Qatari new vehicles suddenly surged to 25% in June, with 3.810 units sold. Toyota marked an outstanding performance – the best in the Top 10 – holding 31.2% of share. Behind, Nissan and Mitsubishi improved over 40%, marginally recovering from the previous’ months heavy losses.
Qatari economy posted a modest acceleration to 0.9% year-on-year growth in Q1 after a weak 0.5% outturn in Q4 last year. Q1’s expansion was driven by the mining and quarrying sector’s return to growth for the first time since Q4 2017. Meanwhile, the manufacturing sector also posted a solid turnaround.
Turning to Q2, the non-energy sector appeared to weaken with the PMI falling to an all-time low in June despite healthy annual credit growth in April–May. That said, the energy sector should have picked up some of the slack, as suggested by robust mining growth in the same period.
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, pulling year-to-date figures down just 1.9% at 25.561 units.
The competitive landscape in June was of course dominated by Toyota, selling 8.472 vehicles (+0.4%) with 33.1% of market share.
In second place Nissan with 3.269 units (-18.3%) and in Kia gaining the market podium with 1.592 (+2%).
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.