American electric vehicle maker Lucid is shifting its sales strategy in the United Arab Emirates. The luxury car maker plans to move from direct sales to an indirect dealer model. The decision extends a major business change that started in Europe earlier this year. This move makes the United Arab Emirates the second market to drop direct store sales.
The strategic pivot comes as regional sales show a sharp drop in quarterly revenue. Financial filings show revenue outside Saudi Arabia fell to thirty two thousand dollars recently. That small total equals less than half the price of one luxury sedan. Overall regional sales dropped by ninety percent compared to previous quarterly performance periods.
Company documents show the business strategy shift was planned months ago. A presentation given to financial investors listed the United Arab Emirates under indirect sales markets. The company plans to use third party dealers to lower overall operating expenses worldwide. Executive leaders say indirect sales lower initial setup costs by eighty five percent.
The strategy expands even though early tests in Europe produced low initial delivery numbers. A major dealer group signed in Germany delivered very few vehicles over four months. Official registration data showed limited sales growth through the new partner program. Yet, executive leaders state the setup allows faster entry into new foreign cities.
To boost regional customer interest, the brand launched local financing options and price cuts. Prices for top sedan models were reduced by over five percent in Dubai showrooms. The car maker opened its main regional retail studio in Dubai two years ago. However, local order growth slowed compared to larger fleet orders in neighboring countries.
The move marks a clear change for a company built on factory direct sales. The firm will rely on local distributor partners across future international sales markets. New markets across Europe and Asia will also follow this indirect distribution approach. Local dealership groups will manage sales, customer service, and vehicle deliveries directly.
Industry watchers are monitoring how local buyers react to third party retail partners. Partnering with established retail groups gives the company access to existing customer networks. It also frees up capital to support main vehicle production goals. The brand aims to balance overhead costs while trying to grow global delivery numbers.
Regional auto groups expect the company to announce an official local partner soon. The brand continues to operate its direct sales network in North America and Saudi Arabia. Future expansion plans will focus on building strong ties with local vehicle distributors worldwide. The shift reflects broader efforts to reach profitability in challenging global EV markets.
