Nissan’s Thierry Sabbagh on The Arc, electrification and all-new Patrol

Here, Thierry Sabbagh, DVP and president – Middle East, Saudi Arabia & CIS – Nissan, INFINITI, discusses the brand’s impressive growth in the region, driven by a diverse product lineup, robust SUV demand, and customer-centric innovations.

Sabbagh also sheds light on Nissan’s sustainability initiatives, future focus on electrification, and how the global business plan – The Arc – is poised to shape the Middle East market over the coming years.

Nissan recently had the global premiere of the all-new Nissan Patrol in Abu Dhabi. Tell us about it.

Nissan’s decision to host the ‘World Premiere’ of the all-new Nissan Patrol in the capital of the UAE is a testament to the region’s profound connection to this iconic SUV and its seven-decade legacy.

In the Middle East, the Patrol has earned its reputation as more than just a vehicle — it’s a cultural symbol, rooted in tradition yet crafted for the future.

Bookings are now open across our partner network, with deliveries set to begin in early November.

The company reported a 6 per cent increase in sales across the Middle East in FY2023. Can you elaborate on the key factors driving this growth?

Our sales performance over the past fiscal year (FY23) demonstrated strong growth, and this success can be attributed to three factors that work together: exciting products, customer-centric innovation and a firm commitment to the region.

Our diverse product line-up continues to meet the evolving needs of our customers, driving strong demand across the region. Notably, Nissan’s strategic focus on SUVs and crossovers has delivered a 26 per cent increase in sales in FY23 (April 2023 – March 2024), compared to the same period last year.

Meanwhile, sedans also maintained customer interest, with the beloved Nissan Sunny recording over 20,000 units sold while retaining its top position in the segment.

These achievements would not be possible without our strategic and longstanding partnerships with trusted dealers in the region, who share our commitment to excellence and building long-term brand equity and loyalty.

In a crowded automotive sector, Nissan stands out with its holistic approach to customer journeys, meticulously designed to ensure a seamless experience from discovery to ownership. Customers experience a tailored environment from test drive to customisation, ensuring they feel valued and confident in their purchase decisions.

Our relationship with customers extends beyond the sale; with Nissan Service, customers have a suite of aftersales products and services aimed to offer greater value and convenience. We look forward to continuing this successful journey with our customers, driving innovation and excellence at every turn.

The SUV segment saw a remarkable 26 per cent increase in sales. What do you attribute this success to, and how do you see this segment evolving in the future?

The Nissan SUV lineup in the Middle East is designed to cater to a wide range of customers, each with unique preferences and requirements. Our strategy focuses on offering a variety of models that excel in different areas, ensuring every customer can find a vehicle that suits their lifestyle and budget.

Our sales performance for SUVs in FY23 was led by the Patrol and X-Trail.

The Patrol, with a 9 per cent year-on-year sales increase, remains a standout performer with all-terrain capabilities and advanced features resonating strongly with customers in the region. Meanwhile, the X-Trail’s popularity continues to rise, thanks to its versatile design and cutting-edge technology that appeals to families and adventure seekers alike, resulting in the highest sales increase within our SUV segment for the fiscal year.

Personalisation remains a key trend – with customers seeking tailored vehicles that meet their specific needs. We see sustained interest in special editions like the GCC-exclusive Patrol NISMO and Patrol Super Safari.

Looking ahead, the SUV segment in the Middle East is poised for continued growth. Advanced connectivity and driver assistance features such as NissanConnect and ProPILOT are becoming increasingly important to customers.

There was a notable increase in aftersales, with parts and accessories sales and Nissan Genuine Motor Oil sales showing good growth. How has Nissan managed to achieve such growth, and what initiatives are in place to continue this trend?

Ensuring sustained after-sales growth is crucial as it not only enhances customer satisfaction but also drives brand loyalty and long-term business success – and our strategic initiatives have been instrumental in achieving this.

The introduction of the six-month manufacturer-backed warranty has provided our customers with enhanced peace of mind and confidence in their after-sales purchases. By offering value advantage spare parts, we have also been able to cater to a broader customer base that receives the best value without compromising on quality, which has positively impacted our sales results.

