gulf Star Motors, XPENG Brand Night and New Product Launch strengthens the brand’s offer of AI-enabled, long-range electrified SUVs for customers across the UAE. The cars will still have to win in traffic, heat and service bays. On 2 November, the brand at least made sure the UAE saw the wider system it wants those cars to sit inside.
Automotive
Chinese Cars Are Reshaping the GCC Market, but Resale Value Could Be the Next Battleground
The GCC automotive market is undergoing a significant transformation. Chinese manufacturers are expanding their presence, established brands are navigating supply chain disruptions, and consumers are reassessing the economics of vehicle ownership.

At Keyloop Fusion Live Dubai, Srijith KN, spoke with Nour Abu-Safe, Head of Insights & Analytics at AutoData Middle East, about the changing competitive landscape, the impact of regional logistics challenges, and the opportunities emerging for automotive retailers.
Drawing on market intelligence, vehicle valuation data and industry research, she explains why technology alone may not guarantee long-term customer loyalty, why hybrids currently offer stronger residual value, and why the next major opportunity for dealerships could lie in pre-owned Chinese SUVs.
How are disruptions around the Strait of Hormuz affecting established automotive brands, and could the market changes become permanent?
Initially, many believed the disruption would be temporary. However, the data is beginning to show that market conditions are solidifying and businesses are adapting.
Traditional manufacturers, particularly Japanese brands such as Toyota, Nissan and Lexus, are experiencing challenges getting inventory into the region.
Chinese manufacturers have been more agile because several operate their own vehicle carrier fleets and logistics networks. This has allowed them to establish alternative routes into the GCC.
We have seen a 90% reduction in Japanese vehicle imports into the region, linked to the disruption around the Strait of Hormuz.
Alternative routes through ports outside the Gulf and via the Red Sea and Saudi Arabia are increasingly being used. However, these arrangements are creating delays, with vehicles now taking approximately six to eight weeks to reach showrooms.
The important development is that the market is adapting. Some of the alternative logistics routes established during this period could remain in use for years to come.
Are Chinese automotive brands attracting an entirely new generation of buyers, or are they winning customers away from established manufacturers?
It is a combination of both.
Younger consumers, particularly those between 19 and 30, are increasingly attracted to Chinese vehicles because of their styling, advanced technology, competitive pricing and safety features.
For younger families, especially those entering parenthood, these features can be important purchasing considerations.
Chinese vehicles also tend to offer attractive warranty and servicing packages, making them appealing to consumers who want to reduce their overall ownership costs.
Older buyers, particularly those in their 40s and 50s, generally demonstrate stronger loyalty towards established manufacturers and premium brands.
However, Chinese manufacturers are increasingly entering the premium segment as well, and we are beginning to see them capture some of that market share.
These demographic observations are also supported by consumer research, including studies published by YouGov, which we reference in our market analysis.
Chinese vehicles are becoming increasingly sophisticated. But can manufacturers sustain customer loyalty when technology evolves so quickly?
This is one of the most interesting challenges facing Chinese manufacturers.
Advanced technology is a powerful selling point. It looks attractive in marketing materials and helps manufacturers differentiate their vehicles.
However, rapid technological advancement also accelerates depreciation.
When a manufacturer introduces a significantly improved model within a short period, previous model-year vehicles can quickly appear outdated. That creates challenges for residual values and the used-car market.
For dealerships, the opportunity is to identify vehicles that offer a balance between modern technology and proven, practical features.
Hybrid vehicles are an interesting example because they combine improved efficiency with familiar internal combustion technology.
A vehicle that balances innovation with long-term usability may be better positioned to retain customers over five to ten years than one that depends primarily on the latest technology.
Chinese manufacturers are doing many things well, but the next few years will reveal how effectively they manage this challenge.
With affordability becoming increasingly important, how are vehicle financing and leasing models evolving across the GCC?
Vehicle demand remains present, and manufacturers have found ways to maintain supply despite the disruptions.
However, we could see greater pressure on consumer finances over the coming year.
That creates opportunities for financing and leasing providers.
Financing offers with zero down payment are becoming particularly relevant for buyers who may not have sufficient funds available for a substantial upfront payment.
On the leasing side, some operators are reporting demand increases of approximately 30% to 35%.
Consumers still need vehicles for everyday mobility, but some are becoming more reluctant to take on the financial commitment and risk associated with outright ownership.
Leasing offers an alternative that can address those concerns.
