Oman new cars sales at best first half ever with +4.6% thanks to unchanged government investment policy albeit low oil price. Toyota was near 60% of market share with the top seven models in a row.
The Omani government has emphasized that it is committed to pushing ahead with costly industrial and infrastructure projects despite a substantial deterioration in revenues. The combination of lower revenues and continued spending is straining public finances; the government posted an almost USD 7 billion deficit through the first eight months of the year according to official figures.
This puts Oman on track for a fiscal deficit in the double-digits as a percentage of GDP this year. The government is relying in part on issuance of new bonds to cover costs. On 27 October, the Ministry of Finance completed the sale of USD 650 million in five-year sukuk bonds. This followed several sales of conventional bonds earlier this year designed to cover the growing deficit.
However, the government will likely have to cut massive fuel subsidies in order to finance ongoing public investment next year.
Following a long period of robust and unrest growth the Omani new vehicles market could break the growth due to the economic crisis generated by the sharp cut of oil price in the international market.
Doubling volume from 2005 and 2013 the market gained the World’s 39th place with an annual record actually fixed in the 2013 at 217.000. Last year, volume slightly declined at 213.541 while the major risk for changing the trend was in the 2015.
Anyhow the government policy that has unchanged the budget simply increasing the deficit has so far encouraged consumers to not reduced their spending with benefit for the automotive sector as well.
Consequently in the first half of the year, according to data release by the Omani Authority for Transportation, the sales of new vehicles are reported up again at 113.605 (up 4.6%). Moreover, this was the best first half ever, considering that last year the market was over the record for the entire first half, losing terrain just in the fall of the year.
Perspectives for next months are moderately positive while risks for 2016 are in place, depending by political decisions.
Selling 62.495 vehicles, Toyota reported a 5.7% increase with market share stable at the phenomenal 55.0% that grow at near 60% when including Lexus sales. Main challengers are Nissan with share at 9.4% and Hyundai at 7.9%.
The best-selling models list is definitively the Toyota line-up with Hilux first with a record of 13.120 units followed by the Land Cruiser P/U with 11.630 and by thee Land Cruiser 200 with 11.220 units.
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Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2020.
Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end.
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