Bahrain Vehicles Market 2016 down sharply falling back at the 2012 level, albeit positive signs reported in the fourth quarter. 2017 will be positive back waiting for 2018 3.5% rate VAT introduction. Hyundai shines.
Bahrain’s economy gained momentum in Q3 2016 after a weak showing in the previous quarter, with GDP rising at a faster pace thanks to strong growth in the country’s non-oil sector and job creation continuing at a brisk rate. The construction industry was at the heart of the improvement, propelled by unprecedented infrastructure investment, with a project pipeline totaling USD 69.7 billion in December.
Growth is expected to dip slightly this year, with the oil sector set to remain weak despite a predicted modest uptick in oil prices. Moreover, the looming risk of further interest rate hikes and the knock-on effect on borrowing costs is likely to growth.
Vehicles market reported a sharp fall in the 2016, ended with the fourth quarter down near 14%, prolonging the decline started in mid 2015 and boosted by economic effects of oil price fall. Light vehicles volumes ended the year at 49.669 units (-23.9%), falling back at the 2012 level , however the fourth highest ever.
The market leader, Toyota has lost a little more than the market (-25.4%) and Nissan did the same (-24.8%). Better performances had been done by the third, Hyundai (+3.2%). In fourth place and leader among premium brands, Lexus has lost 15.1% and was followed by Kia (-33.9%), Honda (-14.4%) and Isuzu (-7.5%).
At model wise, the best five models had been made by Toyota with podium unchanged from the previous year. The leader is the Toyota Land Cruiser with 4.483 sales (-25.6%) followed by the Toyota Prado with 2.942 (-24.6%) and the Toyota Hilux with 2.773 (-40%).
Effective from January 1, 2018 it is anticipated that Bahrain will introduce a broad Valued Added Tax (VAT) at a rate of between 3-5%. All businesses in Bahrain will be affected since VAT will impact most sales of goods and services within Bahrain, where it is anticipated there would be limited exemptions and consumption tax relief. Effects on the sector should be positive in the second half of 2017, anticipating sales to avoid the 2018 price increase.
Tables with sales figures
In the tables below we report sales for Top Brands
