Follow on Google News News By Tag Industry News News By Place Country(s) Industry News
Follow on Google News | Recently released market study: Qatar Autos Report Q1 2011New Transportation research report from Business Monitor International is now available from Fast Market Research
In recent months, there has been a concerted government effort to reduce the price of cars and auto parts. Earlier in 2010, the Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al Thani raised this issue at the annual meeting of the Qatar Chamber of Commerce and Industry, according to The Peninsula. At this time, the head of government warned that if car dealership did not reduce car prices, the government would take 'appropriate steps'. He also stated that some dealers were charging an extra levy of up to QAR40,000 on some car models and warned that some dealers could be stripped of their current monopolies if they did not reduce prices. Clearly, any government moves to reduce the cost of car ownership for lower-income families would do much to bolster overall car sale volumes within Qatar. At present, the emirate is viewed as a high-margin, but low-volume market, with car sales concentrated at the high end. This move towards reducing prices, coupled with the recent signing of a distribution agreement between local vehicle distributor Domasco and Malaysian carmaker Proton (see page 20) reinforces a trend towards the growth of volume brands in Gulf Co-operation Council (GCC) states. Country overview There are no comprehensive and reliable vehicle sales and import statistics available for Qatar, which has only a very small car industry, owing to its low population (1.6mn in 2009). However, some dealerships do release their sales figures on a periodic basis, making it possible to get a partial handle on local vehicle demand and the overall direction of sales and imports. Despite reasonably strong (oil and gas sector-led) real economic growth of just over 8% for Qatar's economy during 2009, car sales had a relatively difficult year because of the bursting of a speculative bubble, which saw real estate prices crash. This had a significant effect on consumer demand (and access to bank credit) during the year, crimping sales of new vehicles. The signs are that 2010 will be a substantially better year than 2009. Our macroeconomic team forecasts that overall GDP growth will nearly double this year, to just over 15% (despite a slowdown in the construction sector). Continued strong activity in the oil and gas sector (where prices are once again very buoyant), together with the stabilising effects of a substantial public injection of funds into the banking sector, help to explain the strong anticipated rate of overall economic growth. A further boost to the economy - and car demand - has been provided by the central bank cutting its key overnight deposit rate by 50bps in early August 2010, which took this key rate down to 1.5% (the first change to the cost of borrowing for more than two years). This should provide a substantial boost to consumer demand - savers will be more inclined to spend (due to lower returns on deposit accounts), while car buyers relying on borrowing to fund (or part-fund) their purchases should be able to access cheaper credit. Spotlight on trucks This report also includes an analysis of Qatar's truck market. Demand for trucks (particularly second hand trucks) was boosted by the colossal construction boom experienced by the Gulf state, but the end of that boom resulted in a glut of vehicles in this market. Going forward, while government investment in infrastructure will support the construction sector, this is unlikely to generate a quick knock-on recovery for the truck market, due to the extent of the earlier oversupply of vehicles, according to our analysis. Dana named McLaren partner Dana Motors was named McLaren's official partner for the distribution of the latter's first consumeroriented car, the MP4-12C, in August 2010. The McLaren brand and reputation is predicated on its success in Formula 1 racing. The MP4-12C will be available from mid-2011, tapping into a Qatari market that has a large preponderance of ultra-high-net- Inaugural Qatar motor show to be held in January 2011 Qatar is to stage its first ever international motor show in January 2011, in a development that should continue to boost customer interest in automobiles. The show - which is part industry convention and part visitor experience - will concentrate on showcasing Italian carmakers, with an area dedicated to the specialist coachbuilders Autostudi, Bertone, Castagna, Fioravanti, Pininfarina, Salt, Spada and Touring Superleggera. These companies will be showcasing their range of concept cars, prototypes and super cars. This focus on high-end Italian car designers should appeal to the UHNW customer base within Qatar and should act as a support for new car sales, particularly at the luxury end of the market, in early 2011. For more information or to purchase this report, go to: - http://www.fastmr.com/ About Business Monitor International Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/ About Fast Market Research Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
Account Email Address Account Phone Number Disclaimer Report Abuse
|
|