"Kuwait Autos Report Q1 2010" now available at Fast Market Research

Jan. 13, 2010 - PRLog -- The Kuwaiti automotive market is set to shrink markedly in 2009 amid rapidly deteriorating economic circumstances, with  BMI forecasting a 5.0% drop in car sales. The market will mirror trends within the wider economy, suffering from lower oil revenue and falling consumer confidence. The outlook for car sales has deteriorated considerably since the previous quarter as liquidity in the banking system has dried up and the financial sector has been thrown into turmoil. At the same time, the expatriate population is shrinking as jobs are cut, thereby reducing the number of consumers and cutting the size of the potential market. Kuwaiti residents are also seeing their personal wealth plummet with the sharp fall in the stock market and property values. These will conspire to depress the Kuwaiti car market, which had never seen the kind of growth levels observed in the United Arab Emirates (UAE). Consumer spending will contract by 2.0% in 2009, with  BMI forecasting automotive sales volume to fall 5.0%. With the economy set to shrink by 1.0% this year, despite the government 's stimulus package, recovery will be slow to arrive, with GDP growth of just 0.4% in 2010 providing little impetus to consumer confidence. The recovery from 2011 will not reach the same rates of growth as pre-recession levels.  BMI forecasts consumer growth of 2.0% in 2011 and 3.0% in 2012-13, compared with 6.0-10.0% in 2006-08. This will translate into lower rates of car sales growth - 2.5-3.5% annually - compared to up to 8.5% in recent years. By 2013, sales on the Kuwaiti market should have exceeded 2008 levels, reaching 127,235 units. The contraction in consumer spending comes from a very high base, and could be even more drastic but for the entrenched culture of government bail-outs and fiscal stimuli in Kuwait. The government has also been spending generously to support the banking sector, guaranteeing local bank deposits. However, these measures may not necessarily boost private spending, even if they prevent an outright collapse. A sustained rise in oil revenue through a rise in oil prices could bolster liquidity and encourage greater bank lending, providing a stimulus to automotive sales. Kuwait scores 54.1 points (out of a theoretical maximum of 100) in the  BMI Automotive Business Environment rating this quarter. This puts it in fifth place, 0.2 points behind Saudi Arabia and 2.6 points ahead of Bahrain. A lack of an automotive production base, low rates of sales growth and lack of market openness have dragged down the country 's score, despite possessing a highly developed national infrastructure and strongly positive long-term economic risk factors.

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Report Table of Contents:

Executive Summary
- SWOT Analysis
- Kuwait Automotive Sector SWOT
- Kuwait Political Swot
- Kuwait Economic Swot
- Kuwait Business Environment Swot
- Regional Overview
- Change Ahead For The GCC
- Trouble In South Africa And Turkey, Uncertainty In Iran
- Impact On Production
- Business Environment Ratings
Table: Middle East And Africa Business Environment Ratings
- Kuwait - Business Environment Ranking
- Limits Of Potential Returns
- Risks To Realisation Of Potential Returns
- Industry Forecast Scenario
- Production And Sales
- Kuwait Autos Sector - Historical Data And Forecasts
- Macroeconomic Forecast Scenario
- Kuwait - Economic Activity 2007-2014
- Competitive Landscape
- Industry Developments
- Regional Developments
- Automotive Parts
- Luxury Cars
- Retail
- Company Monitor
- Regional Case Study: Nissan Motor
- Production
Table: Nissan MEA Production Facilities
- Sales
Table: Nissan MEA Distributors
- Company Profiles
- Arabian Motors Group
- Kuwait Automotive Imports
- Alghanim Automotive
- Country Snapshot: Kuwait Demographic Data
- Section 1: Population
- Demographic Indicators, 2005-2030
- Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Education, 2002-2005
- Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Employment Indicators, 1997-2006
- Consumer Expenditure, 2000-2012
- BMI Methodology
- How We Generate Our Forecasting Model
- Sources

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