2012-12-02 16:24:04 - Fast Market Research recommends "Qatar Autos Report Q1 2013" from Business Monitor International, now available
Expansionary fiscal policy, low unemployment and booming credit levels are proving to be the major forces driving strong growth in the Qatari new vehicles market. Most recent estimates from local news sources and dealerships indicate that domestic sales for new cars in Qatar was up a robust 38% year-onyear (y-o-y) to 54,362 units during the first eight months of 2012. At this rate, the market looks set to significantly outperform 2011, when the market shifted a total 62,346 new vehicles.
This growth clearly falls in line with BMI's view that although headline real GDP growth in Qatar is set to slow down to 7.8% and 6.9% in 2012 and 2013 respectively (from 14.7% in 2011) as oil and gas production reach
capacity, the outlook for the real economy remains as robust. Consumers in Qatar are benefitting from the large public sector wage hikes (a 60% increase for most government employees was implemented in 2011), which continues to bolster household incomes. With the official unemployment rate standing at less than 1%, per capita GDP among the highest in the world, and inflation in the low single digits, our macroeconomic team believes that consumer spending is likely to remain buoyant in the near term.
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More support to the market is likely to come from the booming vehicle financing segment. In September 2012, Qatar's Commercialbank joined hands with Saleh Al Hamad Al Mana Co, authorised dealer of Nissan, Infiniti and Renault car brands, to launch a Vehicle Finance event, offering discounted rates for vehicle loans and insurance. BMI believes that such initiatives have partly been prompted by strong prospects for vehicle demand and partly as an outcome of the overall boom in credit levels in the country. After a challenging period in the aftermath of the global financial crisis in late 2008, the Qatari banking sector has bounced back strongly over the past year, with credit growth rising from 9.2% y-o-y in May 2011 to a 40-month high of 40.2% y-o-y in May 2012. We expect strong growth across the economy to keep demand for new credit, which in turn, this will help boost auto sales.
In addition to premium vehicles, we see particularly strong prospects for growth in the commercial vehicle segment, thanks to Qatar's emerging status as the hub for infrastructure activity in the MENA. The country's US$150bn National Vision 2030 has led to the instigation of a large number of infrastructure projects. This includes spending for the 2022 World Cup, with an estimated US$80-100bn of investment planned in preparation for the tournament, including transport infrastructure and commercial projects such as resorts and leisure facilities.
German truck maker MAN accordingly plans to triple its vehicle sales, to nearly 450-550 units, in Qatar over the next two years, a company official has revealed. The German truck maker claims to have occupied over 20% of the Qatari commercial vehicle market and is looking to increase this to 25%.
Report Table of Contents:
- Qatar Autos Industry SWOT
- Qatar Political SWOT
- Qatar Economic SWOT
- Qatar Business Environment SWOT
- UK Boosts Europe, But Favourites Still Outperform
- Table: Passenger Car Sales 8M12
- Incentive Boom For Japan, US Powers On
Industry Risk/Reward Ratings
- GCC States Still Dominant
- Table: Middle East And North Africa Autos Risk/Reward Ratings
Macroeconomic Forecast Scenario
- Table: Qatar - GDP By Expenditure, US$ Terms Breakdown
Industry Forecast Scenario
- Table: Autos - Trade And Car Ownership Rate
- Recent Developments
- Table: Top 10 Best-Selling Models 2011
- Qatar Automobiles Company
- Table: Qatar's Population By Age Group, 1990-2020 ('000)
- Table: Qatar's Population By Age Group, 1990-2020 (% of total)
- Table: Qatar's Key Population Ratios, 1990-2020
- Table: Qatar's Rural And Urban Population, 1990-2020
- How We Generate Our Forecasting Model
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