Kuwait Autos Report Q3 2010: New research report available at Fast Market Research

July 7, 2010 - PRLog -- Kuwait's auto market is growing slowly but steadily in 2010, as economic recovery and renewed confidence gain momentum. Sales took a small dip in 2009 as the impact of the global financial crisis was felt, particularly in lower crude oil prices. With incomes and banking liquidity tightening, sales fell slightly to 119,133 units, from 122,632 in 2008.

While growth has returned to the economy, there are still factors holding back the auto sector, which remains, fundamentally, a small market. Recovery will therefore be gradual. BMI forecasts vehicle sales rising to 121,861, still below 2008 levels. By 2014, annual sales in Kuwait should reach 140,361 units. BMI forecasts real economic growth of 1.7% for 2010, accelerating to 4.2% by 2014. This assessment balances both the upside factors and the downside risk associated with the Kuwaiti economy, which apply more or less directly to the auto sector. On one hand, oil prices have remained historically high and stable in 2010, at around US$80 per barrel. Kuwait also has a sound macroeconomic structure. On the downside, Kuwait's economy remains over dependent on oil and foreign labour. Inflation is also a risk across the GCC member countries owing to high oil incomes. Inflation tends to erode real incomes, particularly if salaries do not keep up, and therefore lowers consumer spending power, a key factor in vehicle sales.

However, given its geography and wealth, Kuwait will continue to be an appealing destination for many automakers, particularly in niche businesses. Evidence suggests that luxury car sales in the Gulf have held up better than the rest of the market, and potential remains strong among a rich, demanding and consumer-minded population. For example, a strong set of results in the Middle East has helped German premium brand Audi reach record global sales in Q110. It sold 1,579 units in the Middle East, up 8.5% year-on-year (y-o-y). A particularly good month in March saw the brand achieve sales growth of 30.8% y-o-y, which contributed to the overall Q1 performance. In terms of market, Audi highlighted the UAE, Kuwait and Saudi Arabia as its best performers. These are all markets that BMI expects to achieve positive vehicle sales growth in 2010 and Audi believes its momentum in Q1 can be maintained for the full year.

But there are opportunities for mass-market firms as well. Ford Motor's Gulf wing has been resurgent in 2010, with sales in the GCC member states rising 43%, against 5% for the market as a whole in the first quarter, Gulf News reported in April. In Kuwait, sales of the firm's trucks and SUVs grew 40%.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/71573_kuwait_autos_report_q3_2...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Kuwait Auto 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
- Middle East And Africa Business Environment Ratings
Industry Forecast Scenario
- Production And Sales
- Kuwait Auto Sector - Historical Data And Forecasts
Macroeconomic Forecast Scenario
- Table: Kuwait - Economic Activity
- 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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