Bahrain Auto Sales interrupted the recent years’ negative trend in 2018 with 38.872 units sold (+1.7%). Toyota, the market leader, fell down 6.3% while Nissan and Honda scored an impressive performance, improving over 20%. The introduction of VAT in January 2019 should penalize the start of the new year.
Economic Environment
Bahraini economy softened in Q4 2018 as ebbing crude oil prices dragged on the oil sector. Moreover, declining prices for aluminium, the country’s second-top export, could also have hit economic growth in the period. In more positive news, total non-oil exports accelerated notably in 2018, reflective of diversification efforts, while FDI climbed to an all-time high in the year.
The construction and manufacturing sectors should underpin growth in 2019, while fiscal discipline should boost business confidence and investment in the longer-term. That being said, the introduction of the VAT in January and a tighter fiscal stance will likely hurt domestic demand in the short-term.
Market Trend
Bahrain vehicles market ended in 2015 a long positive period, hitting the all-time record at 65.042 sales. However the economic crisis generated in the region by the fall of oil price in the international market have rapidly reduced the consumer’s demand and sales dropped to 49.800 in the 2016 and 38.260 in the 2017, down 23.2%.
In the 2018 the new vehicles light vehicles market has stopped the fall. Indeed, after a negative start, the year ended with sales at 38.872, improving 1.7% from the previous year. However, after having created a pull-ahead effect until December 2018, the introduction of VAT in January 2019 should penalize the start of the new year.
At brand-wise, the 2018 market leader Toyota has lost share selling 13.321 units (-6.3%) while the second, Nissan, soared to 27.7% at 4.505 units and the third, Hyundai reported a heavy loss. Honda jumped in fourth place, scoring a brilliant performance (+20%), with 1.919 units sold.
Tables with sales figures
In the tables below we report sales for Top Brands