What is the biggest opportunity dealerships may be overlooking today that could become particularly important in 2027?
Used Chinese SUVs.
SUVs represent the largest vehicle body-type segment in the region, and the growing population of Chinese SUVs creates a significant opportunity for dealerships.
The first owner typically absorbs much of the vehicle’s depreciation during the initial two to three years. In some cases, that depreciation could be around 50%.
For dealerships, this creates an opportunity to develop certified pre-owned programmes around relatively young Chinese SUVs.
A three-year-old vehicle may still be in excellent condition and covered by its original warranty or service package.
If dealerships can price these vehicles correctly, they can attract buyers who cannot afford a brand-new SUV but still want a modern, well-equipped vehicle.
This could become an important growth segment for the automotive retail industry.
For consumers considering a vehicle purchase today, which offers the strongest proposition: petrol, hybrid, electric or a competitively priced Chinese vehicle?
There is no single answer because the decision depends on individual priorities.
However, when we compare petrol, hybrid and electric vehicles, our current data indicates that hybrids retain their value best.
They offer fuel efficiency while maintaining the familiarity and convenience of an internal combustion engine.
For buyers concerned about long-term value, that makes hybrids particularly attractive.
Chinese manufacturers, meanwhile, are becoming increasingly competitive on design, pricing and technology.
Vehicles such as the ROX 01 and Jetour G700 demonstrate how Chinese brands are entering segments traditionally dominated by established SUVs such as the Toyota Land Cruiser and Nissan Patrol.
The competitive landscape is changing considerably.
One particularly interesting insight from our latest data is that 48% of the new 2027-model vehicles arriving in the UAE are Chinese brands.
That tells us how aggressively these manufacturers are planning their product introductions, expanding supply and positioning themselves to attract both new and existing automotive customers.
The next few years will be particularly interesting as these changes reshape the balance between established manufacturers and emerging competitors.
Automotive
Dubai Ride-Hailing App Zed Strengthens Leadership with Appointment of Shobhit Singhal to Shape Its Future
Zed, the Dubai-born ride-hailing app and part of Al Ghurair Mobility, has appointed Shobhit Singhal, former Chief Operating Officer of Southeast Asian super app Gojek, to lead its business and strategic direction. Built in Dubai and designed around the unique mobility needs of those who live and work in the city, Zed is entering a new period of development, with a renewed focus on strengthening its position in the Dubai mobility sector, advancing homegrown technology and building a scalable platform for the region.
Singhal brings extensive experience in leading technology-driven businesses across international markets. As Chief Operating Officer of Gojek, he oversaw the company’s mobility, food delivery and consumer logistics operations, having previously led cross-functional teams across Southeast Asia. His earlier career includes leadership roles at Apple in Singapore, and as a consultant with Bain & Company, specialising in technology services and telecommunications.
In his new role, Singhal will focus on enhancing the customer experience and driving innovation across Dubai’s mobility ecosystem. His priorities will centre on deploying scalable technology to build a smarter, more forward-looking ride-hailing experience for customers.
Shobhit Singhal, Head of Business at Zed, said: “Dubai is one of the world’s most dynamic markets for innovation, and there is a real opportunity to build an app designed around the unique needs of the people who live here. Our ambition is to make Zed the go-to app for rides across Dubai, whether it’s an everyday taxi journey or a premium experience. My priority is to turn that ambition into reality by delivering a reliable, seamless service that customers choose time and again. By getting the fundamentals right in Dubai, we can build a homegrown success story with the potential to grow across the wider region.”
Badr Al Ghurair, CEO of Al Ghurair Mobility commented: “Shobhit’s appointment represents an important step in Zed’s growth journey. At Al Ghurair Mobility, we see Zed as a key part of our vision for the future of mobility in Dubai. His experience in scaling complex mobility businesses, combined
with his understanding of technology and operations, brings valuable expertise to the company. We have a clear vision for Zed as a homegrown platform that can deliver meaningful value to customers and partners alike. With Shobhit’s leadership, our focus is on turning that vision into consistent execution and building a strong foundation for sustainable growth.”
With its roots in Dubai, Zed is focused on developing homegrown mobility technology tailored to the needs of Dubai residents. By strengthening its operations and building on its understanding of the local market, the company aims to establish a scalable platform.
Singhal holds an MBA from Northwestern University’s Kellogg School of Management and a Bachelor of Technology in Engineering from the Indian Institute of Technology Delhi.
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