Nissan Genuine Motor Oil is another key initiative that has contributed to our growth. By promoting a product specifically engineered for our vehicles, we have ensured optimal performance and longevity for our customers’ cars. This has not only driven sales of the motor oil itself but has also reinforced the importance of using genuine parts to maintain vehicle health.

To further enhance the customer experience, we are focusing on digitisation of both sales and aftersales operations to ensure a seamless customer journey from discovery to purchase to vehicle maintenance. Our digital platforms such as Nissan Service and Shop@Home which greatly enhance convenience are strong examples of this approach.

As the automotive industry moves towards electrification, what is Nissan’s strategy for electric vehicles in the Middle East market?

Currently, internal combustion engine (ICE) models still make sense from both an owner and business perspective in many markets. However, as natural demand for electrification continues to grow, we stand prepared to meet customer needs on a market-specific basis. Leveraging our extensive experience in EV technology, we aim to introduce electrified vehicles in more markets as they become ready.

The introduction of EVs is a cornerstone of The Arc, Nissan’s global business plan, serving as a precursor to the Nissan Ambition 2030 vision, which underscores our global commitment to electrification.

What are the new technologies or innovations Nissan is focusing on to enhance vehicle performance and customer experience in the region?

Nissan is dedicated to harnessing cutting-edge technologies and innovations to elevate vehicle performance, as well as enhance the overall customer experience.

Shop@Home represents our commitment to meeting modern customer preferences for convenience and efficiency through digitisation. It offers a comprehensive online suite where customers can browse our entire vehicle range, review detailed specifications, and compare models from the comfort of their homes. Nissan Service offers a comprehensive range of maintenance and repair services, allowing customers to seamlessly schedule appointments, order parts and access online support with ease.

Nissan Intelligent Mobility (NIM) technologies is Nissan’s vision for transforming how vehicles are driven, powered and integrated into society. It includes intelligent driving systems like ProPILOT that support autonomous driving tasks such as lane centring and maintaining a safe distance. These technologies extend to automatic emergency braking and blind spot warning, providing confidence and security on the road.

Looking ahead, we will continue to explore and implement new technologies to keep Nissan at the forefront of automotive innovation, consistently delivering exceptional value to our customers.

What steps is Nissan taking to promote sustainability and reduce the environmental impact of its vehicles in the Middle East?

Sustainability is a cornerstone of Nissan’s global mission, where we are dedicated to reducing the environmental impact of our vehicles through innovative technologies and strategic initiatives. Our overarching global goal is to achieve carbon neutrality across our operations and product lifecycle by 2050.

One of our key projects globally is the EV36Zero initiative, which is a GBP1bn project that transforms our Sunderland plant in the UK into a comprehensive EV manufacturing hub. The project integrates three critical components – the production of next-generation all-electric vehicles, the establishment of an advanced Envision-AESC gigafactory for next-generation battery technology and the creation of a renewable energy microgrid. The combination results in a zero-emission facility, underpinning our sustainability goals.

Locally in the Middle East, Nissan is committed to promoting sustainability, prioritising efficiency as a critical element in our product and engine designs, and aiming to meet evolving environmental standards and customer preferences.

Beyond vehicles, Nissan is also investing in renewable energy solutions for our Middle East operations, exemplified by our partnership with ENGIE Solutions GCC to install solar energy systems at our facilities, which will supply 30 per cent of our energy needs with clean power.

What opportunities do you see for Nissan’s growth in the Middle East, particularly in markets like the UAE and Kuwait, where significant sales increases were reported? Can you also shed light on some challenges associated with the ME market?

The Middle East remains a region of opportunity for Nissan, particularly in key markets such as the UAE and Kuwait, where we have seen notable growth. As mentioned, in FY23, sales in the UAE surged by 24 per cent, followed by Kuwait with a 23 per cent increase.

We have established strong partnerships in these markets, with dedicated facilities like the Patrol service centre in Kuwait and a fully digital service centre in Abu Dhabi, catering directly to customer needs. These markets exhibit strong brand affinity, and we are committed to leveraging this to expand our presence further.

As we navigate an evolving automotive landscape, our focus remains steadfast on delivering quality and value with unmatched service. This proven formula has underscored our success, and we are determined to uphold these standards while expanding our partner network across the region. We have a dedicated regional office set up in Saudi Arabia as we recognise the importance of this market.

