Interview: Carlos Montenegro of Trading Enterprises on Jeep, RAM, Volvo and the Changing UAE Automotive Market

The UAE automotive market is evolving rapidly, with buyers faced with more brands, powertrain choices and technology than ever before. While SUVs continue to dominate local demand and pickup trucks are increasingly becoming lifestyle vehicles, customers are also paying closer attention to factors such as reliability, resale value, aftersales support and the overall ownership experience.

DriveArabia spoke with Carlos Montenegro, Managing Director – Trading Enterprises, Al-Futtaim, to discuss how customer expectations are changing in the UAE and what this means for brands such as Jeep, RAM and Volvo.

In the interview, Montenegro shares his views on the growing lifestyle appeal of SUVs and pickups, the role petrol, hybrid and electric powertrains will play in the coming years, how technology is reshaping the premium vehicle experience, and where he sees the UAE automotive market heading over the next three to five years.

SUVs continue to dominate the UAE market, but customer expectations have evolved significantly. What are the biggest changes you’ve seen in what buyers now look for in an SUV compared to five years ago?

The UAE SUV market has become significantly more dynamic over the past five years. Buyers today have access to an unprecedented number of brands and models, offering a wide variety of powertrain options, technology packages and design philosophies across virtually every price segment. Competitive pricing and feature-rich specifications have encouraged many customers to explore alternatives they may not have considered before, contributing to a more diverse and competitive market.

Beyond the initial appeal of design, technology and price, customers are increasingly evaluating the complete ownership experience. Factors such as long-term reliability, resale value, aftersales support, parts availability and the reputation of the manufacturer have become increasingly important as buyers seek confidence that their investment will continue to deliver value over many years.

Another notable shift is that customers are choosing SUVs that genuinely reflect their lifestyle. Some require a dependable family vehicle for everyday use, others prioritise premium comfort and technology, while many in the UAE continue to value authentic off-road capability and adventure. Rather than looking for a vehicle that simply looks like an SUV, buyers want one that delivers on its intended purpose.

This trend plays to the strengths of our portfolio at Al-Futtaim. Honda continues to attract customers seeking exceptional durability, proven reliability and strong resale value. It is a brand that has consistently earned customer trust over decades, offering SUVs with timeless designs, excellent practicality and a worry-free ownership experience.

Jeep remains an icon in a market where off-road capability is part of the local culture. Its authentic 4×4 heritage, combined with everyday usability and one of the industry’s broadest ranges of factory-engineered accessories, allows customers to personalise their vehicles while enjoying genuine capability both on and off the road.

At the premium end, Volvo appeals to customers who value understated luxury, Scandinavian design and advanced safety innovation. The brand’s range of mild-hybrid and plug-in hybrid SUVs already offers an excellent balance between performance and efficiency, while the upcoming generation of fully electric SUVs represents the next step in Volvo’s commitment to sustainable premium mobility.

Ultimately, today’s SUV customer is looking beyond the purchase price. They are seeking a vehicle that combines technology, quality, dependability and strong ownership value throughout its lifecycle. That is where established brands with a proven track record continue to differentiate themselves, and where our portfolio is particularly well positioned.

Pickup trucks are increasingly being used as lifestyle vehicles rather than purely commercial tools. Do you see this trend continuing in the UAE, and how is it influencing the way brands like RAM approach the market?

Absolutely. The role of pickup trucks has changed, particularly in markets like the UAE.

Traditionally, pickups were viewed as work vehicles, valued for durability, strength and practicality. While those qualities remain essential, customers today see pickups as an extension of their lifestyle.

We see this clearly in how RAM performs within our portfolio. Customers still expect the power, towing capability and toughness the brand is known for, but they are increasingly looking for comfort, advanced technology and premium features that make the vehicle equally suited to everyday use.

A RAM owner may use their vehicle for business, family journeys, outdoor activities or desert adventures, sometimes all within the same week. That versatility is exactly why the segment continues to evolve.

Performance also remains a very important part of the connection customers have with their vehicles. Engines such as V8s continue to appeal to enthusiasts who value power, sound and character, while innovation is creating new ways to deliver performance in the future.

That balance between heritage and evolution is what continues to drive strong customer interest in RAM across the UAE.

