Qatar August. Hyundai surging 51.6% while the market fell suddenly down 24.1%

Qatari new vehicles

Qatari new vehicles declined by 24.1% in August with 3.404 sales. Toyota kept dominating with 33.3% of share, while Nissan, Kia and Mitsubishi registered double-digits drops. Impressive performance scored by Hyundai, soaring at 51.6%.

Economic Environment

Qatari economic growth was likely modest in the second quarter, after a rebound in the energy sector propelled a slight acceleration in the first quarter. The non-energy sector seems to have lost momentum in Q2, with the non-oil private sector PMI slipping throughout the period. This was despite healthy annual credit growth; higher tourist arrivals, thanks to government initiatives; and a pick-up in building permits in the period, which bodes well for construction activity.

Furthermore, the energy sector appeared subdued, as suggested by limp mining and quarrying activity in the quarter. Turning to the third quarter, the data looks no more promising: In July, merchandise exports were down significantly, while the PMI plunged to a fresh all-time low.

Market Trend

Qatar Vehicles Market in recent year is declining. Following the all-time record established in the 2014, when sales hit the 100.000 units, the fall of oil price in the international market and the consequent restrictive economic policy, hit the consumer demand starting a negative period not yet ended. Sales fell down for three consecutive years losing the half of 2014 volume and landing at 54.280 units in the 2017, losing a huge 25.6%.

The Government decision to postpone the already approved VAT introduction by one year did not sort great effects not solving the main economic issue represented by the too high level of national deficit. The vehicle’s market, which accelerated in Q4 2017 anticipating the price increase, was not able to generate new strong demand and the negative trend is still in place.

In the 2018 the market fell down again. Indeed, the year has signed the fourth negative annual score in a row, ending with sales down 6.3%. Moreover, the market has closed with registrations at 50.757, almost half of the 2014 all time record.

The 2019 started on a very negative tone, with 4.142 sales – down 17.3% – in January. However, in February the market signed a positive score – up 2% – with registrations at 4.204, and improving by 5.7% in March with 5.049.

In April, the market went marginally down (-4.2%) selling 4.035 units, while sharply declining in May with 4.277 (-12.4%) units sold. In June, sales suddenly soared 25% with 3.810, while in July registrations fell 1.6% at 3.355. In August the market lost 24.1% with 3.404 sales, leading year-to-date figures at 32.320 (-4.8%).

The competitive landscape in August was of course dominated by Toyota, selling 10.736 vehicles (+3.4%) with 33.2% of market share.

In second place Nissan with 4.305 units (-13.1%) and in Kia gaining the market podium with 2.010 (-5.1%).

Market Outlook

After establishing the All-time record in 2014, the Qatari market embarked on a negative path, signed by huge falls. However, the market is expected to recover during the 2019-2025 period of time. Being interested to know more, give a look at this updated research. Clicking on the picture, you can see contents.