In an exclusive interview, Bilal Muhammad, Editor-in-Chief at The Zenith Magazine, sits down with Sebastian Fuchs, Managing Director at AutoData ME, to discuss the company’s rapid growth, market expansion, and the future of automotive data in the Middle East.
Bilal Muhammad: Lovely to meet you, Sebastian. AutoData ME has seen incredible growth, reaching 18,500 users in just a year. What strategies have driven this rapid adoption, and how do you plan to scale further?
Sebastian Fuchs: Thanks, Bilal. It really comes down to creating a product that meets consumer needs. We’ve combined elements from strong Western products into one comprehensive solution, offering transparency in pricing and vehicle history. We also provide a teaser for free, so users only pay if they find value in the report. This transparency and ease of access have been key factors in our success.
Additionally, our pre-vetted partner network simplifies the car-buying and selling process, saving consumers from navigating multiple platforms and reviews. It’s a one-stop shop, making the journey smoother for our customers.
We also have the Vehicle Report which is an innovative platform providing customers with detailed vehicle history, car valuation, damage reports, and recall data at the Vehicle Identification Number (VIN) level.
Bilal Muhammad: How does the car market in the Middle East compare to the West? Have you noticed any key differences?
Sebastian Fuchs: The UAE has three distinct car markets: new cars from established dealers, independent high-quality dealers, and the lower-price segment where trust can be an issue. This segmentation increases the demand for our services.
Unlike the West, where regulations and standardisation provide a level of trust, the Middle East is still evolving in this regard. Another major difference is the influx of Chinese vehicles, which are reshaping the market. Additionally, geopolitical factors, such as the recent opening of the Syrian market, have created new dynamics, increasing demand for affordable vehicles.
Bilal Muhammad: Given that Middle Eastern cars need to meet specific climate and road conditions, how does this affect your valuation process?
Sebastian Fuchs: We track chassis numbers to determine whether a car is GCC-spec or imported, which influences its valuation. In mainstream brands, non-GCC specs often come with a 10-20% discount, but for rare or collectible cars, imported versions can sometimes sell for more.
Our recent partnership with Dubai Customs and our collaboration with Carfax allow us to provide comprehensive vehicle history data, ensuring accurate and trustworthy valuations.
Bilal Muhammad: Strategic partnerships, like the recent one between Bang & Olufsen and Ferrari, are becoming more common. Do you see this trend continuing?
Sebastian Fuchs: Absolutely. Partnerships add value for both businesses and consumers. For instance, our collaboration with Yalla Motors enhances the user experience by integrating data-driven insights. Beyond profitability, our key focus is fraud prevention and road safety, which drives many of our strategic alliances.
Bilal Muhammad: What does the future look like for AutoData ME over the next few years?
Sebastian Fuchs: Our focus remains on growth and innovation. We recently launched a dealer product, Deal Refs, which is gaining traction. By the end of this year, we aim to cover the entire GCC region. In Saudi Arabia, we already lead in insurance-related automotive data, and we’re developing AI-driven risk assessment tools to revolutionise insurance pricing models.
Additionally, we’re launching an analytics hub to provide real-time market insights. Overall, expect significant growth—potentially doubling our business in the near future.
Bilal Muhammad: AI is transforming various industries. How is it shaping AutoData ME?
Sebastian Fuchs: AI is fundamental to our business. Around 35% of our data processes are already AI-driven. However, implementing AI isn’t as simple as people think; it requires constant training and refinement. AI allows us to scale efficiently without exponentially increasing our workforce. It’s an integral part of our expansion strategy.
Bilal Muhammad: Electric vehicles are making waves globally. Do you think the Middle East could transition to an all-electric future?
Sebastian Fuchs: It’s highly possible. The UAE’s goal is 15% electric vehicles by 2050, but I believe Dubai will surpass that target. With abundant solar energy and infrastructure projects making the city more pedestrian and bike-friendly, an electric-only future is feasible. Noise pollution reduction is another factor that could accelerate this transition. A friend recently visited Shanghai and noticed how much quieter the city had become due to widespread electric vehicle adoption. I expect Dubai to follow a similar path in the coming years.