Many buyers are now weighing traditional petrol models against hybrids, plug-in hybrids, and EVs. How do you see electrification shaping the future of SUVs and pickups in the UAE, and what role will each powertrain play over the next few years?

The future of mobility will be shaped by choice.

Every customer has different needs, and we believe different powertrains will continue to play important roles depending on how people use their vehicles.

Volvo’s approach to electrification, which we fully support through our distribution, has always been centred on giving customers the confidence and flexibility to make the transition at a pace that suits them.

Our T8 plug-in hybrids continue to play an important role for customers who want the benefits of electric driving for everyday journeys while retaining the flexibility of a combustion engine for longer trips. At the same time, we are bringing an expanding range of fully electric Volvo models to the UAE market, including the XC40 Recharge, EX30 and the all-new ES90, with two additional fully electric EX models arriving over the coming quarters.

What makes Volvo’s electrification strategy compelling from our perspective is that it goes beyond emissions reduction. Electric powertrains enhance the driving experience through instant performance, refinement and quieter, more effortless journeys, while remaining true to the safety, quality and Scandinavian design that define the brand.

The UAE is one of the region’s most progressive mobility markets, supported by strong infrastructure and ambitious sustainability goals. As customer confidence continues to grow, we expect electrified vehicles to become an increasingly important part of the premium automotive landscape.

Technology has become a major purchase factor, from advanced safety systems to connected services and over-the-air updates. How is Volvo using technology to redefine the premium ownership experience?

Technology has become one of the defining factors in the premium ownership experience, and it is central to why Volvo is part of Al-Futtaim’s portfolio in the UAE. The brand’s approach has always been to ensure technology serves a genuine purpose: making people’s lives safer, easier and more enjoyable.

Today’s customers expect their vehicle to integrate seamlessly into everyday life. They want intuitive connectivity, intelligent software and technologies that continue to improve throughout ownership, while always feeling natural and easy to use.

Safety remains at the heart of everything Volvo does. Advanced Driver Assistance Systems (ADAS) are designed to support the driver and help reduce the risk of accidents. Volvo consistently achieves outstanding Euro NCAP safety ratings, which is one of the strongest proof points we have when customers ask why they should consider the brand.

Connectivity is equally important. Customers increasingly expect their vehicles to evolve over time rather than remain static. Over-the-air software updates allow Volvo to continuously enhance infotainment, functionality and vehicle performance, ensuring customers benefit from the latest innovations long after they have taken delivery.

The all-new ES90 perfectly demonstrates this philosophy. Built on Volvo’s next-generation software-defined architecture, it combines advanced computing capability, intelligent connectivity and 800V charging technology with the human-centric design and safety that define the Volvo brand. Alongside this, vehicles such as the XC90 T8 Plug-in Hybrid demonstrate how electrification and technology can work together to deliver extended electric range, premium performance and everyday practicality without compromise.

The technologies that will matter most are those that genuinely improve people’s lives. That has been Volvo’s philosophy for nearly 100 years, and it is why the brand continues to resonate so strongly with our customers in the UAE.

Looking ahead, what opportunities and challenges do you see for premium SUV and pickup brands such as Jeep and RAM in the UAE, and how do you expect the market to evolve over the next three to five years?

From where we sit at Al-Futtaim, the UAE remains one of the most dynamic markets globally for premium SUVs and pickups. Customers here have a genuine passion for vehicles and high expectations of the brands and retailers serving them.

There is a strong connection between automotive culture and lifestyle in the UAE. Customers appreciate performance, design and technology, but they also need vehicles that suit the unique environment, from modern cities to desert landscapes.

For brands such as Jeep and RAM, this creates significant opportunities. Both brands have authentic heritage and clear identities, which is increasingly important as customers look for vehicles that reflect their personalities.

The challenge for the industry will be continuing to evolve while protecting what customers love about these brands. Innovation, electrification and technology will shape the future, but capability, performance and emotional connection will remain essential.

Over the next three to five years, the strongest brands will be those that combine heritage with innovation without losing the identity that made them iconic. At Al-Futtaim, our focus remains on the customer: ensuring they have the right choice of product for their lifestyle, backed by a seamless ownership experience and the aftersales support that builds loyalty long after the initial purchase. Whether a customer is choosing their first SUV or upgrading to a pickup, our responsibility is to make that journey as informed, personalised and rewarding as possible.