Our expansion plans include strengthening our market presence in Iraq and Oman, where we see significant growth opportunities in these emerging markets. Establishing a robust footprint in these regions will enable us to cater to the rising demand for our products and services, driving regional growth and long-term business success.

How does Nissan adapt its vehicle lineup to meet the diverse needs and preferences of customers in the Middle East?

At Nissan, we prioritise our customers in the Middle East, recognizing their unique and diverse preferences. Our vehicle lineup is tailored to meet local demands, informed by constant customer feedback.

We’ve introduced region-specific models, including the race-inspired Patrol NISMO, which caters to the region’s passion for performance, offering 4×4 capabilities with superior handling. In addition to this, the recently launched X-TRAIL N-Trek model is well-suited to both desert and urban environments, reflecting our commitment to meeting diverse customer needs.

While SUVs are a key growth driver for Nissan in the region, sedans remain an important part of our company’s product strategy too, providing advantages across several attributes, including cost of ownership.

Customer insights and community engagement are integral to our approach, guiding us in understanding their preferences and purchasing decisions. For example, with the Nissan Altima our customers expressed a strong desire for advanced driving assistance features to make commutes safer and convenient and in response, we introduced ProPILOT.

Similarly, the integration of NissanConnect in the Patrol is a direct result of customer feedback. Our customers want a seamless and intuitive way to stay connected and navigate their journeys, NissanConnect provides a comprehensive suite of features to enhance the driving experience, making it easier and more enjoyable.

Can you provide more details about the implementation of The Arc, Nissan’s global business plan, and how it will impact the Middle East market? What are the top strategic priorities for Nissan in the Middle East over the next few years?

The Middle East is an important region for Nissan, and our strategic priorities over the next few years are designed to drive significant growth and success here. Our focus will be on implementing The Arc business plan, expanding our SUV lineup, deepening our market presence, and progressing sustainability.

The Arc, Nissan’s global business plan, is aimed at accelerating growth and sustainability worldwide, including in the Middle East. This plan includes the introduction of five new Nissan SUVs to the Middle East market, including two new models built and exported from India.

In addition to expanding our SUV lineup, The Arc includes the introduction of electric vehicles to the Middle East, serving as a springboard to capitalize on Nissan’s strong brand presence in the region to drive further growth. These EVs will cater to local demand and regulatory requirements, aligning with Nissan’s global goal of achieving carbon neutrality by 2050.

Nissan remains committed to offering a complete lineup of vehicles that meet the needs of our customers across a variety of segments while staying agile to leverage market opportunities and deliver value. The Arc also underscores our efforts to enhance customer experiences through advanced technologies, ensuring seamless connectivity and safety features across our vehicles.

As we implement The Arc in the Middle East, collaboration with local stakeholders, including governments and industry partners, will be pivotal in facilitating an ecosystem conducive to sustainable mobility. By leveraging our global strategy and tailoring it to local dynamics, Nissan aims to lead the charge towards a cleaner, more connected automotive future in the Middle East.

What broader industry trends do you see influencing the automotive market in the Middle East, and how is Nissan positioned to capitalise on these trends?

The automotive market in the Middle East is evolving rapidly, influenced by several key trends – and Nissan is strategically positioned to respond effectively to these shifts, enhancing the customer experience and meeting their needs.

One of the most prominent trends we have observed is the rising popularity of crossovers. Consumers are increasingly drawn to these models because of their versatility, combining the best features of SUVs and sedans. They offer ample space, comfortable driving dynamics and higher driving position, which many find more appealing. Recognising this shift, we have expanded our lineup, including models like the X-Trail and Kicks, designed to meet this growing demand with a blend of functionality, advanced technology and appealing designs.

Another notable trend is the increase in demand for second-hand vehicles. Economic factors and fluctuating oil prices are driving consumers towards the second-hand market. We have responded by enhancing our certified pre-owned programme, ensuring our second-hand vehicles meet the highest quality standards and provide customers with confidence in their purchases.

Lastly, with the Middle East’s high internet penetration and mobile device usage, consumers increasingly expect seamless and convenient digital experiences – including online vehicle browsing, virtual test drive bookings, and connected car technologies. Nissan is prioritising digitisation across the business, with enhanced vehicle connectivity and online aftersales services, reflecting the region’s increasing preference for digital interactions.

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